Dealing with Unexpected Financial Emergencies
How many times have you been hit with an unexpected financial emergency and didn’t know what to do? Maybe it was losing a job, unexpected medical expenses, an unexpected yet critical home repair, a broken down vehicle, or the like. Whatever the case, changes in your financial situation that are not expected can be truly stressful. You still need to pay the bills, your utilities need to remain on, and you still need to feed yourself and your family. How do you cope with things of this nature?
Understand the Situation
The first thing that you will need to do when you experience a financial emergency is to gain a thorough understanding of the situation. You need to have each of the facts before you do anything. This might take a bit of time, but don’t stress about it. Many times, people tend to hurry through situations like this, and as a result, they can end up making rash decisions that will only cost them more in the end. You need to know what your options are. Look for different resources. There might be more out there than you think.
One way to fill the void would be with a small loan. Now, banks and other large financial institutions do not look favorably on loans that are too small, but you might not need to borrow too much. In that case, you might want to consider one of the payday loan alternatives. You would be able to borrow as much as $1,250. These loans require only a valid social security number, a checking account that is active, and a source of income that can be verified in order to qualify. Funding can be as fast as the next day and repayment terms are flexible.
Prioritize Your Expenses
Not each of your expenses will be created equally. There will be some bills that will need to be paid before some of the others. For example, do you really need to have the cable bill paid if you aren’t able to pay the power bill and your power gets shut off? The ones that need to be right at the top of your list need to be things like food and shelter, though. Examine each of your expenses very carefully to decide which ones are the most critical. It really isn’t worth paying for something trivial if that will put you at risk of not being able to pay for a necessity.
If you find that you are having issues with medical bills, credit cards, or even your house payment, the very first thing that you need to do is call the creditor. See, it is always in their best interest to assist you with making sure that your payments get made… even if this means a lower rate of interest or possibly extending the terms. Many times, people will wait until they are desperately lagging in their payments before they contact the lenders. If you do that, the lenders will not be very willing to work with you. If you know that money will be tight and you might need a bit of assistance, go ahead and call them now so that you don’t get behind.
Find Extra Cash
In an ideal situation, you would have some money set aside for emergencies and this would be what is used for emergency financial situations. That isn’t always a possibility, though. What do you do when you have drained your savings account? You might be able to get a small loan from friends or a family member. While nobody likes having to ask for money, a small bit of assistance from a loved one or friend might be just what you need to get through the situation. Do this with caution, though, because it can easily put a strain on a relationship.
When It’s Over
When you get back on your feet after your financial emergency, you might want to think about starting a savings account for emergencies such as the one you just dealt with. Just a few dollars each week can really add up over time. This emergency fund could save you a lot of stress and hardship in the future.