How to get financial assistance for caregiving

NEED CASH NOW? 7 METHODS TO AVOID You may have seen online and TV ads promising to convert assets into fast money or driven by stores touting instant loans. These can be tempting options as

caregiving costs spiral, but be wary: They can be expensive and have long-term financial implications for you and your family. 1. CHARGING TOO MUCH — OR GETTING A CASH ADVANCE — ON CREDIT

CARDS. The average interest rate on cards is more than 17 percent if the balance isn't paid in full each month. 2. GETTING A CAR TITLE LOAN. These loans, advertised as fast cash,

generally are repayable in full plus interest in 30 days, and interest rates can be at least 300 percent annually. If the loans aren't repaid in full, the lender can take away and sell

the vehicle. 3. SEEKING OUT A PAYDAY LOAN. Widely available online and in retail stores, payday loans are easy to come by but hard to get out of, with sky-high annual interest rates and

snowballing late fees that can trap borrowers in a debt cycle. 4. TAKING OUT A PAWNSHOP LOAN. Not only will you face high interest rates often for a fraction of the real value of the item,

but some shops charge insurance and storage fees to hold the valuables. Over several months, that can drive up what is owed to potentially more than the item's worth. 5. USING BROKERS

WHO PROMISE EXTREMELY HIGH RETURNS. High returns mean high risks, and any adviser who promises high guaranteed returns is a con artist. PRO TIP: Be wary of seminars that offer free lunches

or dinners. Check out any adviser's record through your state securities administrator and the Financial Industry Regulatory Authority's BrokerCheck program. 6. SURRENDERING WHOLE

LIFE INSURANCE. While whole life policies can be a good source of emergency income, surrendering the policy means that heirs will get no benefit when the insured dies. Ask your agent about

making limited withdrawals or borrowing against the policy instead. 7. WITHDRAWING FROM AN ANNUITY. Typically, fees and taxes make withdrawing from an annuity a bad decision. The person

entitled to regular payments from an annuity can sell those payments to a factoring company, such as J.G. Wentworth, which will take a percentage called the “effective discount rate” that

can total 9 percent to 15 percent or more.