Sudden expenses can leave you running low on funds before payday. You may be certain that your next paycheck will give you the relief you need, but you may still need funds for day-to-day expenses. Luckily, there are many options you can choose from. So, if you find yourself strapped for cash, try one or more of these tips that can help you get to payday.
Apply for an online loan
An online loan is a loan offered by lenders who operate online. With these loans, you can apply and get approved that same day, all from the comfort of home. Here are some online loan options that may be at your disposal:
- Payday loans: A payday loan is a small loan of a few hundred dollars that you’ll repay on your next payday – typically in two to four weeks.
- Installment loans: These unsecured loans give you a lump sum of money that you can repay over time in fixed monthly payments.
- Lines of credit: These loans are flexible, and let you borrow money as needed up to your credit limit.
The borrowing limit on online loans may differ based the type of loan you choose and the laws in your state, but you can normally get what you need to cover expenses for a short while. These loans are fast and easy to apply for, and some don’t require a certain credit score for borrowers to qualify.
Cut back on non-essential expenses
In some cases, you may not have run out of money altogether, but need to cut costs until your next paycheck arrives. Start by reducing or eliminating non-essential expenses. Take public transportation or see if you can carpool to work, pause or discontinue monthly streaming subscriptions, and avoid eating out. You can also shop for cheaper groceries and postpone any big purchases you were planning to make. Taking these steps can help make the money you have last longer.
Ask for an advance on your salary
If you earn a fixed monthly or bi-weekly salary, then you may be able to talk to your company about getting a small advance on your next salary. Your organization may have a policy about salary advances, so review the policy or ask someone on the HR team for support. If your request is approved, you may receive the funds you need without going into debt. But don’t forget that your next salary will be lower, so you may need to budget strictly for a couple of months.
Return a recent purchas
Sometimes, temporary cash crunches can be caused by overspending. If you recently paid for a non-essential item such as clothing, homeware, or a gadget in cash or using a debit card, you may be able to return it. Look up the item’s return window. If the return window is open, you can recover some of the money you need by simply returning the item. This cash may help tide you over until your next paycheck.
Borrow from a friend or family member
It may seem daunting to ask a friend or family member for money, but chances are, they’ll be willing to help. Close friends or family may not charge you interest on small sums and are more likely to be understanding of your personal financial circumstances. However, to preserve the relationship and minimize any disagreements, it’s advisable to return the money as soon as you can.
The bottom line
Running low on funds before your next paycheck is not the end of the world. There are steps you can take to keep your expenses on track until your next paycheck. You can choose an online loan or salary advance if you need more funds, but you may also be able to reduce financial stress by cutting back on spending or returning an unnecessary item you bought recently. Over time, it may help to create a tighter monthly budget and emergency fund to help you out in such situations.