Cash now, please!

June 30, 2009 12:55 PM

Need cash immediately (today), what's the best option?

My wife made a mistake and paid $1800 to a bill instead of $180. The payment has been applied and there's no retrieving it. This basically drained all cash from our bank account and maxed out our overdraft as well. Several checks are outstanding as well, set to hit at any minute. We are very creditworthy with a flawless payment record and have owned our home for 10 years, both cars paid off. What's my best option to handle this situation? We only need about $500 to survive until payday. Should we just go to our bank and see if we can set up a small loan to get us through to the end of the week, when the next paycheck comes in?

To answer the inevitable questions/comments: Yep, we should both be more careful about what we do. The payment made is absolutely not retrievable nor can we work out any sort of deal, that option is completely out. We do not have friends or family we could borrow from (or at least not *today*).

posted by anonymous to work & money (23 comments total)

Yes, go to your bank immediately. Go directly to the manager, do not pass tellers, and collect $1620.
posted by dirtynumbangelboy at 12:57 PM on June 30 [3 favorites]

You can always get a cash advance from your credit card(s), if you have 'em.
posted by amro at 1:02 PM on June 30

Given your credit and your paid-off cars, I don't see why your bank wouldn't give you a sub-$1,000 signature loan, if necessary with one of the cars as collateral.
posted by M.C. Lo-Carb! at 1:05 PM on June 30

My wife made a mistake and paid $1800 to a bill instead of $180. The payment has been applied and there's no retrieving it.

As a side note, you should be able to get this back eventually, but not today. Just as if they had paid you $1800 instead of $180 they would expect it back.
posted by grouse at 1:09 PM on June 30

Since you've owned your home for 10 years, you might also be able to quickly setup a home equity line. While banks have been cutting back on these to some extent lately, you don't need very much and probably have a fair bit of equity by now, so I'd bet this could work for you.

You could also consider asking your employer for a salary advance if they are willing. Payday is probably pretty soon, so they may be open to it if they can get the money to you quickly enough.
posted by zachlipton at 1:10 PM on June 30

Seconding credit card cash advance.
posted by heather-b at 1:17 PM on June 30

Your bank should give you an overdraft for this.
posted by rokusan at 1:19 PM on June 30

Open a line of credit at the bank. Much lower interest rates, no transaction fees. With documentation demonstrating what you say about your credit worthiness, it should be no problem at all. Should take you less than an hour.
posted by randomstriker at 1:22 PM on June 30

Yes, go to your bank immediately. Go directly to the manager, do not pass tellers, and collect $1620.

This is right. If you're on the East Coast, you have 40 minutes left now. Leave work early. Talk to the folks there and they'll help you out.
posted by explosion at 1:22 PM on June 30 [1 favorite]

Oh yeah, and overdraft protection is pretty cheap, too.
posted by randomstriker at 1:22 PM on June 30

Personal loan/line of credit. Don't do a CC advance unless you have no other option.
posted by infinitewindow at 1:26 PM on June 30 [1 favorite]

The CC advance loan rates are astronomical, as are the rates at quick loan store fronts. An employment counselor co-worker said the typical rate for a non-bank related, over the counter loan is 400%.
posted by ShadePlant at 2:06 PM on June 30 [1 favorite]

If you have a 401k, borrow against it. It was quick for me when faced with an unexpected $8000 tax bill, and the interest on the loan gets paid back to you.
posted by RikiTikiTavi at 2:10 PM on June 30 [1 favorite]

I hope the suggestions above will solve your immediate problem.

Your long term problem appears that although you are a homeowner and a responsible creditee, you have no emergency funds or savings. Something you should think about is rebalancing your consumption/savings patterns in the long term for the inevitable circumstance where cash is needed. Food for thought.
posted by stratastar at 2:21 PM on June 30 [1 favorite]

A line of credit sounds like a good plan. BTW - does anyone have any good info on obtaining one and what it entails?
posted by Unred at 2:26 PM on June 30

First try the conventional loan. If that won't work, there's always pawn shops or pay day advances but the interest rates are usually astronomical.
posted by bananafish at 2:27 PM on June 30

definitely try to get an advance on your next paycheck. Most places I've worked are willing to do this and the HR people are very understanding.
posted by genmonster at 2:50 PM on June 30

Don't do a CC advance unless you have no other option.

This advice is very overstated, especially in light of other people telling you to take out a loan secured by your freakin' house as another alternative. Look, credit card advance rates are high, but they are not like 1000% or anything. There will be a small percentage or flat fee to get the advance, but it will likely be around $20 on this loan amount (I'm assuming $500). And the interest rate will be high, but again only 25% or so.

So, to square yourself away until payday (which is, what, 2 weeks?), you will pay around $20 plus 1 month (tops) of 25% annual interest = 25 / 12 = about 2% = $10, for a total of $30. So, ask yourself: is this a price you're willing to pay for very easily relieving yourself of a cash crunch until you get your next paycheck?

I mean yeah credit card advances are a bad idea in general, carrying a balance on your credit card long-term is a bad idea, but it's not FALLING INTO THE HANDS OF SATAN or anything like that - it's an economic decision. This is an unfortunate situation but if you are otherwise responsible with debt, taking a credit card advance is a perfectly reasonable solution that should help you sleep well at night (and double-check your bill payments next time).

And yes, longer term you should have a bigger cash cushion for emergencies in general, including accidental overpayments.
posted by rkent at 3:03 PM on June 30 [8 favorites]

Once you get it settled, remember to thank your wife for paying the bills. A simple mistake is no big deal in the long run, but someone to share your checkbook balancing with is truly priceless.
posted by anildash at 4:47 PM on June 30 [1 favorite]

This is exactly the situation payday loan places are set up for. Yes, yes, they are the devil, prey on the poor and disadvantaged who get stuck in never-ending cycles of debt, and have astronomical interest rates, but if this is a one-time thing it shouldn't be a problem. Just read all the paperwork you sign and pay it off as soon as you can.

Some banks also let you do payday advances if you have direct deposit. I'm not sure which do, but it's worth talking to your local branch person about.
posted by calistasm at 5:05 PM on June 30

I wouldn't recommend credit card cash advance. You'll burn a big hole in your pocket with it.
posted by bbyboi at 12:42 AM on July 1

+! stratasar
posted by bbyboi at 12:45 AM on July 1

This is exactly the situation payday loan places are set up for.

This is by far the worst advice ever. Even a credit card cash advance is better than this.
posted by randomstriker at 12:02 PM on July 2 [2 favorites]