Do You Pay a Crisis Loan Back? What to Know About Grants vs. Loans

Although the specific numbers vary based on the study, a significant percentage of Americans report living paycheck to paycheck. If you aren’t able to put aside much or anything in savings, what do you do when disaster strikes? 

A genuine financial emergency doesn’t leave you with many options. If you’re scrambling for answers, let’s talk about it.

• What is a crisis loan?
• Do you have to pay back a crisis loan?
• Can the government help?
• What other options do you have?

How Can I Get Money When I’m Struggling?

Even if it doesn’t seem like you have a lot of options, there may still be places you can look for assistance.

Government Financial Relief

City, county, state, and federal assistance may all be options, depending on your specific needs and situation. For example:

• SNAP provides food assistance to low-income families that struggle to put food on the table.
• LIHEAP primarily offers help with energy bills. In some cases, it also provides funds for minor home repairs and weatherization.
• TANF has the goal of helping low-income households achieve financial security; specific programs vary by state.

Most of these programs have an application process—and there may be a backlog, resulting in delays. Ask about expedited processing if the situation is dire. They may be able to help.

What Is FEMA?

If you’ve been impacted by a natural disaster, FEMA has funds available for individual assistance and crisis grants that don’t need to be paid back. It may help you get back on your feet again, but you usually need to be in a designated disaster zone.

Local Charity Assistance

Community charitable resources vary greatly depending on who is providing help in your area, but you may be able to find assistance from churches, other religious institutions, community aid organizations, and food pantries. 

Cash assistance might be available for:

• Utility bills
• Rent or mortgage payments
• Childcare expenses
• Transportation
• Groceries

Some organizations choose to focus on assistance that doesn’t involve directly handing over cash. Many communities, for example, have at least one soup kitchen or food pantry that offers free food and groceries to anyone in need. There may be transportation assistance to get to work or medical appointments. 

Dial 211 to find resources in your area. It’s a service set up by the United Way that can connect people in need to local assistance. 

Emergency Loans for Times of Crisis

When you need money right away and are having a hard time finding other forms of assistance, an emergency loan may help you bridge the gap and stay afloat until you find another solution. 

Emergency Loans are not like most of the items we’ve covered in this post because crisis loans need to be paid back according to the terms and conditions, just like any other traditional loan product. 

That might not sound ideal if you’re already struggling—and it’s a commitment you should enter into with your eyes wide open. If you’re unable to repay the loan as agreed, you’ll be looking at consequences that may worsen your financial situation. A damaged credit score, for example, can make financial products more expensive, from loans to car insurance.

Loans can be a valuable financial product that provides a financial boost when you need it most, letting you accomplish things you wouldn’t be able to do otherwise. If your financial struggles are temporary and you’re able to afford the repayment schedule, an emergency loan might be just what you need.

Get Help by Submitting a Loan Request Through Lightning Money Loans

Lightning Money Loan works with a network of lenders and financial partners, we’ll take your single loan request and see if a lender is available to extend a loan to you, all at no cost to you. What this means is that all you need to do is fill out a quick form online instead of visiting 50+ lender websites and doing the process over and over. If we find a lender that may work for you, we’ll connect you with the lender so you can review the terms and make an educated decision. Once approved, you might be able to receive your funds as soon as the next business day. We know how important the timeline is when it comes to a financial crisis. 

Submit your emergency loan request through Lightning Money Loans today so you can start getting back on your feet.