What Is a Financial Emergency?

 
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What Is a Financial Emergency?

There are many points throughout life when finances are frustrating and/or stressful. For some, it can feel like it is constantly like that. But there are specific times when it is far more difficult than it is on any other given day. These particularly anxiety-inducing times are usually considered financial emergencies and are the exact reason that individuals create emergency funds which they set aside in a separate savings account. Many financially savvy folks build an emergency fund into their budget until they get around six months’ worth of living expenses into one account.

However, not everyone has the luxury of extra income which they can invest in an emergency fund. When you live paycheck to paycheck, you are worrying constantly whether or not you will be able to cover your bills next month. You likely don’t have any leftover cash to put aside for an emergency, however much you would like to do just that.

That leaves the question of how you might be able to obtain some funding to get through a financial emergency without any money saved. Going through the long and arduous application process for a traditional personal loan from a bank could take far longer than the amount of time you have to get the money you need. Plus, you could wait to hear back from the bank only to be denied because of your credit score. You would be right back where you started all because you were judged by a single number. That is not something that seems fair in the slightest.

Title Loans for a Financial Emergency

An auto title loan could be the perfect solution for your particular predicament. Auto title loans are a staple in the non-traditional lending industry as they allow customers to borrow money using their car as collateral. LoanMart can approve you for an auto title loan based on factors such as the current street value in your car and your ability to repay the loan rather than solely based on your credit score. Because of these differentiating factors, LoanMart may be able to approve you far faster than a traditional bank would for a personal loan and get you the money you need to take care of your financial emergency as fast as the very next business day after approval. Additionally, we can approve you for an auto title loan even if you have a less-than-perfect credit score. We do check your credit report but only to ensure that you are not currently in an active bankruptcy or undergoing credit counseling, not to judge you by  using a mere number.

What Qualifies as a Financial Emergency

It is important to ask yourself before you borrow a large chunk of money whether your situation actually qualifies as a financial emergency. Getting a loan is a very big financial commitment that should not be taken up lightly. Here is a list, although not an exhaustive one, with a few examples of what qualifies for a financial emergency and what doesn’t:

What Isn’t a Financial Emergency

  • You want to go on an extravagant holiday vacation because you haven’t had a time off in a while.
  • You want to buy a fancy and expensive gift for a friend’s birthday or wedding.
  • You need to buy the perfect outfit for a certain event to make your ex jealous.

While the things listed above aren’t necessarily bad in and of themselves, they are definitely not what you can call serious financial emergencies by any means.

What Is a Financial Emergency

  • You cannot cover typical monthly expenses like your mortgage/rent or your utility bills.
  • You need to pay for major repairs on your car or your home which will hinder your transportation or cannot be ignored.
  • Unexpected medical or dental expenses that need to be paid as soon as possible.
  • The expenses of a sudden move including the cost of moving trucks and a down payment.
  • Funeral expenses. There is enough struggle after the death of a loved one without financial stress on top of it all.
  • A job loss which leads to a sudden need for supplementary income in order to stay on your feet.
  • Marriage or divorce. With marriage, a financial emergency can occur when there is a combination of debt. With divorce, the legal expenses can be crippling without extra funding.
  • A natural disaster has come your way and caused major damages to your possessions and home that you need to repair or replace various items.
  • You are in the process of avoiding bankruptcy or recovering from bankruptcy.

All the scenarios listed above are actual and critical financial emergencies that warrant borrowing funds in order to cope. At LoanMart, we are dedicated to coming alongside of you in these critical times by offering you financial assistance.

No Prepayment Penalties with LoanMart

If your financial emergency somehow clears up far sooner than you anticipated and no longer want to be stuck in a loan contract, then you can pay off your loan as quickly as you would like since LoanMart charges absolutely no prepayment penalties. If you choose to pay off your loan early, then you will likely avoid quite a lot of accruement of interest thereby saving substantially on your original payment plan. At LoanMart, we have always constructed our loans around the customers’ needs so that they will always work best for you. We wish to see you succeed, not only in the repayment of your loan but, also, in cultivating a financially prosperous future for yourself and/or your family.

Fix Your Financial Emergency with LoanMart

Here at LoanMart, we have been able to help thousands upon thousands of individuals with their financial emergencies over the last 15 years. We can help you too! To find out if you might qualify for an auto title loan for a financial emergency with LoanMart is to apply now or give us a call. We would love to help you get through this tough time one step at a time.

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