The Coronavirus outbreak has deeply affected American jobs, leaving millions of people applying for unemployment benefits and trying to find ways to get fast cash. Nevertheless, before you turn to fast cash methods you should know their pros & cons!
Due to the Coronavirus outbreak, more than 35 million Americans had to file for unemployment benefits in the US. Many people were unprepared for this crisis and didn't save enough money to protect their personal finances.
The pandemic has had a severe impact on employment, which has led many people to start looking for alternatives to earn fast money to pay their bills.
Nevertheless, before you turn to any fast cash method you should learn about their pros and cons. Read our guide to understand how these methods work and which one suits you best.
1 File for unemployment benefits
If you have been laid off during the pandemic, you should file as soon as possible for the unemployment benefits. However, this method takes time and you should look out for scams!
Bear in mind that the bill known as the CARES Act has expanded the unemployment assistance. Due to this update, it will give laid-off workers an extra $600 a week on top of any state-level benefit they receive. Moreover, it will also offer freelancers, gig workers and self-employed people the chance of being eligible for half of state-level benefits, besides the extra $600.
2. Payday loans
If you are turning to this method to earn some fast cash, you should know this is actually not a good idea.
These kinds of loans are quick and short-term, of $500 or less, designed to be repaid in a single payment. Although this may seem interesting, you should know that payday loans come with extremely high fees and interest.
Many people who have chosen this method find themselves unable to pay off the loan because of the high-interest rates. This story usually ends up in a spiral debt, as they need to borrow more money to settle those debts.
3. Credit-card cash advance
Although this is not one of the best options, it could be considered a last resort in desperate times.
As well as payday loans, this method also comes with large interest rates and fees. Besides, it could even have an impact on your credit score!
4. Cut your spending
Take advantage of the lockdown and start analyzing which spending could be cut. For example, you won't be needing gyms or manicures for a while, and there are other many expenditures that you can revise.
You may also want to take a look at your checking account as you may be paying for apps or services that you just forgot you've signed up for. Check those subscriptions you keep paying and aren't actually using.
Another way to save money is by changing your cell phone plan. Check with your carrier if they offer a cheaper plan that covers all your needs.
5. Get a gig job
This could help you earn money fast and temporarily help you pay your bills. First, you need to check which one suits you better, you can either start to write for a blog or sell homemade clothes.
Before you apply for a gig job, make sure you choose one that doesn't involve close interaction with other people. Remember social distancing!