What are your options when unforeseen costs hit?
It’s always the way – you feel settled, life is ticking along nicely and then out of the blue, something goes wrong. Whether it’s a boiler on the brink or a horror in the home, you may suddenly encounter an expense that you weren’t prepared for, but what can you do when disaster strikes? The first rule is to not panic – the second is to take the time to think and find the best solution so you don’t become overwhelmed.
What are the common unexpected costs?
Although there are many costs that can pop up unexpectedly, there are a few circumstances that can be quite common, that still cause people to worry when they arrive:
An unexpectedly high utility bill
Needing to find a new home
Appliances breaking down
A trip to the vets
None of these are particularly cheap, yet each of them are emergencies that usually need addressing quickly. Unfortunately, you may not have time to save up some pennies to cover the cost, and may need a quick injection of cash to help you out of the situation. So, what happens next?
Finding finance in an emergency
If you haven’t been putting money aside each month as part of your monthly budget, then you won’t have cash immediately to hand – but don’t panic. The first step is to research your situation and see if there’s a route that might not cost too much money. For example, could you afford a second hand appliance on an online auction or local marketplace site?
You could ask family or friends if they could possibly help you in any way. They may not have cash to lend you, but they could help you with lifts if your car has broken down, let you stay at their home, or even have a second hand appliance that they could lend to you. If they do have money that they are willing to lend you, then make sure you work out any terms so you know exactly how much you’re paying back each month, and so it doesn’t affect your relationship in the long run.
Taking out a loan with bad credit
If you’ve exhausted other options, then you may need to look at taking out a loan, but what happens if you’ve had money troubles in the past and it’s affected your credit? Bad credit loans are available, but should be researched thoroughly before you complete the application. Often, as you’re seen as a higher risk, these loans might need a guarantor, or have a higher interest level which could leave you with monthly repayments that are a little out of budget.
Before applying for a bad credit loan, make sure that you have found a lender that matches your circumstances. You’ll also need to know as many of the details as possible, such as any charges for early or late repayments, your loan term and any contact details should you need to get in touch.
Find out more about bad credit loans over at Choose Wisely, along with the best ways to prepare yourself for application.
If an emergency cost arises in the future, you should hopefully be set to tackle the unforeseen costs without any additional worries or financial woes.