Finding the Funds to Pay for Surprise Expenses and Repairs

Everything’s going along fine, and then boom: a major emergency hits and you’re faced with unexpected expenses and not enough money to cover them. For example, your car may break down and need major repairs to get it back on the road, or it may even need to be replaced if it’s been in an accident or would cost more to fix than what it’s worth. That’s just one possibility of something that can go wrong and leave you in a financial jam. Other unexpected expenses may include:

  • Plumbing problems
  • A broken furnace
  • Major illness
  • Home repairs

When you come up against circumstances like these, it can put you into a panic wondering how you’re going to cover the cost. But thankfully, there are ways you can come up with the funds to field the expenses of an unexpected emergency. The first is ideal, and that’s tapping into your savings account. That’s why you set money aside in the first place, and it can be replenished later as you’re able. However, not everyone has that option. In fact, most people probably don’t have substantial savings, but there’s no need to worry even if you don’t as below you’ll find some other options for getting money in an emergency.

Installment Loan

When the heater breaks or the clutch goes out are just two examples of when you may need an installment loan arrangement. This option is a pretty good one especially if your credit score is decent. You can go to a bank or a private lender to find out details such as how much you can borrow and what the interest rate would be. That will help you determine how much you can afford to repay each month. Another loan possibility, if you have the means to repay, is a payday loan which will give you an advance of funds that you’ll then repay when you have it.

Credit Cards

Less than ideal but still an option, using credit cards to cover surprise expenses is viable, but you should be careful if you take this route. It can be easy to just “put it on the card” and worry about repaying it later. After all, the monthly minimum is affordable, and if you have a good interest rate, that’s even better. However, this option can be a trap, because it can take many years to repay what you borrow unless you’re able to make substantial payments over and above the minimum each month.

Borrowing from Family or Friends

This is a great option for covering unforeseen emergencies, and the more people you know, the more likely you’ll find one or more people who can lend you a hand. One of the benefits of this approach is that borrowing from family or friends usually means no interest, and that can save you a lot of money when compared to using a loan or credit card. Also, the repayment terms can be easier since it’s likely your friends or family will be willing to work out a repayment rate that will fit your budget and not be too taxing on you.

These are just a few ways you can obtain money quickly when an expense suddenly arises. Whichever route you go, you’ll be able to take care of the situation.