It’s alarming, but 56% of Americans can’t cover an unexpected $1,000 bill with their savings balance. Hopefully, you’ll never experience surprise expenses, especially if you’re part of this demographic.
But there’s always the possibility of a car repair here or an electronic replacement there springing up. And you don’t want to be caught off guard; otherwise, it can be a real challenge.
Knowing what to do ahead of time can decrease stress and help you keep a level head. Here are some things you can do if you have unexpected expenses that are stressing you out.
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Borrow Money From Loved Ones
If you’ve got a strong support system, then there’s got to be a family member or close friend who’s willing to lend you money. They love and care for you, so they’ll be eager to help you get on your feet.
However, not everyone is comfortable mixing finances with relationships, or you may not have anyone to rely on. Then the other options below may be better.
Take Out a Loan
Those who have built up a good credit history and scores can consider taking out a loan. The higher your credit score, the more you can borrow, and the lower your interest rate too.
Do note that some loans can take a little time to clear. This may not be speedy enough for you in emergencies.
Use Credit Cards
Do you have credit cards, and you haven’t maxed them out yet? Then these can help out in a pinch.
It’s not the most optimal route, but these pieces of plastic can mean all the difference between paying bills or being down on your luck. You can even use them at an ATM to withdraw cash if needed.
Just make sure you pay the balance back pronto. You’ll be stuck in a neverending loop of debt if you don’t.
Sell Your Items
If you get desperate, you can sell your valuable items for cash to pay for your unexpected expenses. There are several avenues to do so, both online and offline.
To get cash instantly, sell your things to a secondhand store. However, if you can wait a little, try listing them online to get the maximum prices possible.
Prepping for the Future
You now know what to do if you have unexpected expenses. But how can you prevent them in the first place?
One way is to put a small chunk of every paycheck into your savings account. You may have to shuffle priorities around and cut out some stuff, but it’ll be worth it when you have a safety net.
Another way is to take out personal insurance. Having personal insurance from Ovation Insurance stretches across a wide range of things, including homeowners, renters, automobile, life, and other vehicular coverage. So if you can afford it, it’s worth taking out an insurance policy or two.
Take Care of Unexpected Expenses With Less Stress
Unexpected expenses can stress anyone out, even if they have a decent amount saved up. But if you know what your options are beforehand, then you won’t feel as panicked when you need cash.
Whether it’s asking your loved ones, taking out a loan, using credit cards, or selling your items, there are several ways to get money. And by taking out insurance, you can be better prepared for the future.
Got more questions about finances? Then explore the rest of our blog page.
Pankaj Majumder, a seasoned Civil Engineer, combines technical expertise with a passion for innovative infrastructure solutions. With a strong academic background and diverse project experience, he excels in creating sustainable and resilient structures that shape the future of urban development.
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