At some point in there life and probably more than one time everyone will have an emergency in their life that will be expensive. These emergencies can be car related, medical expenses or even something such as your home flooding. The possibilities of the type of emergency are endless. However they do happen and they can often cost you plenty of money to get corrected. However you do not need to go get into debt to get these corrected. This article will help to explain what options are available to you to keep you from getting deep into debt.
Family And Friends Might Be Able To Help
If given the opportunity many people will not want to ask family or friends for help with a financial matter. Often times it can destroy a relationship if it is not treated properly. However if you need to borrow money a friend or a family member may be able to lend it to you without you having to pay a large amount of interest and you will end up saving money in the long run. Of course you should be sure to pay every penny of the amount borrowed otherwise the relationship could be ruined.
Emergency Overdraft From Your Bank
If you are expecting a payday shortly after the emergency takes place it is possible that your bank can help by giving you an emergency overdraft to cover the cost. This is something that you will have to talk to your bank about and explain the situation. It is not a guarantee that the bank will grant this overdraft to you but it is a possibility and you will not know until you ask.
Sell Or Pawn Items You Do Not Need
If you have an emergency things that you own might not look as important to you as they did before. It might be time to sell these items to help with your emergency fund. If you have the time to sell them outright on Craigslist or on eBay this would be the best way to get the most for your item. However if you need the money quick your best bet might be to visit a pawnshop with your items.
Borrow From Your Retirement Accounts
Generally a financial professional will tell you not to borrow from your retirement accounts. However if there is an emergency that you need the money for and you have no other access to cash you might have to borrow from these accounts. One of the most important things to remember is to be sure to pay the money back in the time allotted so that you will not have to pay the penalties as you would with a traditional withdrawal.
Cut Back On Your Expenses
When you have an emergency that you are trying to decide how to pay for you will need to look at your budget and decide on where you can cut back on your expenses. This could be with the amount of money you are spending on food, not using the air conditioning, taking public transportation to work or even shutting off some of the services on your cell phone. Any of these will help you to save money.
There are many different ways to obtain money when you have an emergency without requiring you to get into debt. The tips above are only a few there are also many more. When in doubt you can always ask a financial professional for assistance in trying to figure out where you can get the extra money you need.