Recent events in the world have seriously affected the standard of living in the United States. 6.5% of Americans are unemployed and last year it was 14,8%. You can go the standard way — to get unemployment benefits. The maximum benefit amount is 49% of the average salary of a person and does not exceed $2,700 per month. Unfortunately, the payments only continue for six months after the loss of the job. Then you rely solely on yourself.
Most of them do not have an emergency fund to solve their problems while looking for another job temporarily. Where to look for financial assistance in a difficult situation?
One of the options for solving the problem is taking a loan. It attracts Americans with a low-interest loan provided by the bank. It is equal to 3-5% per annum of the issued amount. Low-interest rates ensures a small amount of overpayment. This allows you to get rid of the burden of your budget. During the repayment of the loan, each American accumulates rating points with the possibility of purchasing a new loan. In the United States, loans are available subject to opening an account with a special bank and obtaining a social security number. They can be obtained not only by Americans but also by residents with work permits.
Late loan repayment entails loans for bad credit history. Usually, Americans use them when they need emergency сash or if they need to relocate loan. A bad credit reputation can lead to rejection by the bank to obtain a long-term loan. Also, the availability of loans can lead to further refusals of employment. It turns out to be a vicious circle. However, emergency cash can be a rescue option.
Emergency cash has several advantages, which are discussed below. These advantages are the main ones for choosing this option.
#1 Protecting Your Family in Case of a Family Emergency
Any emergency can happen unexpectedly. For example, you urgently need money to buy medicine for a sick child. Financial assistance in the form of benefits and loans is no longer available, but this does not cancel the purchase of medicines. Additional funds in the form of emergency cash will save you.
#2 Avoiding Tax Penalties for Premature Withdrawals of Money From Retirement Accounts
Withdrawals from a retirement account before age 65 are discouraged in the United States. In case of violation, the American will have to pay not only taxes but a fine of 10%.
#3 Reducing Stress
Lack of money makes you nervous about current problems, being in a state of prolonged stress. Emergency cash will smooth out this situation, allowing you to make important purchases or pay for services. Many Americans also would be happy from getting a $2,500 loan through Fit My Money in order to feel more confident.
#4 Expanding Investment Opportunities
Emergency cash can be invested in profitable investment offers with the possibility of obtaining an additional source of income. In the event of a drop in early investments, this amount will cover the losses.
Direct Express cards are widespread in the United States. In case of its loss or intentional theft by an intruder, we can urgently use the service. The situation with the cancellation of the current card or the issue of a new one is also being considered. In this case, cash withdrawal may be required.
Emergency cash is available when the American is in overseas territory. It is enough to contact the service point of your issuing bank.
First, you need to contact the employee who provides this service. He will ask for the full name and surname, after which he will provide an access code that will need to be named. The data is entered into the system and sent for verification of its authenticity. If you pass the check, you will be provided with emergency cash.
Receiving emergency cash depends on the availability of funds on the card. If they are insufficient, you may be refused.
An additional role is played by the category to which the card is linked. The categories are divided into classic and premium. The classic category of cards provides standard services to holders. Premium services have a much higher range of services.
Emergency cash limits are no more than $ 2,000 for the classic tier and no more than $ 5,000 for the premium tier.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.