How you get $10,000 cash depends on your assets and credit history. These tips on obtaining money start with a big asset, and end with generous family members…
Here’s what Jason says:
“My wife and I don’t want to refinance our home mortgage, but we need $10,000 cash to pay off credit card debt due to a medical health problem I have. Do you think it’s better to refinance a home mortgage to get that $10,000, or borrow money from my parents? They’re willing to offer it, I’m not sure I want to get into debt with them.”
He needs the $10,000 to consolidate his debts, which is probably better in the long run because the interest will bury him. But he faces the short-term (and possibly long-term) pain of trying to find ways to obtain cash fast!
Here are a few ideas…
Refinance your home mortgage
Jason asked his question on 7 Tips for Refinancing a Home Mortgage Loan. There are pros and cons to refinancing your mortgage. The drawbacks to refinancing includes fees to get the loan (which can cost you more money in the long run), a longer amortization or loan period, and a bigger mortgage.
Borrow from a money lender
Before you borrow money from a money lender, it’s good to get a free debt settlement consultation. Money lenders typically lend smaller amounts of money for short amounts of time at high interests rates. If you know without a doubt you can pay back the loan when it’s due, and if your reasons getting the $10,000 in cash outweigh your reasons for avoiding money lenders like the plague, then it may be worth considering. It’s not the best way to get money, though.
Apply for a bank loan to consolidate your debts
Here’s what the credit counsellors at My Money Coach say:
“You can see if your bank or credit union is able to provide you with a debt consolidation loan. Banks and credit unions are typically only willing to lend people around 10% of their net worth (your assets minus your debts) on an unsecured basis. So if you ask your bank for a debt consolidation loan of $20,000, but your net worth is only $20,000, they will probably decline your request. They may be able to give you a $2,000 unsecured loan (10% of your net worth), but not much more. When the economy is doing really well and jobs are easy to find, some banks may lend people much larger amounts of money without requiring any security, but this is more of an exception rather than the norm.” – from How to Consolidate Your Debts in Canada.
Talk to an investor
Do you have a viable business – or a no-fail business idea? If you can attract financial backers, then you’ll get $10,000 in cash pretty quickly. Read Tips From the Dragons’ Den – How to Attract Business Investors for ideas on how to talk to potential financial backers.
Adopt a long-term perspective
Accumulating money is like losing weight: the long, slow approach is most effective! Instead of wracking your brains trying to get $10,000 cash, can you focus on achieving your financial goals over a long period of time? This may involve going back to school (which unfortunately costs money), finding a better job, or talking to a debt or financial counsellor about your specific financial situation.
Keep your eye on the classified ads
Several years ago, I saw a classified advertisement that invited people to write in and explain why they needed a certain sum of money. I can’t remember how much money it was – I think it was over $10,000 cash. Maybe it was a scam, maybe not…but I’ve never forgotten the importance of reading the classified ads! You never know what opportunities lie therein.
Ask your parents
Even if your parents can afford to loan you $10,000 you need to think twice about asking them. In Should You Borrow Money From Your Parents? When to Say No, I offer tips to a reader whose rich mom supported him for years – and he’s in a lot of financial hot water now.
The bottom line is that there is no easy way to get $10,000 cash. Every option has its drawbacks; you need to figure out which option is least painful for you. For some, refinancing a home mortgage makes the most sense – and other people think asking mom and dad for the cash is the safest option.
What do you think?