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Should You Use Emergency Cash Loans to Help with Inflation?

by Staff

With the way prices are rising these days, balancing the budget can be stressful. For some, failing to make ends meet constitutes a pretty major emergency. But is this crisis worthy of an online emergency loan? Keep reading to find out everything you need to know about this kind of cash advance.

 

What Are Emergency Cash Loans?

An emergency loan is a short-term personal loan that delivers money in your hand fast. It’s all thanks to a mostly digital process that speeds through applications, so you can find out if you qualify soon after you hit ‘send’ online.

To make things even faster, you can find emergency cash loans online that moonlight as direct deposit loans. If you’re approved, your lender will send funds directly to your bank account once everything goes through.

By cutting down on the time it takes to fill out applications and receive your funds, emergency cash advances suit urgent situations when you can’t afford to wait.

 

What Are Emergency Loans Recommended For? 

Despite their name, emergency loans are designed for specific kinds of crises. The hallmarks of an expense that might require these advances are as follows:

  • They’re unpredictable: You can’t see these expenses coming.
  • They’re non-recurring: These expenses won’t become a regular part of your budget. In other words, you won’t pay them on a weekly or monthly basis.
  • They’re minor: Most emergency cash advances are small, so you can’t expect them to pay a five-figure bill.
  • You don’t have other options: You can negotiate or safely delay some expenses, which gives you a chance to lower your bill or save what you need. These emergency advances are for expenses that don’t have that flexibility.

What About Borrowing to Offset Inflation?

Inflation to the rules above it fails the emergency loan test. Why? Because inflation affects the cost of your regular (or expected) bills, which are predictable and recurring.

But if that isn’t clear, here’s an example of when an emergency loan might work and when it won’t.

Let’s say a gigantic hailstone shatters the windshield of the car you need to get to work every day. If you don’t have savings or room on your credit card, taking out an emergency loan may be the only way you repair your car and get back to work.

Now, let’s switch gears to gasoline prices, something that’s a lot more expensive nowadays thanks to inflation and current events. Despite being surprised by the number at the pumps, borrowing isn’t the answer. That’s because fuel is a normal part of a driver’s budget, so you’ll purchase it often.

 

How Can You Handle Inflation without Borrowing?

So, you can’t use emergency loans to deal with inflation. That doesn’t make your budget situation any less of an emergency. If you’re struggling to make ends meet, check out these three basic tips.

  • Cut Costs: In tough times, cutting back your budget is one of the wisest money moves there is. Reduce non-essential spending to prioritize bills, savings, and debt payments. It might be hard, but it won’t be permanent. Inflation may be on a downward trend.
  • Negotiate Essentials: Talk to creditors, utility providers, and other companies to see what you can do to reduce what you owe or rearrange your payment plans.
  • Earn More: Sometimes, the only way to get your budget back into the black is by increasing your income. Consider a part-time job or side hustle if you have the time.

 

Bottom Line:

Emergency loans are for unexpected, non-recurring expenses like a surprise auto repair. Keep this in mind the next time you consider borrowing money.

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