Are you in a monetary fix because you changed your job in Canada? Well, this isn’t the end of the world, but a short term liquidity issue can stress you out and empty your pockets sooner than you expect.
After all, at times even those rainy day cash funds are not enough to cover living costs for 6 months. In such cases, do not fret; according to senior vice president David Growling, at debt consultancy MNP in Burlington, there are ways to opt for cash loans Canada to get you out of a financial fix.
So, without much ado, take a look at the various options to pick, when you’re pockets are bleeding:
- Unsecured line of credit
Much like that of a credit card, you can opt for an unsecured line of credit for your cash loans Canada. But, this one lets you borrow money up to a set-aside limit, and then you can pay once you have the money to repay. Additionally, this type of loan is unsecured; this means, your chosen financial institution is lending you cash, without using your assets.
As a result, you will only be repaying the amount of money you borrowed. Further, this type of loan comes with fast set-up, low-interest rate, and zero-fees which make this a popular option to pick from when it comes to secure cash loans Canada.
- Home Equity Line of Credit
If you are looking for a loan with a considerably lower interest rate than that of unsecured line of credit loans, then go for a home equity line of credit loans. These HELOCs are mostly backed by the equity of a house, which means that the bank is considering your property as collateral, and lending you a specific amount.
Further, these HELOCs allow customers to borrow a huge sum of money that majorly depends on the equity amount of your home. For example, let’s say you have an equity amount of $100,000 then you can get HELOCs closer to that amount.
[Note: The only con of these HELOCs is these like the unsecured credit loans have variable interest rates. So, if you make this a habit, it can turn into a debtor’s trap.]
- Tax-Free Savings Account
The next option to consider when it comes to cash loans Canada is Tax-Free Savings Account. The specialty of these accounts is people can store their emergency funds within this account without the worry of incurring taxes. In layman terms, money in such accounts grows tax-free, and the person in charge can draw up cash anytime they need.
Therefore, now that you’re without a job, you can store your emergency or rain funds in such accounts to help your money grow without the worry of depleting it soon.
- Term Loan
If your financial loss is temporary, and you’re confident that you’ll get a new job soon to fix your situation, you can opt for a term loan. This one involves repaying the money borrowed within a time span.
The interest rate for this one is similar to that of the unsecured line of credit loans.
So, there you go, with these 4 options, you can easily find suitable cash loans Canada, to get you out of this financial fix. Now, don’t worry and pick the solution most appropriate to your predicament.