When there is an urgent need for financial support, there are various types of loans to choose from. If the purpose of the loan is for the purchase of a car or a house, or for consolidation of existing debts, he can afford to spend time looking for various options, and choose the best of the deals.
On the other hand, if the needs are urgent and the expenses cannot be deferred, the borrower has to seek loans that can be granted instantly. There are offers of instant loans from banks and these emergency cash loans are the best sources of immediate cash. Types of Emergency loans Emergency loans are of various types.
They can be home equity loans, home equity line of credit, unsecured loans or a charge on credit card. There are offers of emergency cash from Credit Unions as well. The banks do not consider the applicants with bad credit history for the loans. Traditional emergency loans are not possible for the borrowers with poor credit history.
Payday loans are the alternatives of emergency cash unsecured loan from banks. However, there are more of disadvantages in payday loans. Though the urgent needs are satisfied as the loans are sanctioned fast and almost the same day, the borrowers are sure to aggravate their financial crisis due to payday loans.
If you are forced to obtain payday loans, you need to be very cautious. These are the emergency loans which are offered specifying that the borrowers should repay the loans on their next payday. Just with the income proof and a checking account, these emergency loans can be obtained. The borrowers need to produce postdated checks for the full loan amount and the interest or the fees for the loan.
The repayments are not as easy as obtaining the loans. Due to the highest interest rates, the borrowers of emergency loans do struggle and in fact their financial condition is much worsened after availing payday loans.
If the borrowers of emergency loans default in their payments, the consequences are much bothering. Extra payments need to be made as interest is added to the amount unpaid, and extra charges are levied for bounced checks. The borrower is offered the option to extend the term of the emergency loans, but this becomes extremely expensive.
The borrowers are left without any means to meet their regular expenses as their monthly payment is diverted to settle the emergency loan availed. This loan is more or less a trap and the borrowers do struggle to find a way out of it once trapped in the vicious cycle.
The need for rollover becomes inevitable and the borrower goes in search of another emergency personal loans for bad credit. Emergency loans can be good solution for those in need of urgent funds, but purpose is served if the borrowers can afford to make the payments as specified. Another mode of emergency loans is ‘title loans’. The applicants are offered loans instantly as in payday loans.
But these loans are offered if the applicants produce collateral for securing the loans. Failure to repay the loan within the agreed time will lead to the borrowers losing their asset submitted as security for the loan. Saving a portion of the income to be used during emergency needs can be the best form of emergency loans which may be difficult in normal times, but are sure to support in your financial crisis.