Emergency expenses can have some serious consequences on your finances. And if you can’t handle them quickly, they could even negatively impact your comfort and lifestyle. Imagine needing an expensive dental treatment but enduring your pain because you’re unable to pay for it. Or what if your furnace breaks down in the middle of a very cold winter?
Use these tips to handle emergency expenses quickly, allowing you to control your finances.
Use Your Emergency Fund
If you have an emergency fund, you’re in luck. Many people don’t have one. So, use some of the money in your emergency fund to cover your expenses. When you’re done, don’t forget to start saving money again to replenish your fund. If you don’t have an emergency fund, there are other ways for you to handle emergency expenses quickly.
But it would help if you considered saving money for an emergency fund as soon as possible. In a high-interest savings account, deposit small amounts each month until you have enough to cover at least three to six months’ living expenses.
Check If You Could Set Up A Payment Plan
You might be able to negotiate depending on which emergency expenses you’re dealing with. Some service providers will allow you to set up a payment plan to pay them over a few months instead of doing it all at once. Such an arrangement could be easier on your budget and ease your stress.
However, before you set up a payment plan, ensure you can manage these monthly payments. In your situation, applying for a personal loan may be more convenient.
Get A Personal Loan
Consider getting a personal loan when you need help handling emergency expenses quickly. Your financial institution might take several days to approve you for a personal loan, but if you apply with a reputable online lender, it could take as little as 24 hours.
When applying for a personal loan, you must gather documents such as proof of identity, a recent pay stub, and banking information. Once approved, your loan will immediately be deposited into your bank account.
Get A Payday Loan
If you have bad credit, you should rely on a payday loan to cover your emergency expenses. Why? Because applying for payday loans online doesn’t require any credit check.
They are short-term loans that you can repay with your next paycheck. You can apply for a payday loan online in just a few minutes and receive your money the same day.
Remember that this type of loan can become costly if you can’t fully repay it with your next paycheck. Therefore, before you apply, be sure you understand the loan terms and will be able to repay it.
Pay With Your Credit Card
No matter which type of loan you decide to get, the key to staying in control of your finances is ensuring you can repay the money you borrow quickly.
This is true for credit cards as well. Using your credit card is an easy and convenient way to cover emergency expenses. But you can’t just pay with your card and forget about it. Be sure to repay your balance as soon as possible. If you wait too long, you’ll have to pay high interest.
Open a Line of Credit
If you already have a line of credit, you can use it to cover your emergency expenses. A line of credit usually comes with lower interest rates than credit cards or personal loans, which can be great for you.
If you don’t have a line of credit, you should consider applying for one. However, since it could take some time to get approved, this tip might be more useful for a future financial emergency than the one you currently face.
Ask for Help
If, despite your best efforts, you cannot figure out how to handle emergency expenses quickly, don’t be ashamed to ask for help. This could be a good idea if a friend can lend you the money you need. Of course, you must be able to commit to repaying this loan quickly.
You could also seek the help of a credit counsellor or research government support programs, which could provide much-needed support. No matter your situation, you can be sure someone out there can lend you some money, a helping hand, or both.
