The best ways to deal with a financial emergency
Financial emergencies always seem to arise when we can least afford them. If you find yourself with an unexpected medical bill, home or car repair, death in the family, or job loss, you’ll know all too well the pressure of needing funds when none are available. is immediately available. Luckily, you have options for being able to afford these surprise expenses, including the first five below.
Look for a personal loan
Having personal loans available to you are one of the most flexible options you have in times of financial emergency. Private lenders usually offer them at low interest rates and with lenient repayment periods. You can apply for these loans online, with application decisions being made much faster than with traditional lenders such as banks or credit institutions. Even better, you can also take out a personal loan for just about any financial need, big or small. However, remember that these loans will have to be repaid, so only consider this option if your financial situation will become stable again in the near future.
Contact your credit card company
If you are facing looming credit card repayment deadlines while experiencing a financial emergency, you can always consider contacting your credit card companies. Credit companies will often provide assistance in the form of payment extensions or temporary suspensions. Keep in mind that credit cards should never be used as a form of savings and should only be used if you know you can make the payments later. If you want improve your credit rating then you need to understand that every penny and every move you make counts.
Review your insurance options
It’s also worth seeing what insurance-related options you have if you’re currently enrolled in insurance plans. You can consider sell your policy through a life settlement if you have a life insurance policy. You receive a cash lump sum while the buyer assumes your benefits. This is a great route if you need a lot of cash, fast. At the same time, you will forfeit your benefits, which may affect any beneficiaries you have, so be sure to clarify this with them first.
Turn to government assistance
Fortunately, the government offers a number of financial services that can help you in a financial crisis. For example, if you lost your job, you can apply for the Consolidated Omnibus Budget Reconciliation Act or Cobra, which provides temporary health insurance to those who lost it because of their job. This can ease any financial health burden you may face.
Take future preventive measures
Finally, once you have successfully overcome your financial crisis, it is a good idea to take preventive measures to avoid possible future ones. Take a look at your financial outgoings now and divide your expenses into essential and non-essential items, seeing what you can cut back on. Additionally, start an emergency fund by creating a savings account with your bank. Setting aside even a little money each month can make a huge difference down the road to another possible emergency.