Unemployment Claims Jump Unexpected: What To Do If You Need Cash Now

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Many Americans are still struggling to make ends meet with rising consumer prices and low wages. Consider these options if you need money fast now. (iStock)

The number of Americans who registered unemployed for the first time rose to 412,000 in the week ending June 12. according to the US Department of Labor – a much higher number than the Dow Jones economists predicted. Initial jobless claims are at their highest level in a month and well above the four-week moving average of 395,000.

This unexpected Applications for high unemployment come at a time when there are labor shortages across the country and many companies are struggling to fill positions. Some economists speculate that the additional $ 300 in unemployment benefits offered due to the coronavirus pandemic deterred people from returning to work. More than half of states have planned to end the additional federal benefits before the September 6 expiration date in an attempt to get Americans back into the workplace.

Although some indicators are signaling that the economy is returning to a pre-pandemic normal, many Americans are still struggling to make ends meet with rising consumer prices and low wages.

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What to do if you need cash now

You might consider making quick money selling unused items online or joining a rideshare service like Uber, but these methods tend to be a lot of work for little money. Alternatively, if you need money now, consider the following options:

  1. Take out a low-interest loan
  2. Consolidate credit card debt
  3. Refinance Student Loans

If you need money to make ends meet, consider refinancing your existing debt or buying personal loans to free up some cash in your budget. In the long run, you can even pay less interest. You can shop on a wide variety of financial products like these at the lowest interest rate Credibleible online marketplace.

Take out a loan with a low interest rate

There are a variety of secured loan options such as: B. 401 (k) loans that you can use to borrow from your retirement fund or home equity loans that you can use to borrow from the money you have invested in your home. However, not everyone has access to secured funds like this.

Consider taking out a personal loan, which is an unsecured loan that does not require you to post any collateral. Personal loan interest rates can range from 4% to 36%, and the lowest rates are reserved for borrowers with good credit – defined as a credit score of 670 or higher using the FICO scoring model.

The best way to get a cheap interest rate on a personal loan is to shop around and compare offers. You can Get prequalified by multiple lenders all at once without compromising your creditworthiness by using Credible’s marketplace.

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Consolidate credit card debt to lower your monthly payments

High interest credit card debt can consume your budget and make it harder to pay other bills like mortgages or car loans. You may be able to lower your monthly payments and save money on interest by paying off your credit card debt with a personal loan.

For example, suppose you have $ 8,000 in credit card debt with an interest rate of 15.91%, the current average rate. according to the Federal Reserve. Your monthly payment would be $ 320. Taking out a five-year personal loan of the same amount at an average interest rate of 9.46% can bring your monthly payment down to $ 168.

Use credibles Personal loan calculator to see how much you can save on your monthly payments with a personal loan.

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Refinance your private student loans

Have you taken out private student loans as a supplement to your federal student loans? You may be able to qualify for a lower interest rate on your private student loan because of the interest rates are at an all-time low. Keep in mind that federal student loan refinancing is not advisable as it would lose you government safeguards like an income-oriented repayment plan or forbearance.

With a lower interest rate on the private student loan, you can lower your monthly payments and save money on interest rates in the long term. Look for student loan refinancing rates on Credible to Make sure you are getting the lowest interest rate for your unique situation.

Do you have a finance-related question but don’t know who to contact? Send an email to the credible money expert at [email protected] and your question could be answered by Credible in our Money Expert section.

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