It’s great when you have your finances sorted, and you feel like you’re really getting somewhere with your money. No worries, no debt and… wait a second, is that an unexpected cost on the horizon? There is nothing more annoying than a roadblock stopping you dead in your tracks, but sometimes there is simply nothing that you can do about it. We’ve put together a guide on what to do if this happens to you, so that it doesn’t keep your finances down for too long. Sometimes, these things just happen. But they can be solved. Phew.
Use your savings, if you have some
If you’ve managed to accrue some savings, then now is probably the time to use them. Yes, it is annoying, especially if you’re saving up for the house of your dreams or that perfect vacation that you’ve been wanting to go on for some time. But the reason that you have this money is to cover things like unexpected costs; without it you’d really be in the dark. You can always save up again for that vacation, and put it back a few months from the date that you originally planned for. If you can’t avoid this payment that you just have to make right now, then prioritize it. You’ll still be able to go to Disneyland one day…
Look to tailored companies for help
If savings aren’t really your jam, then don’t worry. There are plenty of companies out there that can help you with your unexpected issues, and many of these are tailored to the situation that you’re in. For example, Charlotte Bail Bonds, LLC, can help you if you need emergency bail money for a family member, and you can pay this back in installments. This is the same for many situations, whether it is a big bill, a problem with your house or car, or something outlandish that you simply didn’t see coming. Look out for a company that won’t charge you an excessive amount of interest, and will let you pay the money back gradually.
Ask friends and family
If you don’t have a good credit score, or you simply want to avoid borrowing from a company that you don’t think you can pay back on time, then asking your friends and family for some financial assistance may be an option. The important thing to remember here is that you don’t want them to feel obliged to give you the money, and you also want them to know that you will actually pay them back. You can do this by drawing up an official agreement, so that you have something in writing to put their mind at rest. You can find templates for this kind of stuff online if you don’t want to pay out for a solicitor.
Get a loan from the bank
This is the most commonplace way to pay for your unexpected costs, and if your credit score is good then you’ll probably be able to secure a loan from the bank without too much stress. Make sure you look into all of the costs for this: what is the interest rate? When will you have to pay it back? What happens if you can’t pay it back on time? These are all questions that you must have the answers to, so don’t just sign up for some quick money without thinking of the repercussions of this. Research, research, and research again. If you need more help, go into the bank and ask to speak to someone, and compare a few banks on what they offer.
Fight the cost
Before you agree to hand over any cash, check that what is being asked of you is actually correct. If your gas or water company calls you and tells you that you have to pay them a wad of cash immediately, question it. They may have made a mistake, and it could be a tough battle to reclaim what you have paid them. Companies are sometimes in the wrong, so don’t be intimidated into paying just because you presume that they’re right. Ask for details, letters, and always keep email correspondence, as it can be easily traced if any issues arise in the future. Don’t pay for something that you don’t have to!
Get a credit card
Getting a credit card is a difficult call to make if you don’t want to accumulate debt, but one which you may just have to go with. 78% of Americans have a credit card, and there are plenty of choices out there that don’t come with the high interest rates you’d anticipate. Again, research is key here, and remember that whatever you choose may have an impact on your credit score. Speak to somebody and see what the deal is before you sign up, and make sure to ask about the future repercussions of using your credit card for big amounts of money. Choose wisely, and look into all of your options before you take the plunge.
Get a loan from an independent company
If your credit score isn’t the best, you can also get a loan from an independent company, although beware of the high interest rates. These companies are more likely to be hiding something sinister in their terms and conditions, so make sure that you look into every last detail. We’d recommend this as a final resort, as you may end up spiralling into further financial worries because of the costs associated with this. However, if you have to do it, just be wary of what you’re really signing up for when you request the cash.
So, there are many ways to deal with an unexpected cost, if you find that one arises. Whatever you choose to do, the real priority that you should have is to research into all of the details of it, and don’t leave yourself with even more financial issues than you began with. However, if you’re careful, you’ll solve your problem in no time. Good luck!