How to Deal with Emergency Expenses

How to Deal with Emergency Expenses

It can happen without warning, often at the worst possible time. Unexpected expenses are those unplanned moments where your car breaks down, something needs fixing, or it could be a forgotten bill that needs to be paid immediately. In situations like this you may find personal loans or installment loans can help if you don’t have the funds in your bank account to cover the costs.  

Car Repairs

That noise your car was making has been getting louder lately, and now it longer works. It’s time to get it fixed. Otherwise, you can’t get to work, and since no work means no pay, you’re with little choice but to get your car to the shop and repairs done quickly.  

Home Repairs

That tree that fell on the house isn’t going to solve itself, and the hole in the roof could become a problem. Perhaps an appliance needing repairs, a window was broken, or the hot water tank has burst and a new one is needed. Unexpected expenses like these can happen and the best way to deal with them is now.  

Pet Emergencies

If you have a pet and they were to suddenly become injured or ill, would you have the necessary funds to take care of them? While pet insurance works for some, not everyone can afford the extra monthly expense. Without an emergency fund, your furry friend is counting on you to come up with alternatives to help them. 

Funeral Expenses

Dealing with someone passing is enough on its own, but if you have financial issues that are going to make matters worse, then you want an easy solution so you can get on with more important matters. A personal loan for funeral expenses can be a quick way to take care of things. Another situation is where you find yourself needing to travel to attend a funeral. If your credit cards can’t help, a personal loan might be the answer. 

This doesn’t cover every possible scenario and just a few examples. There are dozens of reasons why someone might find themselves in need of quick cash.

Dealing with Unexpected Expenses

When you find yourself having to deal with unexpected expenses, there are only a few options. 

Either you have the money in your bank account or an emergency fund waiting, or you will need to find fast cash from somewhere. You can ask friends or family, or possibly sell or pawn something, or you might need a personal loan or installment loan to help you get through this temporary financial crisis.  

Guide: How to Create a Budget That Works

Debt Dilemma

When you’re looking to borrow, everyone would prefer the option with the best interest rate, but what you qualify for has everything to do with your creditworthiness and what you might be eligible for. Those with a good to great credit score will often qualify for personal loans. Those with fair to good credit scores would be a better match for installment loans, and those with bad credit may find their only option is a payday loan. It’s best to avoid payday loans at all costs, because this is a very expensive way to borrow and can create further financial problems for you.  

A personal loan and installment loan are almost identical since they are based on scheduled payments to cover the principal amount borrowed plus interest. This makes them easier to afford as the bi-weekly or monthly payments are more likely to fit with your personal budget which makes them more affordable.  

If you find it difficult to qualify for installment loans, it is in your best interest to start looking into different ways of improving your credit score so you might be eligible for better borrowing options in the future and building an emergency fund as well.  

Following simple personal finance advice like this can help you with being more organized, reducing financial stress, and help you to create a better financial future for you and your family. 

Since there isn’t a quick fix for any immediate needs, reading this means you have acknowledged you may have personal finance issues and ready to take the first step. Reading the articles and guides linked above can help you with taking matters into your own hands so you can begin to fix your financial issues. 

Read More

Canadian Guide to Get Out of Debt

Frugal Habits to Help with Your Finances 

Credit Checks and How They Impact Your Score 

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