Your pet needs life-saving surgery. A relative passed away unexpectedly, and you need to travel for the funeral. Your car breaks down and needs to be fixed.
According to a 2021 survey from the TIAA Institute, 30% of Americans couldn’t handle an unplanned $2,000 expense within a month’s time. Black and Hispanic Americans are disproportionately affected due to long-standing systemic inequalities in the economic system, with 41% of Black Americans and 40% of Hispanic Americans saying they would “certainly not” or “probably not” be able to cover the expense, compared to 27% of white Americans.
While emergency loans can provide you with fast financing, certain loans such as payday loans or car title loans may charge extremely high interest rates and fees that could cost you more in the long run. Here’s what you need to know about the most common types of emergency loans, which ones you should avoid, and what alternatives are available.