15 Apr 2020

How to Deal with a Financial Emergency

Post by Jordan Toplen

No matter how careful you are with money, unexpected financial emergencies can strike when you least expect them, leaving you feeling helpless and blindsided. Whether it’s an emergency home repair or losing your job, a sudden change in your financial situation can hit your wallet hard. 

Regardless of how stressful the situation is, bills need to be paid, food needs to be put on the table, and lights need to stay on, so if you’ve found yourself in a black hole that you see no way of getting out of, here are a few tips on how to deal with a financial emergency.

Assess the Situation

As soon as a financial emergency strikes, it’s important that you take a moment to sit down and analyse the situation. Working yourself up into a frenzy will benefit no one in the long run, so rather than letting your stress levels go through the roof, finding the root cause of your financial emergency is important. Having the time to brainstorm ideas and solutions will reduce stress levels and give you a clearer understanding of what steps you should take to resolve the problem.

Prioritise Expenses

Not all expenses are of the same importance. Some bills will need your full concentration over others, so if you can’t afford to pay everything off, learning how to prioritise is key. Important bills can include food, shelter, and gas and electricity. While many of us feel we can’t live without Wi-Fi, there are plenty of coffee shops that provide it for free. Even saving £10 a month can soon add up and give you a comfort blanket.

Negotiate with Lenders

If you’re struggling with a financial emergency, engaging with lenders may help. Whether you’ve racked up your credit card, or have fallen behind on your mortgage, one of the main duties a lender has is to help you make your payments. After all, they would rather get some cash than none at all, so if that means extending your terms, or providing you with a lower interest rate, so be it. The last thing you should do is wait around until you’re in dire straits.

Find Extra Money

In an ideal world, you will have money put aside in an emergency fund which can be used to pay for unexpected expenses. There are short term loans bad credit direct lenders like LoanPig who may be able to help. You could also try asking your friends and family for some financial help. While nobody likes to admit they’re in trouble if you’re going through a rough patch, having some funds to see you through and sort out home emergencies can put your mind at ease.

Plan for the Next Financial Emergency

Once you’ve made it through your rough patch, the last thing you want is for it to happen again. If an unexpected expense comes in, there are several measures that you can take to ensure you have adequate funds at hand. Downloading a budgeting app can help you gain control of your spending, so you know exactly what is going in and out of your account.

Financial emergencies can be a huge blow and put you into debt. If an unexpected expense needs to be paid, using all the suggestions above can help keep you in control and eliminate the risk of you getting into further debt.