Support A Family Member In Financial Crisis Financial security has become more important than ever in today’s world. With uncertainty surrounding lockdowns and an ever-changing economic climate, nothing is guaranteed. There are ways to get through the rough patches and generate extra income when you need it. Here are tips on how to help a family member struggling financially or you can say five ways to help you and your family members get the money you need.
Many people seek help from their loved ones and family members during difficult times. When people lose their jobs abruptly or are struck with big medical expenditures, they commonly suffer financial challenges. Everyone knows how COVID-19 impacted household family income. As a result of a loved one’s issues, many well-intentioned family members have been swept into the financial crisis.
How to Help a Family Member Struggling Financially?
The most important step is to sit down with your loved one and ask them just what help they require to get out of their current situation. After that, you’ll have a better idea of what kind of information and help they require. You can consider the below tips on how to help a family member struggling financially.
Consider Leveraging Your Home Equity
There are two tips that I use when my parents are struggling financially about leveraging your home equity. The first option is to get a reverse mortgage on your home. A reverse mortgage allows you to receive payments based on the equity of your home. This will continue every month for as long as you live in that home.
Eventually, the borrower or their heirs will have to pay off that loan but not until they are no longer living in the home. Always check out reverse mortgage reviews before you work with a company.
Another option is to get a line of credit based on your home’s equity. Getting a line of credit on your home equity will give you a revolving line of credit based on a predetermined number. You can draw from this fund as much or as little as you need and you will only be required to pay back what you have borrowed instead of the full amount of credit allotted to you.
Sign Up for Payment Plan Cards
Payment plan cards allow you to make purchases that you can pay off over time as tips on how to help a family member struggling financially. These cards cover everyday purchases and each has a different payment plan.
Most allow you to pay off your purchases in four or more installments. You can avoid being charged interest with some plans if you buy through a retailer that they are partnered with.
Some of the most common payment plan cards include Sezzle, Klarna, and Afterpay. They each have apps that you can download that will allow you to track your purchases, find partnered retailers, and make payments. You’ll typically be making payments every other week or once a month. You could have 3 months or up to 48 months to pay off the total amount of your purchase depending on which payment plan you choose.
Get a Personal Loan
Personal loans are a one-time payment that you can receive directly to your bank account. This is again useful when you are searching for how to help a friend struggling financially or how to help a family member struggling financially.
They always accrue interest and you will be paying it off in monthly installments for the duration of its term. You can use your loan for major purchases such as car payments, wedding expenses, home repairs, etc.
Applying for a personal loan is relatively easy and there are hundreds of opportunities to be found online. However, it’s important to do your research before applying for a loan because if you don’t get approved then you could receive a hard inquiry which impacts your credit score. Going through your bank may be the safest and quickest option.
Become a Ridesharing Driver
Services such as Uber and Lyft are always hiring new drivers. You can pick your hours through these services and work as much or as little as you want. All you need to do is visit their website or download their apps to fill out the application.
As long as you have a valid driver’s license along with a registered and insured vehicle then this can be a lucrative way of getting some extra income. This is one of the best and simplest tips you can give when helping family members financially or relatives struggling financially.
You’ll want to keep in mind that being a rideshare driver does have some disadvantages. This will put a lot of extra wear and tear on your car. That means you will have to pay for general upkeep more frequently including oil changes and gas. Being a rideshare driver is considered an independent contractor position so it’s necessary to set some money aside for income taxes as well.
Become a Freelancer
You can take any hobby or skills you’ve developed in your day job and use them to freelance in your spare time. Writers, programmers, and developers are always in demand and can make good money freelancing around their day jobs.
If those aren’t your skills then don’t worry, you can still make extra money freelancing. There was a time when I needed financial help immediately and this creative way has helped me a lot.
Everyone has a marketable skill that they can offer. Perhaps you’re excellent at organizing– you could offer your services to someone who’s moving and needs help getting their belongings in order. Websites like Fiverr and Upwork are good places to start looking into your freelancing journey.
Freelancers are also considered independent contractors so you will need to keep track of your earnings and put some money aside for taxes. Work isn’t guaranteed as a freelancer so you will need to spend some time building up a profile on these sights. Expect to spend some time pitching for jobs until you become recognized as a skilled worker in your field.
Money and family members don’t always go well together. Your loved ones may, nevertheless, require your financial assistance in bad times or in the event of an unexpected emergency. Consider what you can and cannot afford to accomplish before agreeing to help. Remember that there are meaningful, creative ways and tips on how to help a family member struggling financially even if you have little resources.