Don’t you just hate financial surprises? Unless of course it comes in the form of a financial increase, no one really likes to deal with those life emergencies that leave you scrounging for pennies. An expensive car repair, decrease in wages, and even an extensive plumbing or electrical repair can easily leave you in a jam. Though it is important to have an emergency savings for instances like these, let’s face it, not all of us have them.
For those of us that do have “rainy day accounts”, you may not have enough in the account to cover the cost of the financial emergency. Whatever the case may be, it is important to stay calm (sure, that’s easier said than done). You don’t want to get so wrapped up in the stress of the matter that you make a poor financial decision. Below are just some tidbits on how to deal with and unexpected financial matter without jacking your finances up even more:
1. How Bad is It?
There are instances in which our minds lead us to believe something is an emergency when it’s not. Sure, a car breaking down on you can make getting to and from work a bit more complicated, but is it so bad that you need to borrow the funds to make the costly repair or purchase a new car altogether? So before making a lasting financial decision ask yourself, how bad is it?
· Does it prevent me from handling my daily responsibilities?
· Will it hinder my lifestyle of quality of life?
· Can it wait until I actually have the funds to handle the matter?
If the financial matter does not prevent you from doing what you have to do on the regular basis, does not hinder your quality of life, and can actually wait a few weeks until you secure the funds, then it is not an emergency and you don’t need to make an impulsive financial decision.
2. Are There Affordable Alternatives?
When you’re in the midst of a financial emergency, sometimes sound decision making can go out the door. You have an issue that needs to be resolved and rather than take the time to sort through your options, you choose the first solution that comes to mind. For example, if your car is completely broken and would cost too much to repair, the likely first option would be to go out and purchase a new car. However, if you weren’t fully aware of the true costs of car ownership, then this could be long term expense you weren’t expecting.
A more affordable option might be to consider buying a monthly bus or train pass, carpooling with coworkers, or borrowing a family car on the weekends to get around until you’ve saved enough money to purchase a decent used car for cash. This means no need for a loan and lowered car insurance costs which is the better option.
Deciding You Need Financial Assistance
If your financial emergency hinders your ability to get things done throughout the course of a day, changes your lifestyle, and it simply can’t wait until you accrue the funds yourself, then you’re going to need to consider obtaining financial assistance. There are plenty of options out there, however, when dealing with emergent financial matters (i.e. faulty electrical wiring, a major car repair, or a need to prevent a service from being shut off), obtaining a short term loan is an option.
Such short term loans provided by companies like Blue Trust Loans are great because they have very few eligibility requirements, can be applied for online, and can be deposited into your account within a few business days. This option can help you obtain the funds quickly. If obtaining a short term loan is something you need to handle an emergency, be sure to only apply through trusted service providers. Since you’ll be providing private personal information, you want to make sure it is in the right hands. Look at things like the Better Business Bureau for complaints, consumer review sites for opinions, and social media pages such as this Twitter account for Bluetrustloans.com to see how credible the company is.
Dealing with emergencies that require you to have accessible cash on hand can be tough. No matter what the case may be it is imperative that you stay calm and learn how to deal with the matter accordingly. Making impulsive decisions as it pertains to your finances might be a temporary fix, but in the long run it could end up harming you financially. Evaluate the emergency, assess the alternatives, and if financing assistance is needed, do so carefully and through a trusted provider.