Unexpectedly having to pay out for an urgent repair can leave even the most financially prepared person a financial headache. No one wants to resolve an emergency with spending lots of money in the process, however, sometimes it’s unavoidable.
Knowing where to turn if you don’t have the available funds or credit can be stressful, especially if your credit history is less than perfect. Here are some of the ways you can help resolve an emergency quickly.
Find Emergency Funding
You may have considered borrowing options through traditional lenders such as banks and credit card companies, but if you have a poor credit rating and a lack of time to resolve your emergency issue this may not be the quickest option. With emergency loans, you can get approved quickly for a small loan to cover your emergency expense, sometimes within a few minutes, and you don’t have to be an existing customer to do so. This means, if approved and you can afford repayments, you can have the money you need on the same day, in some circumstances, and pay your emergency bill straight away. 52% of people who take out a payday loan chose to do so because of an unexpected increase in expenses. The convenience of this option is ideal when you’re in a hurry and it can be paid back with affordable repayments, but be sure to choose a regulated lender from the many emergency lenders available and check the Financial Conduct Authority (FCA) register if you are unsure.
Get in Contact with Existing Lenders
If you have an existing loan or credit card, it’s worth speaking the lender and explaining your situation. Depending on the type of product you have, they may be able to help you as an existing customer by raising your credit limit so that you can cover your emergency expense, or even provide additional funds. This will depend on if you have been maintaining your current loan or credit card repayments and are a trusted borrower. If they can’t help with additional lending, they may be able to offer a repayment holiday for example, with up to May 1.5 million repayment holidays granted in the UK. These funds saved can then be used to help resolve your issue. Every lender is different and may not be able to help your circumstances, but there is no harm in asking.
Speak to Friends & Family
If you have tried to apply for borrowing and been turned down, or even if you’d prefer not to take out a loan to cover your emergency expense, speak to your friends or family about the situation you are in. For some people, this can be understandably difficult to talk about, but with 2.6 million people in the UK worried about paying bills since the global pandemic, it really is good to talk about any issues with money and receive emotional support during a difficult time. Talking to them may even bring up other ideas you may not have considered and will help relive any worries or stress about your situation.
Start to Build an Emergency Fund
Ultimately, you’ll want to avoid experiencing a financial emergency in the future, however, it’s best to be prepared for next time just in case. Building an emergency savings fund is the best way to do that and you don’t have to put aside huge sums each week or month. As many as 1 in 4 households have no emergency savings pot, exposing many to being caught out by an unexpected expense. Putting away what you can afford even if it’s just a small amount each week can quickly build up over a year. The difficult part is ensuring it stays an emergency fund and that you do not dip into it for other expenses. This should be a separate account if possible from any regular savings and you should aim to have the equivalent of at least 3 months of outgoings so that you can cover any payments if say you lost your job or another unexpected bill arrives.
By considering these options, you’ll hopefully be able to resolve any emergency quickly and relieve some of the stress involved.
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