What to Do in a Money Emergency

What-to-do-in-a-money-emergencyMany people find themselves in a money emergency, unable to take care of a sudden expense. This can happen due to medical expenses, a car accident, or any unforeseen emergency. While ideally you have a savings plan to give you extra money when you need it, you could be early in your savings or you may not have been able to start your savings plan yet. Whatever the case, you do have some options to help you through your money emergency.

Family and friends – Reach out to family and friends to help you get extra funds that you need right away. This can be in the form of a loan or a gift, depending on you and the person helping you.
Sell your old and broken jewelry – If you have jewelry you don’t need anymore, consider selling it. Most cities have reputable jewelry dealers who will buy gold jewelry. Even if you have a broken necklace, they will usually purchase it at a fair price.
Pawn jewelry or other valuables – If you cannot bear to sell items and you know you will be able to buy them back (remember that will be at a higher price than what you pawned it for) you can pawn it at a local pawnshop. If you can, call around to see who will give you the best terms as far as what you can get for your items, how much you have to pay back, and how much time you have.
Sell your old cellphone – Even if your cellphone is old, you can still sell it for its parts. This can be an easy way to get some money for an emergency. Just make sure you clear off any personal data first.
Sell your records or old CDs – Vinyl records are collector’s items and you can sometimes fetch a good price for something you may not have listened to in years. You can also sell old CDs, getting a decent price if they are in good condition.
Do you have reliable public transportation? If you do, sell your vehicle and use public transportation to get around. This will not only get you a lot of cash fast, it will also save you money on gas in the long run.
Payment extensions – If you have a car loan, student loans or home mortgage, you may be able to get a payment holiday. This can free up a lot of money for you with little impact to your overall budget, since payment extensions just tend to extend the length of your loan.
Pinch pennies – Sometimes all it takes to get through a money emergency is pinching pennies. There are so many easy (and some not so easy) ways cut your budget. Sit down and write down everything you are spending money on. You may need to make some deep cuts, but often you can cut out the luxuries and save a lot.  If you can pinch pennies to take care of the emergency, that is going to be the best choice. See our posts on Getting Free Basic Cable

What happened to short-term loans and account overdraft options?

These are both costly and should be your absolute last resort. Short-term loans tend to be a never-ending cycle of taking out loans. Overdraft options on your account will get you out of an immediate emergency, but at the cost of multiple fees.

What advice do you have for surviving a money emergency?

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