Short on cash? You have choices

It’s common to suddenly face an unexpected expense — or simply to be severely short on cash. Ideally, you’ll be ready for such unwelcome developments with your wellstocked emergency fund. But if you don’t have an emergency fund (yet), you do have some other options, though many have significant downsides:

You can borrow money — from friends, relatives or a bank, via a personal loan. That can provide relief, but you’ll need to repay the loan. Failing to do so could damage relationships or hurt your credit rating.

You might also borrow based on any equity you have in your home, via a home equity loan or a home equity line of credit — or you might refinance your mortgage, taking out cash in the process. These strategies can offer better interest rates than other loans, but they’re secured by your home, putting your homeownership at risk.

You can address cash shortfalls by charging expenses on your credit card, but if you’re already deep in debt, that can just make a bad problem worse. It’s especially bad if your credit card is charging a high interest rate, as most do. See if you can get a 0% APR credit card instead, which offers an initial period charging 0% interest. Aim to completely pay off what you’ve charged during that period.

Retirement accounts and even life insurance policies may also offer funds you can borrow or cash out, but by doing so, you could short- change your retirement nest egg and leave less money for your heirs when you pass away.

Among the best strategies, if you can manage them, are to spend less and to earn extra money via a side gig. There are many ways to earn more income, and a little research online will help you find appealing ones. For example, you might drive for a ride-sharing service; rent out space in your home via Airbnb or a similar service; tutor students online; make and sell crafts on Etsy and elsewhere; or sell unwanted items from your closets, garage or attic.