Top 5 Dangerous Fast Cash Options
We all want or may need to obtain some quick cash at some point in our lives. There are many ways to do that, but also many ways to do it dangerously, which is the trap most people fall into.
Many of us have fallen prey to bad ideas in order to obtain some desperately needed cash. Most of the time people fall victim to bad deals because they have no idea as to where to go.
This article is going to cover the top five dangerous ways to get fast cash.
One tempting but potentially bad way to obtain some fast cash is to take out a reverse mortgage on your home. The problem is, this only works if you own your home and if you are younger than 62 you cannot qualify as there is a age restriction. If you do qualify, the mortgage won’t allow you to pull out as much equity of that of a regular mortgage refinance in many cases. In addition, the younger you are, the less money you will be able to borrow from the reverse mortgage. Lastly, this form of getting cash comes with high fees.
Credit Card Cash Advances
It may be tempting to just take cash off your credit card when you need it, but this can also be a very dangerous thing to do. Taking a cash advance means you will start by paying a 4% fee just to receive the advance. Then when it comes time to pay back the cash advance if you don’t pay back the full amount in one shot, interest rates on the payment can be as much as 20 to 30%.
Liquidate your 401k Plan
We all work hard to make our golden years as financially comfortable as possible. Tapping into this nest egg early can really effect future living standards. The government knows this and this is one of the reasons they make it counterproductive or difficult to access these funds i.e tax and fees. This should be one of your last options for obtaining cash.
Hands down, the absolute worst way to get cash fast is to get a payday loan, especially if you don’t have the means to make the repayment. These loans are designed for high risk borrowers who are often people whom are desperate for money and have no other way to get it. They almost always result in fees and high interest rates that the average borrower ends up in a worst off position.