Having financial problems can cause serious stress on a person and their family members. Many people give advice such as put your goals on paper, reduce your expenses, call your creditors and see what you can work out or seek out the help of a financial planner or advisor. These however do not offer a solution to your problem now. You need to put a stop to the overdue payments now. You need other methods other than taking out a loan against your home. This is only effective for those with enough equity in their home.
Below are ways you can help rid stress from your life caused by financial issues. Once you have your finances in order, sit down immediately with a financial advisor and make a plan to say out of debt. You may not like what they have to say, but you will remember what you had to go through to get out, and be more willing to oblige.
Take a Payday Loan
If you have an immediate need for a short term loan, consider taking a payday loan. These loans can be given in under 24 hours and come right in time when you have car repairs or short on your paycheck. These loans are not meant to be used month after month. They have an extremely high interest rate and will put you further into debt.
Transfer Your Credit Card Balance
If you have pretty decent credit, apply for credit cards that offer 0% interest rates for an introductory period. Transfer your current card balances over for a fresh 30 day start. This may help lower your total monthly payments because the interest charges are not accruing and due. Be sure to take advantage of any reward offers they have as well.
Pay Off Your 401k Loan
If you have a loan out against your 401k, consider paying it off and taking out a new loan. Your 401k is set up for you to receive a certain percentage of your available funds at a time. They generally are also set up to have two concurrent loans out. Set up a loan model online or call your loan representative to see how much funds would be available to take out a new loan if you paid a loan off. If you do not have the immediate funds available for the payoff, this would be a good option for online loans. These loans are quick and easy and you can do it from home. It is immediate funding and you may have your new loan available before repayment is due for it. Now you can extend your 401k loan and possibly free up even more money in your paycheck depending on the terms.
Take a Loan against Your IRA
Many people do not know you can take a loan out against your IRA with your financial institution. This is a great loan option because in most cases, you are not responsible for interest charges. Beware though, as the same rule applies, if you can’t pay the loan back, it will be considered taxable income at the end of the year.
Take a Loan Out Against Your Life Insurance Policy
If you have a variable, universal, or whole life insurance policy, you can take a loan out against it. Generally after 3 through 5 years, your policy will start to generate value. The value accrues, so it won’t necessarily be the amount you have paid into the policy. Some companies are fairly loose on the rules of taking out a loan and others are stricter. Be careful when deciding to take out the loan, because this brings down the value of your policy. This should be a last resort.