What if you need money now
The number of Americans who filed for unemployment for the first time rose to 412,000 for the week ending June 12. according to the US Department of Labor – a number much higher than predicted by economists at Dow Jones. Initial jobless claims are at their highest in a month and well above the four-week moving average of 395,000.
These unexpectedly high unemployment claims come at a time when there is a nationwide labor shortage, with many companies struggling to fill positions. Some economists speculate that the additional $ 300 in unemployment benefits offered due to the coronavirus pandemic has discouraged people from returning to work. More than half of the states have planned to cut additional federal benefits before the September 6 expiration date in order to get Americans back into the workforce.
Although there are indicators that the economy is returning to pre-pandemic normalcy, many Americans are still struggling to make ends meet with rising consumer prices and low wages.
What if you need money now
You can consider making a quick buck by selling unused items online or joining a rideshare service like Uber, but these methods tend to be a lot of work for little profit. Otherwise, consider the following options if you need the cash now:
- Borrow a low rate loan
- Consolidate credit card debt
- Refinance student loans
If you need cash to get by, consider refinancing your existing debt or looking for personal loans to free up money in your budget. You might even pay less interest in the long run. You can shop for the lowest interest rate on a variety of financial products like these at Credible’s online marketplace.
Borrow a low interest loan
There are a variety of secured loan options, such as 401 (k) loans which allow you to borrow against your retirement fund or home equity loans which allow you to borrow against the money you have invested in. your house. However, not everyone has access to guaranteed funds like these.
Consider borrowing a personal loan, which is an unsecured loan that doesn’t require you to put any asset as collateral. Personal loan interest rates can range from around 4% to 36%, and the lowest rates are reserved for borrowers with good credit – defined as a credit score of 670 or higher. using the FICO scoring model.
The best way to get a low interest rate on a personal loan is to shop around and compare the offers. You can get prequalified from multiple lenders immediately without affecting your credit score by using Credible Market.
Consolidate your credit card debt to lower your monthly payments
High interest credit card debt can eat into your budget and make it harder to pay other bills like a mortgage or car loan. You may be able to lower your monthly payments and save money on interest by paying off your credit card debt with a personal loan.
For example, let’s say you have $ 8,000 in credit card debt with an interest rate of 15.91%, the current average rate, according to the Federal Reserve. Your monthly payment would be $ 320. If you had taken out a five-year personal loan for the same amount at an average interest rate of 9.46%, you could reduce your monthly payment to $ 168.
Use Credible’s personal loan calculator to see how much you could save on your monthly payments with a personal loan.
Refinance your private student loans
Have you taken out private student loans to supplement your federal student loans? You may be eligible for a lower interest rate on your private student loan debt since the interest rates are at historic lows. Keep in mind that refinancing federal student loans is not recommended as you would lose federal protections like an income-based repayment plan or forbearance.
With a lower interest rate on private student loans, you can lower your monthly payments and save money on long-term interest. Shop around for student loan refinancing rates on Credible to make sure you get the lowest interest rate for your unique situation.
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