Applying for a hardship loan is usually easy. All you have to do is document your lack of funds and financial emergency. The difficult part is finding a party willing to give you money fast. The good news is that there are parties willing to assist you. You just have to be willing to pay the price for it.
- Skill level:
Ask your employer for help. Most companies have funds set up for employees who are dealing with a financial hardship. You human resources officer should be able to help you set it up. Understand that your paycheck will be deducted over a long period of time until the loan is paid off.
Borrow against your 401(k). Many people do this when they want a down payment for a house. However, you can also do it if you find yourself in a financial emergency. The main downfall of this type of hardship loan is that you will have to pay taxes on the money you withdraw.
Get a payday loan. Payday loans are really high-interest hardship loans. They require minimal paperwork and only verification that you have a job. You will be required to pay back the loan with your next paycheck.
Apply for a student loan. Of course, this only works if you are a college student. However, you can get a small hardship loan or a large, long-term loan to cover your expenses. The amount you can get will be based on you and your parent’s income. The payback terms will vary according to the loan.
Seek assistance from your family. Normally, at least one family member is secure. He can help you out of any financial hardship. Just make sure you set up the terms for the loan, abide by them and pay him back.
Visit your local church. Churches offer a lot of help to the community. They can give you a hardship loan or just pay off your debt. It all depends on the amount of funds they have and what kind of situation you are in.
Rely on the help of a friend. A good friend can give you a hardship loan. Just as with a family member, you should set out the terms of the loan and be sure to pay him back.
Tips and warnings
- Analyse how you got into your financial bind, so you can avoid doing the same thing in the future.
- Don't take out more than one payday loan.
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