Money emergencies are always a horrible place to be in. Maybe you balanced your checkbook wrong and accidentally overdrew your bank account. Maybe an emergency arose, and you had to use money you didn’t have to remedy the problem. Whatever the reason, there are ways to recover from a money emergency.

The first thing you have to do is prioritize to get back on track. If that means letting a credit card bill go for a bit, so be it. Contact your credit card issuers and request reduced interest rates and payments. Not one, both!

If you have a car payment, call the creditor and request a payment extension. Normally I hate payment extensions, because they require a fee and you still have to make the payment at the end of the contract. But, in this case, a payment extension can allow a little breathing room to help you recover. You would likely have to pay a fee (usually about 1/4 - 1/3 the car payment amount) for the extension.

Check to see if your mortgage holder will allow an extension for a nominal fee.

Another option is with utility and telephone bills. If you aren't already on a budget plan, you can ask that the current bill (plus any previous balance you owe) be set up for a budget plan. This requires a down payment (usually 1/4 of the bill) and that all future bills (while on the back payment budget plan) be kept current. The nice thing about it is it's usually interest free, and can give you some breathing space for a month. You have to be careful though that you maintain the regular utility payments AND the budget payments in the coming month.

A quick way to get extra money is a yard sale. Clothes that no longer fit, but are in good condition, knick knacks, dishes, books, stuff you bought but no longer use, can all be sold (for a lot less than you paid granted) quickly. Put some notices up at laundromats and grocery stores around town, as well as a sign at the end of your driveway. I did this one weekend and made $200 in fast cash, and I live in a very rural area.

If you have a larger item to sell, check the local radio stations to see if they have a call in swap show on the weekends. This is a popular way to quickly convert unused and more expensive items to fast cash.

Check with your Church regarding hardship help. Local churches are one of the best places to find out what's available in the community to help those in need, or in times of emergency.

If you absolutely, positively have no other way out, and have to have some fast cash, and you have exhausted all of the above, then borrow. First ask family, then your local bank.

As a last resort you can consider what's known as a "Payday Loan." I don't recommend these types of loans for anything but extreme emergencies where cash isn't available anywhere else.

These companies basically have you send in a post-dated check, or a voided check, they then credit the loan into your bank account. However, the next payday you have, they deduct the full loan amount. Plus you have already paid a fee (deducted from the money you borrowed initially) which is usually around 8%. They also have a limit on borrowing of up to $500, which means a fee of about $35 or $40. That is steep interest to pay for a one or two week loan.

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