What is Emergency Cash Assistance?
Emergencies are unpredictable and the resulting financial burden can be overwhelming. That's where emergency cash assistance comes in to help. As the name implies, it helps with mitigating the financial hurdles brought by an unforeseen crisis. Whether a natural disaster, accident or job loss, emergency cash assistance helps you navigate difficult times.
Where to Get Emergency Cash Assistance
Emergency cash assistance is often rendered through different programs, each specifically tailored to meet particular needs. Unlike loans, emergency cash assistance usually does not need to be repaid. Some of these programs include:
Government Programs
The government provides financial assistance to people during emergencies in the form of grants, subsidies, payment of medical bills, unemployment benefits and more. These government programs also help reduce the cost of housing and feeding needs to make them more affordable. Some of these programs include:
- Cash-for-work programs.
- Temporary cash assistance.
- Medical assistance programs.
Nonprofit Organizations
Different eligibility requirements and modes of operations apply to different organizations offering cash assistance. Their end game remains putting cash in the hands of those who need it the most. These organizations offer trust funds and grants to people in critical need. Some of these nonprofit organizations are:
- Modest Needs.
- Adult Emergency Financial Assistance Grant.
- Impact Charitable.
- Army Emergency Relief.
- United Way’s 2-1-1.
- International Federation of Red Cross and Red Crescent Societies.
- SFRF Emergency Financial Assistance Grant.
Finding an organization that matches your specific needs is the best way to receive help.
Credit Union
This is, perhaps, the only program that requires you to be a member to qualify for emergency cash assistance. They are also mostly in the form of payback loans. If, for example, you lose your credit card and require liquid cash, your credit union might offer an emergency cash disbursement (ECD). Here are some credit union groups in the United States that offer cash assistance
How to get Emergency Cash Assistance
Depending on which cash assistance program you decide to use, applying for emergency aid is typically simple and straightforward. Here are five major steps to take:
- Step 1. The first step to take in any case is to analyze your situation and decide on which programs best suit your needs. Whatever your emergency is, there is a cash assistance program available for you.
- Step 2. The next thing to do is to gather all necessary documents and proof of emergency. These might include identity cards, social security numbers, contract termination letters, medical reports or even news reports.
- Step 3. Now that step two is complete, you need to contact the agency to which you’re applying. This enables you to know your options and their eligibility criteria. You will then be provided with an application form.
- Step 4. This is where you fill out the application form and file it with all the required documents. Some agencies might require you to be interviewed before deciding to consider your application.
- Step 5. After fulfilling all necessary conditions, you to wait while your application is being reviewed. This process usually doesn't take a lot of time but varies from agency to agency.
Pros and Cons of Emergency Cash Assistance
When considering whether or not to apply for emergency cash assistance, you must weigh the pros and cons. Oftentimes, the pros far outweigh the cons. Depending on why you need it, the same might not apply in every situation. Here are the pros and cons to evaluate before getting emergency cash assistance.
Pros
- Easy to get. Cash assistance is often easier to get because it's cheaper than other forms of assistance.
- Flexible usage. You're able to choose exactly what you need to buy or spend the money on.
- Quick disbursement. Cash assistance is usually quickly disbursed since it is needed during an emergency.
- Privacy. Beneficiaries of emergency cash assistance still reserve their privacy. This reduces stigma.
Cons
- Usage. They can be misused as there is no certain way of monitoring how the money is spent.
- Availability. It's not available to everyone.
- Inflation. This is a major concern with emergency cash assistance as inflation can affect the value of money, thereby reducing your purchasing power.