Distress Cash

I need money! I need cash!

Are your cries for help going unanswered?

We know what it's like when things are not going your way and you need fast cash. To help, we've assembled a list of sources that can help alleviate a financial crisis. We focus only on those financing sources that are appropriate for folks that have damaged credit histories. We discuss the pros and cons of each financing source.

If you think paydays loans, pawn shops and the like are inherently bad, then this is not the site for you. You have no idea what it's like to be poor and to urgently need cash to save your life and your family.

Payday Loans

If you have a job that gives you a source of regular monthly income, you will meet the payday loan qualifications for most payday loan lenders. Payday loans are short-term loans. Interest rates and repayment schedules are typically subject to state laws. Payday loans are somewhat controversial. That's because interest rates tend to be high and there are some predatory lenders that have tarnished the industry. While payday loans should be considered a lender of last resort for most consumers, they have served as a lifeline for many. The alternatives - losing a home, declaring bankruptcy - are much worse than a high interest loan. Just be sure you pay back the loan as soon as possible so that your financing fees do not mount to a level that makes your financial troubles even worse.

Legal Funding

If you are involved in a lawsuit, legal funding can offer a fast path to solve your distress cash needs. Legal funding companies evaluate the potential of your case and will advance cash against a future settlement or judgment. There are no interest rates because legal funding is not a loan. There is no obligation to pay back the money if you do not win your case. This is a self-regulated industry that is regulated in some states. Be sure your legal funding firm is a member of the industry trade association as that ensures that they adhere to industry best practices. While there is no interest rate, there are fees and the fees are not small. However, the funding firm is taking a big risk because they lose on many of the lawsuits they bet on. If they did not charge the fees they charge, they would not stay in business.

Pawn Shops

Pawn shops are a great place to get a fast loan. You can borrow money from pawn shops by putting up something you own as collateral. After repaying the loan, you get your collateral back. If you don't pay back the loan, the pawn shop keeps your collateral and they typically sell it to cover the loan. Interest rates on the loan tend to be steep, and that is the big disadvantage of pawn shops. If the base interest rate is not steep, usually there are some fees that make the effective rate quite high. Pawnshops are regulated at the state level in the United States, so they tend to adhere to all the regulations. Still, it's a good idea to shop your items to multiple pawn shops because you may get a better deal at one than at the others.

Car Title Loans

Car title loans are small loans secured by the title on the borrower's vehicle. Regulations on car title lending vary from state to state. Typically, these loans are due back in full 30 days later. There's no credit check and only minimal income verification. That's the upside. On the downside, car title loans tend to charge high interest rates and if you don't pay, it can lead your car being repossessed and other financial problems.

Credit Card Advances

Credit card companies are happy to lend you money. In fact, you may have received some blank credit card checks from your credit card company already. As with all of the ways to get distress cash, there are some big disadvantages to cash advances from a credit card company. For starters, fees can be high. Interest rates are also typically high.

Borrowing from Life Insurance Policies

If you have a cash-value life insurance, you can borrow money from life insurance. When you borrow from a life insurance policy, you are not actually borrowing your own money. Instead, you are borrowing from your insurer. The cash value in your life insurance policy is the collateral for the loan. You can borrow up to 100% of the policy value, but be careful because there are some risky tax implications in doing this.

Live Within Your Means

We don't intend to be a preachy site. Disaster can hit any one of us at any time and throw us into financial ruin. Medical problems, a drunk driver hits you, you lose your job, your breadwinning spouse dies...it's a long list of things that can mess you up, and it's part and parcel of life that many of us will be desperate for cash at some point in time, simply because life dealt us a bad hand. But if you need cash because you are spending way more than you make or wasting your money on gambling and drugs, then you SHOULD NOT borrow more money. This is only making your problems worse. It's time to get some help. 'Nuf said.

Predatory Lending

You seem like a nice person. But don't assume that everyone else out there is nice. Predatory lenders are lenders that take advantage of poor people, desperate people, and anyone who is willing to be taken advantage of. To avoid being prey for the predatory lender, be an informed consumer. Read the fine print. Know your rights. A good place to start is the Center for Responsible Lending. Of course, there are some people who think that every pawn shop, car title lender, etc. is inherently evil. That is absolutely not the case. The vast majority of distress cash lenders HELP people in dire need, and they sleep well at night knowing that they have offered a lifeline that nobody else was willing to offer. The key for you is to be smart about what you are doing and find the best deal. Despite the popular saying, beggars CAN be choosers.

Good luck in finding fast cash!! Be sure to make a plan to get to better times. Things will turn around for the better soon.