Financing Funeral Services
The death of a loved one is one of the most emotionally-challenging experiences one can go through. On top of that, paying for the burial can be financially stressful. Nonetheless, it's essential to keep in mind that you have options not only regarding the after-life arrangements but also in terms of financial resources. Trying to figure out how to pay for the funeral can be overwhelming, especially when you are grieving. But that shouldn't affect your personal expenses to the point you cannot pay your bills on time. To ease the financial burden of burying a loved one, see below a few solutions:
1. Apply for a payday loan
A payday loan is a quick financial solution that you can take in an emergency. For instance, if you need up to $1,000 to pay for unexpected expenses during burial preparations, a direct lender will typically deposit your loan within one business day. The amount of money you borrow will depend on how much you make and spend. These short-term advances are to be paid off from your next paycheck.
The only issues may occur when you cannot repay a payday loan on time, and more fees are added to the amount you have to pay off. Many families resort to payday cash advances during hard times to help them cope with the extra expenses. Even when the deceased set some money aside for their funeral, there is usually a steady 20% increase in funeral products and services over time.
2. Apply for a personal loan
Personal loans offer an alternative way to pay for the after-life arrangements of a loved one, as well as travel and accommodation costs for out-of-town family members. A loan can even help with other expenses such as flowers and catering to make it a more memorable occasion. You can apply for a fixed-rate personal loan with a local bank or credit union.
The amount you can take depends on your credit score and your ability to repay the lender in fixed monthly installments. If you cannot get an unsecured loan, you may consider secured personal loans or ask someone close to be your cosigner. Besides low-interest rates, credit unions usually provide financial counseling services. If you are a member, you can take full advantage of a consultation with an expert in the field.
3. Use money from your retirement fund
The most common way to pay for a funeral is with savings or a loan from a friend or relative. But if you don't have the money saved for it, and you can't borrow it from family or friends, your options are limited. You can pay for the funeral by using money from your retirement fund. The money comes out of your pocket tax-free but without the benefit of any future tax-deferred growth. If you're younger than 59, the funds will be subject to regular income taxes. Also, be aware that some employers withhold extra taxes when employees withdraw retirement funds before 59.
4. Reach out to a government-assisted program
There are government-assisted programs that provide financial aid to low-income families to help them pay for the funeral of a loved one. There is no shame in asking for help if you fit in the category. The first program is called the Funeral Grant Program, and it is funded by the Federal Trade Commission (FTC). The FTC provides grants for up to $700 for those who have exhausted all other available resources. The second program is known as the Presumptive Eligibility Program. It will pay up to $1,100 towards funeral expenses if you meet specific financial requirements. Both programs follow federal guidelines for determining eligibility.