Five Options In A Financial Worst Case Scenario

Posted on January 11, 2008

So let’s say you get into a worst case scenario of not having enough money for a very urgent short term expense. What is the best route to take? Many personal finance blogs talk in depth about long term savings strategies and those are very important. An emergency fund of three months pay is a must have, but not everyone has this in place when getting your finances turned around and out of debt. So here are some options to get out of a financial worst case scenario:

Ask family. This can be a bit tricky for many of us that do not like to mingle family and business, but it can be a worthy option at a low or no interest rate. I would lend my family money in a second if I have it and am in the position to help.
Work overtime or second job. Earning more money quickly is an ideal solution. Look for quick cash oriented jobs where you could work a weekend or a few night shifts.
Sell something. Many of us of “extra” items around the house that can be quickly sold on craigslist or eBay.
Cash advance from a credit card. This option can be expensive and risky. But in a worst case scenario it is an option. Many cards have limits for single day cash advances and begin accruing interest right away.
Payday loans. A last resort that can help get you out of the worst of the worst case scenarios. This is another option that has to be handled with care. Use it with the full understanding of the fine print, the fees, and the risk of late repayment. And remember the golden rule of payday loans is to not make it a pattern!