One day life is going along fine, and your money is in order. Then the next day, everything is thrown into disarray as you’re hit with the pain of a financial emergency. The sad thing is that, due to their very nature, you cannot fully prepare for the potential damage they can cause.
This is because financial emergencies come in different shapes and sizes, and they can strike when you least expect it. Your car might breakdown unexpectedly, for example, or a storm may cause enough damage that you need to hire a roofing company.
Have you recently suffered from an emergency that has put your finances in jeopardy? Here’s a quick guide on getting through the situation.
Assess your current position
When you suffer from a financial emergency, going into a panic isn’t going to help with anything – even if it is an understandable reaction. Instead, it’s important you take a step back so you can carefully assess the situation.
Have a full understanding of what caused the financial emergency, and then take the time to know how this will affect your finances in both the short and long-term. There are certain expenses you will need to prioritize, so ensure all important bills are covered while more frivolous ones are scrapped (if possible).
Find your financing
If you don’t already have enough money in the bank – and chances are that’s the case if you’re reading this guide – then you’ll have to find alternative financing.
First of all, and even though it’s never easy to ask, check to see if your family or friends can help out. If that’s not an option, you could always go down the credit card route. However, there are quick loans available that are specifically designed for financial emergencies – and these are particularly useful due to their convenience and fast application speed.
Put on your negotiating hat
As newsweek.com reveals, there are various ways you can negotiate down. Just keep in mind that if you are contacting a lender with the intention to lower payment rates, you do so as soon as possible. Leave it too long, and you’ll likely have delayed or forfeited on payments, which makes any sort of negotiation a much tougher task.
Also, remember that it never hurts to ask. The worst that can happen is you get slapped with a ‘no’ by your lenders. Yet the best-case scenario means you could benefit from helpful, ongoing savings.
Plan for the next emergency
You’ve now experienced the trouble caused by a financial emergency. Once you have made it through this hardship, there isn’t a better time to prepare for the next one.
This begins by creating an emergency fund. Set yourself a savings goal and try to put aside a certain amount of money each week. Even if it’s just $20 a week, this can soon build up over time. Plus, it doesn’t take much to free up money – it could be as simple as not having a weekly takeaway or preparing your own meals for work.
