5 Easy Ways to Deal With Financial Emergencies

Sometimes life throws us a financial curve ball that we are required to deal with. Although it is never fun to have to come up with the money to pay for a financial emergency, remember that what doesn’t kill you will make you stronger, and you will get through any sort of financial mishap. Here are five easy ways to deal with financial emergencies.

Don’t Panic

Although this may seem pretty obvious, most people do end up panicking and stressing out over a financial emergency. Whether your spouse was laid off, you have to cash out your 401k, take out another credit card, or borrow money; the key to getting through a financial emergency is to remain calm and level headed. If you find yourself panicking the second you are hit with a financial emergency, you will more easily do something that will cost you even more money at the end of the day or will cause you stress for much longer than needed.

Consider a Quick Cash Loan

Although a quick cash loan comes with a higher interest rate than other types of loans they are designed to deal with short-term emergencies and so you will not have to spend a long period of time slaving over the repayments. On top of this, quick cash loans are often much easier to obtain then other forms of loans such as credit cards or a secured loans. Just remember that you have to keep on top of your payments for quick cash loans, as otherwise you may find yourself in bigger financial trouble then you started off with. However, if you are a responsible person then this may be the best option for your financial emergency.

Trim Your Spending

In order to find the money for a financial emergency it is usually beneficial to get all of your finances in order. Look through your bank account and all of your other accounts in order to find out exactly where all of your money is going. Once you figure out where exactly your money is being wasted, such as on take out or at bars, you will be able to cut down on unnecessary spending in order to allocate more money to your financial emergency. Remember, that this is not an easy process as you will have to determine what is most important in your life as well as what you can cut out.

Explain Your Circumstances

No matter what the reason is behind your financial emergency, it is a very good idea to call every company that you pay a monthly fee to so that you can explain your financial situation. It is worth asking about any sort of payment plan that you can go on or even obtaining a discounted rate. The money that you save doing this can go straight into helping to pay for your financial emergency. For example, calling your cable company to ask about switching to a cheaper plan can save you as much as $50 a month.

Borrow From Friends or Family

It is important that you proceed with caution when exercising this option, as you do not want to lose your loved ones over a financial situation, however turning to a friend or family member may be your best option when it comes to paying for a financial emergency. Remember that in order to maintain a good relationship with someone who you borrow money from, it is very important that you pay them back as soon as possible, and only borrow the minimum amount of money that you need.

Finances - 20 Nov, 2013 - No Comments