Ways to Get Cash Without Using High-Interest Credit Cards

In today's financial landscape, using high-interest credit cards for covering expenses can quickly lead to overwhelming debt. In 2024, the average credit card interest rate reached greater than 22%, making it more difficult for people to manage their balances. And in the same year, U.S. credit card debt soared past $1.14 Trillion, with the average cardholder carrying around $6,500 in debt. Fortunately, there are other options available for securing money without the steep interest rates associated with credit cards. Here are 8 alternatives to explore:

1. (Military) Personal Loans with Lower Rates

Personal loans provide a structured way to borrow money at fixed rates, often significantly lower than credit cards. Many banks offer personal loans, making them accessible to a wide range of borrowers. In the military community, these loans are also called “military personal loans, “armed forces loans,” “military loans,” “active-duty military loans,” “debt loans”, “veteran loans,” and “military spouse loans.” Regardless of the name, these loans can be used for various needs—from consolidating debt to covering unexpected expenses.

HELPFUL TIP: Always compare APRs from different lenders to ensure you are getting the best deal.

2. HELOC (Home Equity Line of Credit)

A home equity line of credit allows you to borrow against your home's equity, often at much lower rates than credit cards. Unlike a fixed loan, a HELOC is a type of revolving credit, meaning you can borrow, repay, and borrow again up to your credit limit. Also, you only pay interest on the amount that you draw. This makes it a flexible and cost-effective option for homeowners, particularly if you have a major purchase on the horizon.

3. Cash-Out Refinance Options for Homeowners

Homeowners can also leverage their property's equity through cash-out refinancing. By refinancing your mortgage for more than you owe, you can pocket the difference in cash. This option usually comes with lower interest rates compared to credit cards, making it a smart way to pay down high-interest debt. We recommend consulting with a mortgage loan officer to fully understand the implications, including any fees or adjustments to your loan term.

STATISTIC: In July 2024, mortgage rates averaged around 6.73%—significantly lower than credit card rates.

4. Bank CD Term Loans

If you have a certificate of deposit (CD)v, you can use it as collateral for a CD term loan. This secured lending option provides you with immediate cash access without incurring penalties for early withdrawal. Plus, your CD continues to earn interest while you repay the loan, meaning your savings will keep growing even as you borrow against it, allowing you to benefit from both the loan and the ongoing earnings from the CD.

5. Tax Refunds and Write-Offs

Your tax return can be another valuable source of cash. If you are expecting a refund, filing early can help you receive your money sooner. Be sure to claim all eligible deductions and credits to maximize your tax refund. Deductions for things like student loan interest, education expenses, mortgage interest, or energy-efficient home improvements can lower your tax liability.

6. Borrow from Family and Friends

Borrowing from relatives or friends can be a viable option for those who have a trusted support system. This route often comes with the advantage of no interest charge. However, it's important to approach such arrangements with transparency and clear communication to maintain relationships.

HELPFUL TIP: Consider drafting a simple agreement outlining repayment terms to avoid misunderstandings.

7. Freelance Gigs or Side Jobs

One of the best ways to get money is by exploring additional income streams. Consider side gigs, freelancing, or contract work to earn extra cash. This can provide immediate funds while helping you build a more diverse income for the future. Plus, with the gig economy thriving, you will have plenty of flexible options to fit your schedule.

8. Sell Your Unwanted Items

Decluttering your home can be a great way to reduce stress and make some extra money. Take inventory of items you no longer use or need. Selling them on sites like Facebook Marketplace, Craigslist, and eBay—or hosting a garage sale—can help you turn unused belongings into quick cash. You might be surprised at how much others are willing to pay for things you no longer want!

Financing Solutions at Armed Forces Bank

Accessing money doesn't have to lead to a cycle of debt. With a bit of planning and the right financial tools, you can control your finances in a sustainable and effective way.

If you are looking for the best financial options, check out our banking solutions at Armed Forces Bank. We offer personal loans (known as the Access Loan¹), HELOCs,² cash-out refinances³, and CD Term Loans⁴—all designed with your financial health in mind.

You can also use our online financial calculators, like the Credit Card Payoff Calculator and Home Equity Line of Credit Calculator, to help plan for a secure financial future.

Let’s take charge of our finances together!