Killer Bills – 5 Steps You Can Take If You’re Hit With Unexpected Expenses
Do you budget diligently? Sometimes, it doesn’t matter how responsible you are or how carefully you plan, unexpected expenses pop up. It could be a medical expense, a car repair job (which, if ignored, can hamper your ability to commute to work and earn your living) or even unanticipated repairs to your house. When the new expenses are larger than you can manage in a single month, it’s normal to feel overwhelmed and anxious. Instead of giving in to fear, you can combat the problem with a logical solution. Here are five steps you can take to cope with unexpected expenses:
1. Get A Short-Term Cash Loan
Sometimes, the best way out of a sticky money problem is by looking into cash loans. This can empower you to pay off the unexpected expense on the terms you can afford. Make sure you understand the repayment terms and factor a new monthly expense into your budget. If you can afford the added expense, but not the once-off massive cost of the unexpected expense, this is a worthwhile move.
2. Sell Something
Not your favorite option – but its there. If you are on the brink of financial disaster and there’s no fairy godmother or relatives to rescue you – sell something. Know that once you are back on your feet you will replace it. Sometimes, going without a luxury or two is a good wakeup call to get motivated and move forward in your career.
3. Negotiate A Payment Plan
Most people are unaware that many service providers offer repayment plans. Doctors, hospitals, auto-mechanics, even most tax institutions. They generally offer one of two option: they provide you with repayment terms you can accept, which would allow your contributions to span over the number of months they propose, or, they may ask you what you can afford and work out how many months you will need to pay to clear your debt. Learning how to negotiate will go a long way.
4. Look At A Trainee Service Provider For A Cost-Effective Solution
There’s nothing as disheartening as car repairs. Everyone knows to brace themselves for a hefty bill when their car has to go to the mechanic. Did you know that you can look for trainee mechanics who are just as skilled but far cheaper? Just like student hairdressers, makeup artists, and chefs – you can use the services of someone who is still in training. For added safety measures, you can always ask if they have someone senior sign off their work – in most cases, they do.
5. Borrow Cash Against Your House We hear about re-mortgaging a home all the time, but what does it actually mean? It’s a temporary solution for an unexpected expense if you have property but cashflow is currently a little tight. It’s essentially like repaying for the house but sending the money from the bank to the entity with your property as the surety.
Weather The Storm
Money comes and goes. That is a rule that applies to every individual, regardless of their financial position. When money gets tight and times get tough, even the wealthy need to search for solutions. Keep an open mind and continue to research – there are always new solutions for older problems. A consultation with a financial advisor may also help you to incorporate a future survival strategy to prevent an unexpected expense from posing a threat to your finances, again.