If everything in life was predictable it would not only be a bit dull but it would give us the chance to budget for all eventualities and events.
In the real world, we never know when the car is going to break down or when the washing machine suddenly needs replacing. There are so many ways that you could end up being blindsided by a personal emergency, so here are some tips on how to handle a mini-crisis when it occurs.
Most of us will have regular monthly payments for the rent or mortgage plus all the other normal household bills that need paying.
We can budget for these because they are mostly foreseeable and we know how much of our monthly income will be taken up by these items. The problem comes when an unexpected bill or emergency repair needs to be paid for and we don’t have the spare cash available to cover it.
Take stock of your situation
The best advice when a financial emergency rears its ugly head is don’t press the panic button.
Take a moment to evaluate your situation and the current state of your finances. There are numerous options available for getting the money you need in a hurry, including using a short-term loan from a company like Ferratum. If you know exactly when you can repay the loan, this may be an option worth considering.
When you are experiencing a temporary cash crisis due to an unexpected bill coming in, you need to create a list of what you need to pay and put them in order of priority.
Payments like your mortgage or rent have to be considered as a priority. Whilst it is not great to miss a payment or pay late for your monthly cable TV for example, it has to be better to ring them and ask if you can defer your payment for a few weeks rather than not pay a bill that has to be considered a priority.
Raising some extra cash
Depending on how much time you have to get the money together, you could look at some ways of raising some extra cash from your own resources.
If you have some spare items around the house that you don’t need any more, consider putting them on an auction site or advertising them for sale locally. You might be able to get a loan from friends or family but if you prefer not ask them, a short term loan or using your credit card could help.
These emergency financing options are fine as long as you understand the cost involved and know exactly when you will have the money to be able to pay the borrowings back.
A lot of people don’t often much spare cash available at the end of each month but even a small amount put away could help you to build up an emergency fund.
Take a look at your outgoings and see if you can start putting a small amount away into a separate bank account each month. If you are suddenly blindsided by a financial emergency, you may have enough put by to cover some or all of the unexpected amount you need to find.
Jasper Leibius has had his share of financial setbacks, and he wants to help others in the same boat. An avid writer, you can find his helpful posts on many blog sites on the internet today.