You work hard to make the money you need. You budget to the penny to make sure everything is covered – and so you can breathe. Then, out of nowhere, you end up with an unexpected bill on your hands. And it’s not something you can cover with your current finances. What are you supposed to do?
Unfortunately, this is a common occurrence. Sometimes, no matter how hard you try, an emergency bill or expense knocks you off track. It might come in the form of car trouble, health or dental emergency, plumbing problems, and even unexpected deaths in the immediate family. As if the situation doesn’t warrant enough stress and emotional toil on its own, the financial aspect can make you feel like you’re drowning.
There is good news, though. While it might take a little work, these unexpected expenses don’t have to bury you. The following tips can help.
Look Into Payment Plans
Many places will allow you to make payments over time. This is especially true with medical and dental expenses. Those places want to get paid, and if you’re willing to pay in a timely manner, they’re usually happy to work with you.
Put Something On Hold
Sometimes, you might need to put a regular expense on hold to take care of an unexpected expense. Don’t put your rent, house payment, or necessary bills on hold, though, as this can lead to more trouble. However, if you have some unnecessary items in your budget, consider putting them on hold for the time being. As important as date night and guys’ or girls’ night out can be, you might need to skip a time or two. It’s hard to enjoy fun times, anyway, if you have stress hanging over you.
Declutter Your Home
Most people have many items in their homes that they no longer need or want. And sometimes, those items can bring in a decent amount of cash. Take a good look around your home to find items you can sell at a garage sale or online. You might have enough to take care of the entire expense.
Think About Credit Cards
Credit cards are always an option for managing an unexpected bill, but this method should be used strategically. Every month you cannot pay off the balance means that you are being charged interest on top of interest. If you’re not careful, a $300 expense can end up costing you thousands of dollars. If you’re going to use your credit card, be sure that you can repay the balance quickly.
Another option is to get a personal loan. While they do come with interest, it’s a bit different than with a credit card. Personal loans calculate the interest rate upfront and then spread it out over the payment term.
This means that as long as you make your payments on time, there are no added fees and interest. Credit cards calculate the interest according to your monthly balance, meaning it goes up every month you owe.
Before choosing a personal loan, though, be sure to compare rates and payment terms. You’ll also want to see what other customers have to say about the lender. So if you’re considering a company like MaxLend, you’ll want to look at MaxLend reviews before making a final decision. This will give you insight into the process and what to expect.