Health and Money: The Impact of Financial Stress on Your Well-Being
Amidst the current health situation, one in three consumers in the US say they can’t pay bills on time or in full. Many, after all, either lost their jobs or had to take a pay cut. Such situations affect individuals across all income brackets.
Even before the pandemic, though, many folks in the US were already facing financial woes. For instance, back in 2018, 40% of US households had a hard time dealing with a sudden expense of $400.
If you’re in the same boat, it’s time to learn your options and what to do when you can’t pay your bills. We’ve rounded up the top strategies in this guide, so be sure to read on.
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Get a Side Gig
Almost eight in 10 US workers live from paycheck to paycheck. If this sounds familiar, it may be time to consider getting another job. While a lot of office jobs had to shut down, the digital workplace provides many side gig options.
Depending on your skillset, you might want to consider a freelance online gig. Remote employers are in almost every niche, from writing to marketing to accounting. If you have the ability, you may even consider setting up your blog or becoming an affiliate marketer.
Before you commit to a second job, however, be sure to figure out how much time you can spend on it first. If you still have full-time work, your side gig must be part-time. Otherwise, you might compromise not only both jobs but your health too.
Rent Out an Extra Room at Home
As of the latest count, at least 108.5 million people in the US are renters. That means that renters now account for over a third of the housing market. That also signifies a high potential for tenancy, which you might want to consider if you have an extra room.
In the long term, renting out your property is a good way to make passive income. When you get into a contract with tenants, you can use their rental payments to pay your own bills.
However, note that there are stringent laws that govern rental properties in the US. In California, for instance, there are so many rules that prohibit refusal to rent or lease. So, be sure to keep that in mind before you decide to rent out a free room to a lodger.
Sell Some of Your Assets
The average US household has a median net worth of $97,300. On the other hand, the average or mean net worth is $692,100.
In any case, your net worth is the sum of all the assets you own minus your current debts.
You can liquidate anything you own that has a resale value. Meaning, you can sell these assets or items for cash and then use the funds you raise to help cover your bills.
What you should sell depends on how dire your financial situation is. If you only need to pay the bills this month and next, you may want to sell items like electronics or appliances. If you need a lot of funds, you may need to sell assets of higher value, such as a second car or motorcycle.
Before you sell a motor vehicle, though, know that it’s possible to take a loan against a car. This may be a better option if you need more funds but would rather not sell your vehicle.
Consider an Online Loan
Traditional lenders, such as banks, do offer online applications. However, these institutions impose numerous requirements, such as having a good credit score. If you don’t meet even just this criterion, it’s unlikely for a bank to extend you credit.
Even if you do have a chance of getting approved for a bank loan, you can expect it to take a lot of time. It’s not unusual for traditional personal loans to take weeks, even months, to process.
Unfortunately, most emergencies require quick access to funds. This is especially true if you can’t pay medical bills or if you need a refill of your medications supply.
In addition, other bills, such as those for utilities or credit cards, won’t wait. You may even end up shelling out more money for late payment charges or penalties.
In this case, you might want to consider taking out a personal loan online. It depends on how much money you need, but you can apply for a short-term or a long-term loan.
The best part is that you can complete the entire application for most of these loans online. Meaning, you don’t even have to leave your home to apply (all while maintaining social distance). You can also upload the requirements via digital methods.
On that note, here are some of the loan options that you will find online.
Short-term loans are loans that require immediate repayment. A payday loan is one example of such a financial product. These come with high rates, and you’d need to repay them on your next paycheck.
Also, most payday loans offer smaller amounts, seeing as they’re short-term loans. They may be fast and convenient, but they may not be enough to cover all the bills that you need to pay.
Title loans, on the other hand, can either be short- or long-term loans. These are financial programs that utilize the title of your vehicle, hence the term. With these, you can borrow anywhere from $2,510 to $50,000, and also opt for a longer-term loan contract.
Although the title of your vehicle serves as the security for the loan, you don’t need to surrender it. You can keep driving your car even while you’re still paying off your debt.
Follow These Strategies If You Can’t Pay Bills and Need Funds ASAP
As you can see, there are several ways to address financial issues, such as if you can’t pay bills on time or in full. If it’s a recurrent problem, then you may already need to increase your income. If, however, you need a prompt solution to your money matters, then a loan may be one of your top options.
Do you have bills that you need to pay next week or perhaps even tomorrow? If so, then please know that we here at TFC Title Loans can provide you with the funds you need today. Get in touch with us now so we can wire you the money within the day.