Caught Short - 5 Steps To Take If You're Hit With An Unexpected

There you were – minding your own business feeling comfortable with your financial situation, then bam! Something happens to turn your dreams of financial freedom into a true financial nightmare.

If you’ve been budgeting all along and putting what you could into savings, dealing with the unexpected expense will be doable without too much discomfort. But, if you’re living paycheck to paycheck with no extra money to spare, managing a financial setback can seem nearly impossible.

If you fall into the latter category and are experiencing an unexpected expense, use the suggestions below to take care of it quickly so it doesn’t haunt you forever:

1. Get a Loan

In dire financial situations, acquiring the money you need as quickly as possible is important. Rather than stress about where the money is going to come from, consider fast loans as a solution. These loans are available to people with less than perfect credit and often carry lower interests and have more flexible payment options than the dreaded payday loan. 

2. Find an Expert-in-Training

Experts of all types have to start somewhere, and many of these experts in training can provide the services you need at a discounted price. For example, beauty colleges offer hair styling services on the cheap if you’re okay with their students cutting your hair – supervised by professionals, of course.

If your financial strife is auto-related, consider going to your local tech or vocational college for car service. Allowing future mechanics to fix the problem could save you tons of money.

3. Get a Job

While this solution isn’t an ideal one for every situation, it is an option if you have the time. The idea here is that the job will be temporary – just until you get your financial situation under control again. Try to find a part-time job that isn’t difficult and that you can do in your spare time. Use the money you make from it solely for paying off the debt that put you in dire straits. 

4. Borrow from Family or Friends

Not everyone has a family member or friend with extra cash to lend, but if you do, this solution might make the most sense since these types of loans tend to be interest-free.

No one likes to ask their closest contacts for money, but if you explain the situation and give a solid plan for repayment, it’s likely your family won’t have any problem loaning you the money. 

5. Revamp Your Budget

If you take a good look at your budget, you’ll likely find areas where you can cut back to allocate money to pay off the debt. Do you go out to eat periodically? If so, you can plan to stay home and cook every night to free up a few dollars every week. Do you allow yourself a night out once in a while? While staying in isn’t as much fun, doing so will allow you to pay down your debt that much faster.

When an unexpected expense rears its ugly head and there are no reserves set aside for such things, sacrifices need to be made to pay them off and get back on track. The last thing you need is for a financial emergency to send you into a tailspin you can’t pull yourself out of. It’s best to deal with the situation as quickly as possible so you can get back to the life you’ve grown accustomed to.

Hopefully, the steps outlined above help you manage your unexpected expenses fast.

1 comment

  1. All of these are good steps. In the expert in training category, I'd add that most Universities that have dental colleges offer dental services if you let students treat you (they're close to graduation, lol. They won't let a first year student loose on your teeth.)