Does your paycheck not seem to last as long as it once did? Unfortunately, with inflation at record 40-year highs, nearly everyone is feeling the strain. From the gas pump to putting food on the table, the cost of living has definitely risen and there doesn’t appear to be any relief any time soon.
If you’ve exhausted all your financial resources and really need cash soon, then you’ve got options, including credit cards and online same-day cash advances. In this article, we’ll explain what these solutions are and how they work.
How does inflation work?
Inflation is the tendency for the price of everything to naturally rise over time. Under normal conditions, the cost of goods and services slowly increases causing these expenses to gradually go up. But when there are influences that upset the normal balance between supply and demand, the rate of these price increases can be rapid and place consumers under financial stress (such as what we’re currently experiencing).
Although there’s much debate about what has caused the current state of inflation, various contributors include:
- COVID stimulus
- Supply chain disruption
- Government intervention
It’s the job of the U.S. Federal Reserve to review the state of the economy and make adjustments that will bring inflation down to a reasonable rate.
Loan options when you need money
When price increases start to strain your finances, there are a few places you can turn to and get the cash you need:
Installment loans are short-term loans that will give you access to up to thousands of dollars at a reasonable interest rate. With these loans, you can pay back what you owe over time in fixed monthly payments, or installments. Installment loans are generally unsecured loans, meaning you don’t have to worry about putting down any collateral like a car or your home.
Credit cards can also be a good option to get fast funds. You could apply for a new card or see if they’ll increase your limit on an existing account. Many even have 0% APR promos where you won’t owe any interest for 6 to 12 months.
In addition to being able to buy more things, you’ll also usually have the opportunity to take out a credit card cash advance. This will give you the ability to indirectly use your credit card to get money for bills or anything else that you need.
A home equity line of credit, or HELOC, is a way to tap into the value of your home. You can spend your equity as needed and won’t be required to pay back the principal for 10 years. Plus, given that home values across the nation are up almost 20 percent since 2021, you might have more equity than you think.
If you just need a few hundred dollars to hold you over until payday, a cash advance may be a great option. With these small-dollar loans, you can repay what you owe in two to four weeks when you get your next paycheck. You can apply for cash advances online and if approved, the lender will often deposit the funds in your account the same day.
The bottom line
Many factors have driven inflation to 40-year highs. If inflation is causing you financial strain, you can find access to the money you need through strategies like getting a credit card, taking out a personal loan, or applying for a HELOC. Although it may only be temporary relief, these options might be enough to get you by without getting too far into debt.
Name: Michael Bertini
Email: [email protected]
Job Title: Consultant
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