As parents, we do everything we can to ensure our children are kept safe and secure, but running and maintaining a busy household costs money.
Whether your car needs repairing, or you’ve noticed a leak coming from the roof, we can all be caught out by unforeseen events.
Should an emergency strike, knowing you have the funds to sort out the problem immediately can put your mind at ease. If an unexpected bill comes through the post and money is tight, here is a guide on how to deal with it.
Use Your Emergency Fund
The purpose of an emergency fund is to have money in a place that you can use for unexpected expenses. If your boiler needs repairing, or an unexpected bill comes through the letterbox, you can dip into your pot to meet unexpected costs. To cover most common home emergencies, you should have at least $1,000 in your account. If you do dip into your emergency fund, make sure you replace the amount you take out as soon as possible. Having a safety net in place will take the weight off your shoulders and avoid you living on the financial edge.
Dip into Savings
For homeowners who have a cash savings account that you’re able to access without a penalty, it can be wise to cash these in, rather than borrowing money to cover bills. However, you need to ensure that the cash is not reserved for another purpose. So that you don’t get charged for doing so, make sure you check whether you will be penalized for withdrawing. It’s always better to use your cash savings rather than investments as they tend to be used more for medium to long-term savings.
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Borrow from Family
If you have a strong support network around you, it may be wise to ask a family member for financial help. No matter what the emergency is, you shouldn’t feel embarrassed to ask a loved one for support. Borrowing from family tends to be the cheapest option there is, especially as you won’t be charged interest for how much you borrow. If you borrow money from your parents, make sure that you create a loose repayment strategy and stick to it. Money tends to be one of the biggest reasons why families fall out. So, to avoid any serious consequences, make sure you pay back the money as and when agreed. If you’re struggling to pay it back, let your family members know about your situation as they’re there to help you, not judge.
Use Your Credit Card
While a credit card is one of the easiest ways to pay off unexpected bills, it can prove expensive if you’re not careful. Interest rates on a credit card can be extortionate, and if you don’t pay it back quickly, you could end up paying a huge amount of interest. Using your credit card should be the last resort as you will be spending money that you don’t have and could end up in a mountain of debt without even realizing it.
Consider a Loan
If you’re unable to access cash to pay unanticipated bills, it may be time to consider taking out a loan. Payday UK has a panel of lenders that can provide you with an instant decision on payday loans UK. You can find more information here on how they may be able to help. Payday UK process over 4500 no-obligation quotes every day. What’s more, there are no fees or credit checks involved, meaning applying for one won’t affect your credit score. Before taking out any kind of loan, make sure that you can afford the repayments. Should you fall behind, you could end up in debt that can be hard to get out of.
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Now that you have a better idea of how to deal with unexpected expenses, it may be the right time to look at ways to boost your income which can be put into your emergency fund. The coronavirus pandemic has seen many people lose their jobs and fall into money difficulties. If you’re struggling to make ends meet, there are tons of ways you can money, such as by selling clothing, taking online paid surveys, and even starting your own online business.
If your boiler is playing up, or your washing machine is on its last legs, there are tons of unexpected bills that you may not be prepared for. For those who own their own home, you won’t have the luxury of a landlord who will sort the problem out for you. This means that you must have funds available to cover any home emergencies. To reduce stress levels and ensure you have the allocated funds needed, all the advice above are options that you can look into to access cash to foot the bill.