Would you be able to cover an emergency expense despite the looming pandemic? Experts say about one in five American families couldn’t during the height of Covid-19.
This fact helped encourage Congress to pass relief bills, but are they enough? Could you handle a few unexpected expenses with your stimulus payments? Probably not. Even the recent $1,400 check wouldn’t pay most American’s rent for one month.
If you get hit with an unexpected expense, don’t feel out of options. Below, we’ll go over four ways to get the services or products you need without waiting months to save up the funds.
1. Work Out a Payment Plan
When an unexpected expense pops up, the first thing you should do is discuss the bill with the provider. Often, providers are in a good financial position. That means they’re often willing to work out a deal with you, even if you can’t afford your bill up front.
Most Americans don’t realize they can negotiate their bills. Sometimes, your provider will even give you a discount due to your circumstances. There may even be discounts you’re eligible for that you didn’t know existed!
Even if you can’t get your bill lowered, you can likely set up a payment plan in exchange for the services. So long as you keep up with your payments, you’ll be in good standing with the business.
Is working out a deal not in your best interests? If so, then it’s time to re-budget your finances. If you don’t want to take on debt, then you’ll have to come up with the money.
Often, that means living below your means. You’ll have to cut down on your expenses. This will be a challenge if you’re already living on a tight budget. It’ll also be the most difficult way to cope with a new expense.
3. Paycheck Advances
Wouldn’t it be great if you could get paid before pay day? Well, we have good news! You often can!
Talk to your boss about a paycheck advance. If they’re not accommodating, then there are payday companies that can help you. Be sure that you can afford any fines before you agree, though.
4. Take Out a Loan
Finally, you could take out a loan to help you overcome being short on money. Loans aren’t free, but you can often find companies that will offer you good rates for borrowing money.
You can learn more about the different types of loans at yourfundingtree.com.
How to Handle Unexpected Expenses in 2021
Unexpected expenses can derail your budget. They can also leave you between a rock and hard place. Should you go into debt to get the services you need? Or, should you forgo your needs for months while you save up?
Don’t feel powerless against new expenses you weren’t expecting. The above four methods can help you get the money you need in a pinch.
If you’re an entrepreneur, then you know how these expenses can impact your business. We’ve got plenty of resources to help your business thrive through all its challenges. Keep searching through our blog to see more of our informative content.