What To Do When Emergency Expenses Pop Up - Where To Find The Funds

emergency expense fund plan savings preparation

Do you find yourself living on a pretty tight budget? Are all of your monthly expenses carefully mapped out with funds going directly to them? Do you have very little cash left over at the end of the month to put into savings, or use as extra? If you've answered "yes" to these questions, then consider yourself in good company, as many others find themselves in the same boat. In fact, it is estimated that as many as seven in 10 of the working population in the UK consider themselves "chronically broke" i.e. living pay check to pay check. 

Living pay check to pay check may allow you to get by when it comes to your regular monthly expenses, but what happens when an unexpected cost pops up? How do you possibly find the funds to pay for it? Unexpected expenses are something that cost Brits £17billion a year. So how can you cope with them? Here are some tips. 

Payday Loans Can Offer Quick Funds 

If you’re just in need of a small amount of cash, and you need to be able to access it quickly, payday loans such as those you’d find through BingoLoans can be ideal. This style of loan is meant for emergencies where you don't have the cash right now, but will be able to pay it back in a short time. Payday loans through sites like BingoLoans come with repayment terms that range from one to 12 months, so you need to keep that in mind when deciding whether it's right for your financial situation. 

Because you get an instant decision, you can have the cash in your bank account in as little as a few hours, ideal for emergencies. 

Get A Credit Limit Increase On Your Credit Card 

Another option is to speak to your credit card company and see if you qualify for a credit limit increase. This increase may be enough to cover your surprise expense, and take the pressure off you. Keep in mind that your credit card can have a pretty high interest rate, so the faster you can pay off the new expense, the better for you. 

Work Extra Hours 

For those who have the option of working extra hours or overtime in their job, this can also be a great solution. Sure, it will mean you'll be exhausted, but remember it is a temporary situation that is meant to help you pay for that surprise expense. 

Apply For A Credit Line Or Personal Loan 

For expenses that are larger and costlier, then it may be necessary to apply for something such as a personal line or credit or personal loan. These will require you to speak to a lender, and tend to be a slower process. If you’re in need of immediate cash, this process may not be fast enough. Where this solution makes sense is if you need a large amount of money, and can’t afford to pay it back within a short time. 

There Are Ways To Finance That Expense 

So, before you get too overwhelmed by that unexpected expense, remind yourself that there are ways to deal with it.