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Better Business Bureau offers best, worst ways to raise quick cash
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Published: October 27, 2008
Many people are struggling financially right now. If you need to raise some cash to help bridge the gap until your next payday or until the holidays are over, the Better Business Bureau has a list of the best and worst ways to raise quick cash.
Worst Ways
Title Loans - This is the worst way to raise cash. A title loan is secured by placing a lien on your vehicle's title. If you don't make the payments, the lender will repossess your car, leaving you in a much worse financial situation. Title loans are illegal in North Carolina, but not in South Carolina.
Advance Fee Loans - There are many unscrupulous lenders who "guarantee" they can get you a loan for an advance fee that you pay as "collateral" or "insurance" on the loan - because you have bad credit. You will be instructed to wire the advance fee to another country, usually Canada, and then you will not get the loan. It's a scam! Advance fee loans are illegal in North Carolina, but not in South Carolina.
Payday Loans - A payday loan is a short term loan with a very high interest rate that you pay back on your next payday by giving the lender a post-dated check. This starts a vicious cycle of spending your paycheck before you earn it and it takes people on average EIGHT months to break free of Payday Loans. Payday loans are illegal in NC, but not in SC.
Maxing out your credit cards - Cash advances from your credit cards are very expensive. You will not only pay interest that may approach 36%, but you will also pay cash advance fees. If you can't make the payments, you will be charged late fees. If these fees put you over your credit limit, you will be charged over limit fees.
Raiding your 401K Retirement Plan - This should be one of your last resorts for cash. Not only will you pay a 10 percent penalty for early withdrawal, you will also have to pay income tax on the money withdrawn which may be as high as 36 percent. Plus, if your retirement is invested in stocks, the stock's value may have declined and you will lose money on the sale.
Pawning Valuables - A pawn shop will usually loan you about 25 percent of what the item is worth and you have to pay that amount back with interest usually within 30 days or the pawn shop will sell the item you pawned. Never pawn something that you would hate to lose.
Best Ways
Sell stuff online or through newspaper - Those collectibles you have - beanie babies, baseball cards, stamps, coins, autographed memorabilia, Christmas villages or ornaments - may be worth some money. Check out eBay or Craigslist to see what you can sell!
Have a garage/yard sale - It's quick, easy and inexpensive to do and you will finally clean out those cluttered closets, too.
Sell your gold or silver jewelry - Don't send your jewelry to a company on the internet and expect to get a big check back because it may be a scam. Find a local buyer such as a jewelry store so you can find out how much you will get before you commit to selling.
Sell your season tickets - Sure you love going to the games, but selling your season tickets could raise big bucks fast. Plus, you will save on all those extra expenses of parking, souvenirs and concessions.
Free-lance - Are you a good writer? Web designer? Photographer? Market your skills as a free-lancer and earn some extra money on the side.
Work part-time or get a seasonal job - Do you love to shop, but can't afford to buy anything? Why not get a part-time job at your favorite store? You can make extra money and get an employee discount, too.
Get a debt consolidation loan - Consolidate your credit card bills into one lower monthly payment, but the trick is not to max out those credit cards again.
Get a home equity loan - The interest rate on home equity loans is usually low and you can use the money to renovate instead of trading up to a new house.
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