What You Should Do During A Financial Emergency?
In life, there would be instances where you will be caught off guard and most of them would lean towards financial emergencies. It could be because someone needs medical care immediately, or you lost your job and now face the due dates of your usual expenses.
Regardless of what caused your financial emergency problem to occur, financial emergencies can be tricky to deal with but dealing with it is easy if you know where to start and how to start. If you do try to start without a game plan, you might just give yourself more grief in the process.
To help you get started, here are some tips we can give you to help you deal with your financial emergency and even prepare you in the process for future instances:
Know what the problem is first
When you find yourself in the middle of a financial emergency, it would be difficult to determine just how you can get past it due to the stress it would cause. The stress would then disable you from evaluating the emergency and think of a way to get rid of it.
If you do find yourself in a financial emergency, calm down and take some deep breaths. Calm yourself down so you can focus on the issue at hand. Once you are calmed enough, identify what triggered you to have a financial emergency. Did you lose your job? Did your expenses get caught up with you? Is there a natural disaster that struck your budget blind? Knowing what the cause of the problem can help you determine how you can attack your problem.
Consider getting a personal loan
A good way to alleviate your financial emergency, especially if it is temporary, is by seeking a personal loan. Moneylenders offer short-term personal loans without collateral to anyone who needs it. Moneylenders are also a great way to go for personal loans because they can approve your applications faster than banks or credit providers, even if you have a bad or no credit history.
Of course, before you go to a moneylender to determine which personal loan you should seek, you should research which type of loan fits your situation, how much money you are going to borrow and if you can pay it. You also need to check which moneylender is approved by the government, and which one offers cheaper rates despite the high-interest rate.
If you can pay your loan on the next payday, you can seek a payday loan. If you want to pay the money back for a longer period, you can get a personal loan.
Should you find yourself unable to pay your bills on time, immediately contact your lender if they are ok to extend your repayment deadline. Moneylenders are open to compromises so long as the borrower does not default their payments. The earlier you contact your lender; the best chances you can get the extension you need. Of course, you need a valid reason why you need an extension. It is your moneylender’s discretion if they will accept your reasoning.
Prioritize which expenses will be paid first
When you find yourself in a financial bind, every coin you got must count. You need to save it as much as possible and only use it when you really need it.
In order for you to save up all the money you have, you need to determine which expenses must be settled first before you go to your other expenses. As much as possible, don’t use your money on luxury items or not immediate expenses because there will be a point you might need to settle a surprise bill after you get that luxury item you want.
You should also try to eliminate some of the things you usually focus on so you can save the money for your important expenses. Try pausing your premium subscriptions until you pay off your immediate expenses. If you tend to go out often, try staying at home until you sort your bills.
If you have a lot of items which are not in use, you can sell them to get some money. You can also pawn some of the items you have temporarily to pay off your debts, then just pay back for them when you have enough money to reclaim your pawned items. Of course, do not forget to renew your pawn slip regularly so the pawnshop won’t auction your items.
Prepare for the Next Emergency
If you manage to get past your financial emergency, it is ideal you prepare for the next one because you never know what may happen next.
When you have some extra money with you, put it on an emergency fund. This emergency fund would then be your fall back in case you suddenly find yourself without a job or in need to pay some sudden expenses. Don’t fall behind your savings because the more you save on this fund, the better you will be once the next financial emergency strikes you again.
You should also consider getting insurance to help you cover your potential expenses. Health and auto insurances are available on the market today and they would help you pay your bills in case you have an accident. You can also get a homeowner’s insurance for your house’s safety and disability insurance if you somehow get rendered incapable of working.
Preparation is the Key
Emergencies can happen at any moment whether we like it or not. When it does happen, it is best we are prepared because panicking about solving the issue will bring us nowhere.
With financial emergencies, it is best we first calm down and consider all the options available to alleviate the problem. When you are calm enough to focus on the task at hand, it will be easier for you to determine how you can reduce the burdens your expenses and other debts possess and manage them easily.
With just a little patience and perseverance, you may discover a life free from financial troubles and be secured in case another financial emergency hit you.