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Top Ways to Deal with a Financial Emergency

Financial emergencies always seem to pop up when we can least afford them. If you find yourself with an unexpected medical bill, home or car repair, death in the family, or a job loss, you’ll know all too well the pressure of needing funds when none are immediately available. Fortunately, you have options to be able to afford these surprise expenses, including the top five below.

Seek Out a Personal Loan

Having personal loans available to you are one of the most flexible options you have during a financial emergency situation. Private lenders typically offer them at low-interest rates and with lenient repayment periods. You can apply for these loans online, with application decisions made much more quickly than with traditional lenders such as banks or credit institutions. Even better, you can also take out a personal loan for just about any financial need, whether big or small. However, remember that these loans will need to be repaid, so only consider this option if your financial situation will become stable again in the near future.

Contact Your Credit Card Company

If you are facing looming credit card repayment deadlines while you experience a financial emergency, you can always consider contacting your credit card companies. Credit companies will often provide assistance in the form of payment extensions or temporary holds. Keep in mind that credit cards should never be used as a form of savings, and you should only use them if you know you can make the payments down the road. If you want to make improvement to your credit rating then you need to understand that every penny and every move made, counts. 

Examine Your Insurance Options

It is also worth seeing what insurance-related options you have if you are currently enrolled in insurance plans. You can consider selling your policy through a life settlement if you have a life insurance policy. You receive a lump sum of cash while the buyer takes on your benefits. This is a great route if you need a large amount of money, fast. At the same time, you will be giving up your benefits which can affect any beneficiaries you have, so be sure to clear this with them first.

Look to Government Assistance

Fortunately, the government provides a number of financial services that can aid you during a financial crisis. For instance, if you lost your job, you can apply for the Consolidated Omnibus Budget Reconciliation Act or Cobra, which provides temporary health insurance for those who have lost it through their job. This can ease any financial burden you may have to deal with health-wise.

Take Future Preventative Measures

Finally, once you’ve managed to overcome your financial crisis, it’s a good idea to take preventative measures to avoid any possible future ones. Look at your financial spending now and divide your spending into essentials and non-essentials, seeing what you can cut down on. Moreover, start up an emergency fund by creating a savings account with your bank. Putting aside even just a little money every month can make a huge difference down the road when faced with another emergency possibility.

Categories: Life