More steps you can take to plan for an emergency

By: David Mayer
Submitted: 2009-06-01 15:52:25
Print this article | Tell a friend | For publisher | Social Bookmarking
Rating:
 

Most people fail to think ahead. That means they get caught up in a panic when an emergency arises and, more often than not, end up taking short-term finance at very high rates of interest. This does nothing more than make the emergency worse. So, even though you may already be on the margin and living paycheck to paycheck, there are a few simple steps you can take to save yourself from the pain of these high-priced loans. The first involves joining a credit union. Almost every major city across the US has a credit union and their membership rules are reasonably easy to satisfy, being aimed at working families. Running a basic checking account is free at many credit unions or charged at a nominal level if you have your paycheck paid into the account. With an account in place, you are entitled to apply for a personal loan if a crisis arises. In most cases, approval comes through within one or two days. Some unions allow people to hold an application form on file so that a loan can be processed more quickly. The majority of unions charge around 18% for smaller amounts of short-term finance. The rules for larger amounts varies but the aim is to provide affordable finance to families in need. When other forms of finance can be charging 200% and more interest per year on short-term loans, credit unions are well worth investigating.

If you prefer conventional banks, some offer short-term loans of up to $500 if there is a crisis. You need to read the small print carefully before you sign up. The terms vary. Some banks require you to hold the account for a given period of time before you qualify for a loan, others have penalties if you fail to repay the loan within preset periods of time. Worked out over a year, the interest rates rise above 100% but they are still cheaper than the other short-term loans. Some credit unions and banks allow you to have a credit card linked to an overdraft facility. Under normal circumstances, a check written with inadequate funds in the account will be refused payment. But with the right agreement in place, the unauthorized overdraft will be considered a cash advance on the credit card. This is more expensive than a conventional overdraft but it will give you access to funds you might not otherwise get. Finally, you can search for a company still offering a Home Equity Line of Credit (HELOC)  facility. These have become more difficult given the credit crunch and falling property values, but if you do still have a reasonable equity in your home, you may be able to find a bank or finance company prepared to lend. If you are lucky, you should never sign up for a significant amount of money. Go for the minimum amount available. This is only intended as an financial emergency facility to avoid you having to take a payday loan.

To learn what David Mayer has to say about other things and look on the things from his point of view, visit http://www.money-saving-solutions.com/more-steps-you-can-take-to-plan-for-an-emergency.html where he frequently writes on many different subjects that you will find fascinating.

Article source: Expert Articles

Most Recent Articles in Loans category

  • PDF Solution Accelerate Banking Business While Reducing Cost and Effort - By: Stephen Murphy
    In order to reduce the daily operating cost, banks need to focus on how to improve cost-effectiveness and business process efficiency, which is as significant as customer service. With Internet and Adobe Acrobat, banks and customers can get a lot of benefits from this online business processing mode.
  • Want to Buy a New Car? Look Online for Advice - By: Michiel Van Kets
    There are plenty of people who quake at the thought of visiting a car showroom to look for a family car. There's no need to now, search online for car finance brokers and get all the help you need. Experts in cars and car loans, they are able to give you valuable advice and tips on choosing car loans to suit you, and make recommendations, in a lot less time than it would take you to find the car financing information out for yourself.
  • Stay at Home to Organize your Car Loan - By: Michiel Van Kets
    Searching for a car loan? Then look no further than your armchair. Just go online and get advice from a car finance broker and the next thing you know, you will be searching for the car of your dreams. Car finance brokers can help you out with getting a loan as well as good advice on suitable cars within your budget. With hundreds of business contacts, they know instantly the advisors that can be trusted and will be fair when quoting you a rate for a loan and conditions applied.
  • Lauton U: The Shocking And Controversial Truth About Project Funding - What You Need To Know - By: Joseph Polanco
    Ask anyone who has ever raised millions of dollars in funding and they will tell you that it is an expensive proposition. Whether it is an Initial Public Offering, a Private Placement or a simple commercial loan, it costs businesses thousands of dollars before they see their first dollar in funding. To the uninitiated this seems downright backwards. After all, they say, "My business needs money. Why should I have to pay any fees to get it?" While on the surface this seems to make perfect sense, a closer look at what goes on during a capital raise reveals some shocking facts.
  • Using Payday Loans To Tide Your Finances Over - By: Anne Ming
    Most people in the world owe someone some money. Others have huge debts such as tycoons whose debts go beyond the wildest imagination of the ordinary individual.
  • Credit rating won't affect your loan! - By: David Mayer
    Credit rating seems to be a real pain in a sensitive place that you can't just avoid these days. But some loans can be offered without looking into your credit history.
  • What will you actually pay for your loan? - By: David Mayer
    Credits and loans come for a certain price and when you opt for a cash loan you are charged with a certain fee. Learn more about the price of fast cash from this insightful article.
  • Types of cash loans - By: David Mayer
    Cash loans come in different forms and knowing the difference between them can really be important. This article will help you learn more about types of cash loans and when they are used.
  • What's the deal with loan rates? - By: David Mayer
    Every loan comes with a particular loan rate that a person has to pay off besides the lent amount of money. What these rates are all about and what is there in them for the borrower?
  • Cash advance with low interest - fast and easy - By: David Mayer
    Having a source of emergency financing with a very low interest rate is quite interesting and helpful. Learn more about low interest cash advance services in this article.