If your savings have run dry and you’re hit with an unexpected emergency, there are basically only two real options you have: sell something of a value or get a loan. Both of these primary options break down into an array of other choices with the category, but at the core of the situation those are the only two options you have available to you.
So which is a smarter option for your individual situation? For example, if you have a fairly large expense to cover, would it be better to sell off something of substantial value like your vehicle, or get an installment loan and repay it over the course of several months? That’s the question we’re here to answer today.
The main advantage of selling your car vs. taking out a loan is that you won’t have to worry about incurring any debt, the expense of the interest, or making a monthly payment on a loan. In certain way, selling a car is a more straightforward proposition than a loan: once money has changed hands the deal is done and you don’t have to worry about it any more.
The main downside of selling your car may seem obvious, but if you sell your car, you no longer have it. This means your access to transportation is suddenly going to be greatly reduced. While some of us are fortunate enough to work close to home, the vast majority of us have to commute. And if you sell your car, your ability to earn an income could be impacted if you’re constantly getting to work late or even miss days.
Selling your car also has the distinct disadvantage of taking a lot of time. You have to first find a buyer willing to pay the price you’re asking, and then go through the process of transferring the title, cancelling your insurance and spending hours at the DMV. Especially during an emergency, this is a hassle you don’t need.
One of the major advantages of a signature installment loan is just how fast you can be approved for one. Often you can walk out of a provider location with money in hand in as little as a half hour. Amounts are available up to $3,000, which is enough to cover a fairly substantial cash emergency and more than you’d likely get from selling your car.
The one major downside to a signature installment loan is that how much you can receive is usually based on a combination of your current income and credit score. If your credit score is a little rocky you may not qualify for the top amount available. Still, you never know if you don’t try, and you’ll more than likely be able to get close to what you need.
Ultimately, you’ll have to decide what is the right option for your situation. But what we can do is urge you to do your research and if you decide to find out what an installment loan could do for you, find reputable provider serving your area. A good lender will look at both sides of your problem, help you come up with a plan, and work out a payment plan that it suited to your individual needs.