Unexpected financial emergencies always seem to happen at the wrong time.
Whether it’s a pet getting sick, a house or car repair, or, as in what caused many to find themselves handling unexpected financial emergencies recently – a pandemic.
The worst part is sometimes when an unexpected financial emergency strikes you’re unprepared.
Therefore, this article is going to provide some tips for handling unexpected financial emergencies.
See Also: Tips For Lowering Your Debt This Year
See if there’s any wiggle room in your budget
The first go-to move is to check your budget to see if there’s anything that can be moved around.
Maybe you’ve been paying off your debt aggressively and could pay the minimum payment for one month to find the funds you need.
Not checking your budget first is a huge mistake. Even those on the tightest of budgets often find that they can come up with some extra cash when an unexpected financial emergency strikes.
NOTE: If you don’t have a budget already you should create one to keep track of your income and expenses.
Borrow the money from a friend or relative
As long as the financial emergency isn’t an extravagant amount, you could see if there’s a friend or relative that could give you a hand.
However, if you do accept a loan from a friend or relative paying them back needs to be one of your top priorities.
Not paying back the money that someone lent you is a definite way to ruin a relationship.
In fact, before even accepting the money it’s recommended that you have some sort of written agreement created so everyone knows the payment schedule – basically treat the loan the same as you would if you were borrowing from the bank.
See if a payment plan is an option
Many unexpected financial emergencies can be handled with a payment plan.
For example, many vets will allow you to make a deposit on your pet’s care and you can pay over time or they’ll guide you towards some payment options. The same goes for medical emergencies such as dental issues.
However, similar to credit cards, the payment plan will most likely incur interest and you will have to make on-time payments to avoid having it affect your credit score negatively.
NOTE: Before accepting a payment plan, take the time to look into the repayment terms. You may find that it’ll be more favorable for you to explore a different route to handle the emergency.
Take out a quick personal loan
A quick personal loan will usually allow you to be approved for up to $10,000 within a few minutes, unlike traditional bank loans, and are a better alternative than getting a title or payday loan.
You’ll gain access to the money the same day, depending on the time you apply, and everything is done via the internet.
They will ask for you to verify certain information, but usually are willing to work with less than perfect credit scores.
However, if you take this route, it’s also important to look at the repayment terms (i.e. can you pay off the loan early without being penalized) and interest rates.
Start a quick side hustle
Freelancing and remote work are great ways to make an additional or in some cases even full-time, income. However, unexpected financial emergencies, usually only give you a few days max to come up with the funds.
Therefore, starting a quick side hustle, such as cleaning neighbor’s houses, mowing lawns, or even selling some of your possessions, will allow you to get some, if not all, of the money you need quickly.
You can handle an unexpected financial emergency
Unexpected financial emergencies can happen at any moment. If you’re not financially stable it can cause a lot of stress.
These tips can help you handle your current situation. However, once you’ve resolved it make sure to start working on an emergency fund so you’re better prepared when something unexpected happens again.