When Life Deals You a Bad Hand: 4 Ways to Handle a Financial Emergency

by Darwin on May 27, 2018

The pressure that comes with unforeseen financial emergencies can get you running around in circles and lead to worries especially after hitting rock bottom, and all your options have borne no fruits.

Any unexpected expense whether medical bills, a job loss or the need to acquire new equipment for your store may threaten to steal your happiness and send you in a worrying spree considering that other costs still await. Remember, monthly bills, utilities, and repayments of an outstanding loan are all on you. Plus, you have to win bread for your family too.

So how do you handle an economic crisis?

  1. Analyze the emergency

Sit down and carefully assess your situation. Stop over-thinking and keep it cool so you can make the right decisions.

Start by determining the cause of the immediate need for money before looking for options to resolve the problem. After that, you can decide which line of attack can adequately address the financial issue.

  1. Find Extra Funds

Preferably, you want to set aside some cash for an emergency fund, but this may not always be possible. So what are your options when you’ve exhausted your savings?

Loans or use of credit cards may worsen the problem because of their high-interest rates and the fact that lead to a new monthly repayment. So you want to take advantage of the many different financing products to acquire some money to help you cover the emergency. Most modern money lenders aren’t as demanding as conventional banks. They tie their lending to other requirements other than credit card scores and a good history of business performance. Check out these detailed reviewsto see what matches your needs.

Alternatively, you can bite the bullet and check with option of friends and family. Though this may not be your most preferred option, try to make it as professional as possible to avoid putting a strain on your relationship with the Good Samaritan. Also, make sure you pay back the agreed amount as soon as you can.

  1. Prioritize Expenses

Not all your expenses are equal; certain bills are better cleared first than others. Put food and shelter at the top of your list.

Determine what costs matter and settle them so you can have the peace of mind you need to handle the unexpected economic needs. You want to sort out your mortgage installment before you cable bill current because you risk losing the home to foreclosure— yet you can pass up the cable bill and have your house.

After establishing the most important bills, start looking for ways to exclude expenses from your budget. This is the time to sacrifice so you can fill your economic gap, so don’t hesitate to dispose money wasters.

  1. Consult with Lenders

For trouble with medical bills, credit cards, or even home loans, it makes sense first to call your lender. It is in their best interest to assist you with the payments, so they’ll even lower the interest rate for you or extend the terms. Don’t wait until you are severely delinquent before reaching out to their lenders, unluckily by that time they wouldn’t be willing to assist.


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