We could all face an unexpected financial crisis; it can happen for any number of reasons, loss of job, badly performing investment or injury or accident and
it’s essential to have plans in place for such an eventuality. I know to say prepare for an unexpected financial crisis is a bit of an oxymoron but nonetheless although planning cannot take place for a specific issue we can make general preparations for these types of issue.
Use Savings Where Possible
It’s a good idea to use any savings you have before you consider any more expensive options in the long run for you. It’s not ideally what we would use savings for but if we’re being honest it’s probably one of the reasons we would have savings really.
Take Out Finance
If your savings are not enough or you are unwilling to use them than it’s possible to look at taking out finance to help during a tough time. It’s important to properly consider the implications of this and your ability to pay back any loans, overdrafts or credit cards you opt to use, be careful what the interest rates are and that you are not going to be stuck in a cycle of debt following this, you can see instances where people with bad credit already take out high interest loans making things worse.
Release Equity In Your Home
If you have your own home there is value in the equity in the property and did you know you can actually release some of this money by taking out finance backed by the ownership of the property. It’s best to speak to advisor such as keyadvice.co.uk to see how you do this and if it is feasible in your circumstances.
Make Cutbacks In Spending
Another obvious way to help your situation in a financial crisis is to cut back on your spending. Make a list of anything you can cut, monthly outgoings such as gym memberships that go unused, extra expenses at the shopping, a 2nd car, expensive holidays are all examples of things that are nice but in a real pinch can be cut at least temporarily while you get things sorted out.
Sell Any Items That Are Not Essential
If you have any items that are not essential and are worth anything it’s a good idea to get rid of them. Old sporting equipment, bikes, and many other things can be gathering dust in a shed or attic and you’d be surprised how much value is potentially sitting up there.
Check If You Are Eligible For Any BenefitsAlso it’s easy to forget that you can be eligible to receive benefits, even if you are working and especially if you have kids in the house. It’s really very easy to check what you are entitled to by checking online with a benefits calculator such as www.entitledto.co.uk which will give you a breakdown of what you can get and how to claim it.