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Before deciding on an emergency loan, the ideal situation in place is that the individual has a stash of money reserved for a rainy day. Although having cash tucked away is ideal, many do not have this luxury and therefore require another means when an emergency arises. There are still some other options to take before saying “yes” to that immediate lump-sum of cash: borrow from a friend or family; if you can appeal to their empathetic side, by explaining that you have recently suffered a hardship, your friend or family member is far more likely to want to help. Do not feel awful for requesting a favor, the tables could just as easily be turned: emergencies happen to everyone.

Suppose the previous requests do not work, then it is time to consider the variety of methods for choosing an emergency loan: a home equity loan lets the owner borrow money using the house as collateral. For many that suffer bad credit may want to consider this as the first option because there is already money tied up in a property, so a lender is likely to offer this with few hesitations; it is not an equity line of credit—rather it is a second mortgage.

The second mortgage merely states that in case an individual defaults, the first mortgage needs to be paid before the second one can be paid. Why would anyone do this? For those that need a lot of money up-front, perhaps there are no credit cards available, then this is the best option. The lender finds a second mortgage to be safe, so a larger loan may be available. Ideally a second mortgage is used for home repair, adding value, purchasing another home, but oftentimes having available cash is the main reason. Keep in mind that interest is relatively high on a second mortgage, but far lower than credit card interest. Perhaps, seek a second mortgage from the same institution as your first, this way there may be a break on fees.

Besides taking on a second mortgage as an option for immediate emergency cash, payday and cash advance loans are another option. These loans are short-term and they usually require the borrower to pay back the loan within two weeks. Moreover, the interest is roughly 25%, however it is possible to extend the loan by paying the minimum, but this of course must be worked out with the lender. The lenders do not call it interest—but a loan fee—It’s the same thing. Typically, borrowers for the first time can usually only receive $600 up-front, however if previous loans have gone according to plan then future payday loans can be more. After an individual has been approved for a payday loan, the funds will avail themselves in the borrower’s bank account within twenty-four hours. The borrower will then submit a detailed request stating the exact amount to be paid and a plan in which to carry it out.

Upon the due-date, funds will automatically be taken from the borrower’s account, so it is imperative that the money is available as this date approaches. As long as payments resume as scheduled, more loans are available. It is vital for a borrower not to default on these loans; otherwise collection companies and court will soon follow. Keep in mind that normally these loans need to be paid pack within two weeks, so make sure that before deciding on this route that immediate repayment is mandatory. Lastly, make sure all other means for attaining money is exhausted before choosing a payday loan.