When you’re strapped for cash and don’t have an emergency fund it can feel like there’s nowhere to turn. There are actually a number of options available when you find yourself in this type of crisis. While the best solution is to build emergency savings for these situations, it’s not always the most realistic. The following options can help you in a pinch but the pros and cons should carefully be considered beforehand.

Personal Loan

• Personal loans are one of many types of loans you can borrow from a bank. These loans are typically general purpose loans that you can use at your discretion for anything you wish. Personal loans are most often treated as a fixed-term loan. Regular payments are made over a set period of time and end when the loan is fully paid. The better your credit score the better interest rate you will qualify for. As with any loan, it's crucial to determine the monthly payments and the total cost of the loan over time before accepting the loan. Something many people are unaware of is that taking out a personal loan can actually help you build your credit and improve your score.

• Credit Card advances are ways to get money quickly and can be dispersed from an ATM, bank withdrawal or check. This advance has to be paid back and can be quite expensive. Be aware that you will likely be charged a cash advance fee by your card issuer. Similar to a short-term loan, a credit advance is a fast remedy when charging is not an option but should only be used in extreme emergencies.

• If you have invested in a 401(k) or IRA you can consider taking a loan out from one of these accounts. This means you would borrow a portion of the money in your account and repay that amount back with interest to your own account. The interest rates are normally low but often times you are required to pay back the loan in a certain window of time to prevent penalties.

P2P Lending

• Offering another way to borrow money, Peer-to-Peer lending has become a viable alternative to traditional bank loans. These companies generally cut out the middle man (banks) between lenders and borrowers and typically operate online. Thus, P2P Lending is a practice running with lower overhead and can provide more affordable loan services than traditional financial institutions. Through these simple online platforms, you can easily connect with a lender, find a loan with low interest rates and receive quick approval for funds.

Home Equity Loan

• Another potential source of funds is taking out a home equity loan. This type of loan allows you to borrow against your home’s value. A home equity loan can be easier to qualify for as they are secured by your house. They also provide access to large amounts of money that can be used for whatever you want. Be mindful that you risk foreclosure if you don't pay the loan back. It's imperative to consider this decision carefully.

Final Thoughts

In summary, while these solutions can help in dire circumstances, they often come at a big price. It is best to consider all other options before using these methods. It’s also important to take a careful look at your finances and do some fine-tuning in order to prevent having to rely on these funding sources in the future.