In this day and age, many families live paycheck to paycheck or on a budget that doesn’t necessarily account for unexpected expenses. With this in mind, it’s important to explore the options available when dealing with an unexpected expense. Only when families are prepared for what to do in such an event are they primed to deal with it effectively.
Here are five options which families facing an unexpected emergency expense should consider:
Quick-Access Part-Time Employment
There are several ways to earn cash fast to pay for an unexpected expense if you have a car and a smartphone. Transport people around the city as an Uber or Lyft driver, bring hot food to the hungry for GrubHub or deliver packages for Amazon Flex. The great thing about earning money through these sorts of “side-hustles” is the flexibility of scheduling. You choose when you want to work, enabling those with full-time jobs and families to raise to seamlessly earn extra money whenever they have the time.
Borrowing money is an option when facing an unexpected expense. Generally speaking, money can either be borrowed through friends and family or through a lending institution like a bank or credit union. Since such arrangements usually involve zero-percent interest, borrowing from friends and family is preferred. However, this option is not available to everybody. For those who have to borrow through a traditional lender, research is key. Start by gathering up as much information from the lender as possible. For example, those thinking about borrowing a short-term installment loan should visit https://www.bluetrustloans.com/installmentloan.aspx to learn about the typical terms and conditions involved. Follow up with information available via reliable outside sources in order to generate a well-rounded perspective before deciding to go this route.
Sell Some of Your Belongings
If you have items such as furniture, electronics, clothes, or jewelry that you can part with, sell them. Websites like eBay and Craigslist are good platforms to sell items you no longer need. If you don’t have any items to sell, try pawning your valuables. A pawn shop will offer what they think is fair for your item and they’ll hold it until you’re able to pay what they loaned you back. Pawning items usually includes a fee so be aware that you’ll likely be paying more back than you borrowed.
Charge the Expense
Credit cards come in handy for all sorts of child-rearing expenses, including the unexpected ones. Charge your card what you can’t afford up front and pay it back over time. Be careful using your credit card for large amounts if you can’t pay it off quickly. Carrying a balance may result in a lower credit score due to minimum payments and a high utilization rate. A credit card payment should be used as a last resort.
Not everyone has access to a rainy day fund or savings account, but if you do it is another way to pay for unexpected expenses. Using your savings can eliminate costly fees associated with getting a loan or using your credit card. The money belongs to you and can be accessed by you any time you see fit. If you don’t have any savings, it’s wise to make a plan and save any income you can.
Unexpected expenses are dreadful and can cause stress and worry. If your family isn’t prepared to deal with these expenses explore your options and see how you can afford to pay for them. Network with your friends and family before taking out loans and using your credit card. Setting aside money for unexpected expenses will allow your family to be better prepared when the time comes.