How to Use Personal Loans for Emergency Expenses

According to recent survey findings from the Federal Reserve, American adults that are able to cover small emergency expenses are at their highest level since 2013. 

The 2021 survey, the “Economic Well-Being of U.S. Households,” shows that 68% of adults could handle hypothetical unexpected expenses of $400 with cash, savings, or by using a credit card and paying that expense off on the next statement.

Even if more Americans can handle small emergency expenses, still, it is becoming more difficult to save, and not every emergency expense is a small expense.

Meanwhile, inflation is hitting hard, reaching 8.5% in 2022, which is the highest rate since 1982. What do you do when you are facing emergency expenses, and do not have enough money in the bank to cover them?

While the thought of borrowing from friends and family or putting emergency expenses on a high-interest credit card could tempt you, this is not your only option. In fact, a personal loan could be a much better option for you. Here is why.

One of Life’s Greatest Challenges

You are short on cash. You are under stress, even panicking. Now is the time to find a solution to get you past this challenge.

A personal loan could get you the cash you need quickly. Many lenders offer a simple application process. You could apply online and get a quick decision.

Personal loans can be an excellent solution for unexpected expenses because they are flexible. If your furnace breaks, your basement floods, your car breaks down, and many other scenarios could occur, getting a loan could be your lifeline.

Before you complete a payday loan application, consider that a personal loan is often much more affordable than credit cards and payday loans. Not only will you incur tremendous interest rates, but exorbitant fees as well.

Outstanding Features of a Personal Loan

First, when you have an emergency expense, it is just that, an emergency. You do not have a lot of time to shop around and wait on paperwork. You need quick action.

Some lenders will let you apply online for their personal loan, and you can be in the comfort of your home waiting for an instant response. When you get approved, you could get the money as quickly as the same day, although it varies. It could be 24 hours to a few days to receive the funds. 

Low Interest Rates

With the various options you have for emergency expenses, personal loans will offer a low interest rate. You will get a lower interest rate if you have a higher credit score. This means that the overall cost of your loan will save you thousands.

What if you don’t have good credit? Still, a personal loan is a good option for emergency expenses, as often online lenders will be lenient, more so than a financial institution. They will not just look at your credit, but also your employment history and income.

There are multiple factors that lenders will consider determining if they will grant you a personal loan and at what interest rate.

Flexibility

Repayment terms for personal loans are usually flexible, too. They could offer repayment terms of one year or five years. This is a significant benefit.

You can choose a personal loan with a monthly payment that will work for you and will be affordable enough to fit your budget. Their competitive rates help to make it affordable. Credit cards can really add up with their high interest rates.

Types of Unexpected Expenses

You are not alone. Unexpected expenses happen to everyone. Common emergency expenses include medical bills, car repairs, home repairs, and everyday bills.

Medical Bills

The emergency room will bring unexpected expenses. If you or your loved one have a medical emergency, the ER is expensive. Even if you have insurance, it is unlikely your policy will cover it all.

The out-of-pocket healthcare cost will add up quickly. It could end up in the thousands, maybe even more.

Car Repairs

While it may sound like an issue for an older car model, it is not. Even newer cars could need repair. Car repairs could be simple, like a fuse, or complex, like a new engine.

Home Repairs

A leak in your roof, cracked siding, or a broken pipe are examples of home repairs you could face if you own a home. These are emergency expenses that can add up quickly too, even in the thousands.

Monthly Bills

What would happen if your boss called you tomorrow and said, “I am sorry, but we have to make some cuts.” What would happen to you financially if you lost your job, or cut your hours in half?

If your paycheck were gone, even temporarily, how would you pay for groceries, utilities, mortgage, rent, etc.? You may need a personal loan to give you a bridge until you can get over this unfortunate hurdle.

Where to Get Personal Loans For Emergency Expenses

If you are facing emergency expenses, it is time to visit FastLoanDirect. Here, you get more lenders and more options. You provide the information for what you are looking for, and FastLoanDirect will connect you to lenders in your network.

You only need to use one simple form! You can complete this form at home, and in a matter of minutes. When you receive approval for a personal loan from a lender, your funds could be available the next day.

Don’t worry and get help with a low-interest-rate personal loan. Click here and connect with FastLoanDirect.