The BBC has reported that 50% of young people in the UK do not have any savings. The figures recovered from the Office for National Statistics (ONS) also stated that even those with savings have less than £1,000 saved for a rainy day.
These trends are not exclusive to the UK with similar patterns detected in the USA, South Africa and Australia.
This is a worrying statistic considering the unpredictability of life. We may need instant cash to get out of sticky situations and real emergencies.
But even without savings, there are ways to get cash in an emergency.
Common Examples of Money Emergencies
The list of situations where people need money fast is almost endless. Here are some of the most common financial emergencies that people need quick cash for:
- Car repairs
- Household appliance replacement (e.g. white goods)
- Medical emergencies
- Your child’s school excursions
- Everyday expenses between jobs
The COVID-19 pandemic could be another reason your family needs a quick cash injection. If you need money for any of these things or a different emergency, help is at hand…
Your Options in a Financial Emergency
#1: Emergency Loans
Emergency loans are one type of loan that was designed for these exact circumstances. Most of the time these loans are paid back over a shorter period up to six months, and in some cases as short as a few days depending on your cash flow. You can find an example of how these work by reading Wonga’s guide. Their emergency loans may even available to some unemployed people if they can prove a secondary form of monthly income.
#2: Close Friends and Family
Some people prefer not to ask family or our closest friends to borrow money. But in an emergency, it is likely that these people who care about you are willing to help out if they are able to. If you feel comfortable enough to ask – and are sure you can pay it back – then there is no reason not to explore this option.
#3: Selling Possessions
You might not have cash, but you could have some valuable possession that you are willing to sell in order to generate money. You could sell:
- Games consoles
- Clothes
- Paintings
- Old furniture
- Jewellery and watches
It has never been easier to sell these items thanks to the likes of social media marketplaces and dedicated sites such as Gumtree and eBay. You can also sell jewelry and watches in a shop near you.
Combining Your Options Helps!
If you don’t want to commit to a bigger emergency loan, ask your family for a lot of money or sell sentimental items, you could use two or three of the options above at the same time. For example, you could sell items you wanted to get rid of anyway, ask family for a smaller amount and apply for a smaller emergency loan. Anything you can do to mitigate the amount of interest you will be repaying will put you in a stronger position.