Have you ever found yourself in a situation with more month than money? Or had an unexpected expense (car, dental, hot water heater) come up? Sure you have. Who hasn’t? It’s part of life.
Or, maybe there’s that special event you need to attend halfway across the country and you’re a bit short of funds to get yourself there and back again. Maybe the doctor said you need an indoor air purifier so you can stay healthy.
It happens. So what’s the solution for dealing with an unexpected financial crisis?
What To Do
What should you do when that happens? There are several possibilities. We’ll start at the top and work our way down.
Savings
The best thing to do is dip into your savings. That’s one of the things a savings account is for; a hedge or cushion against an emergency. You should also use your savings account to save for your retirement by depositing money every payday. At the end of 30 or 40 years, the accumulated interest will be more than any government retirement account will ever pay you.
Using your savings for emergencies defeats the purpose of long-term savings for retirement, but it’s the best option when the unexpected happens. It’s money you already have, it’s instantly available, and it doesn’t cost you anything.
- Spending Cutbacks
If the emergencies don’t have to be addressed within a short time frame, you should prioritize your expenses and make some cutbacks. Figure out what spend areas can be reduced and by how much. One of the easiest areas to cut back in is eating out. Eliminating eating out can cut your food budget in half, or more.
When you find areas where spending can be cut, save the money you don’t spend and put it toward whatever the emergency is. Pay it down a little at a time each month, without fail, until it’s done. A little persistence goes a long way.
By the way, you’d be surprised at how much you can cut from your budget when you’re motivated. Most people waste more money than they realize because they never sat down and figured out a budget.
- Negotiate With Lenders
If you don’t have any savings and you’ve already cut spending to the bone, the next thing you can do is try to renegotiate your existing payments with the bank and credit card companies. Many of them will protest and argue with you but if you persist they’ll eventually lower the payments under the realization that it’s better to get a smaller payment than none at all.
- Refinance Your Home
If you own your own home you can refinance it to pull some equity out of it. You’ll add years to how long it will take you to pay off your mortgage, so this isn’t a great option, but it’s one that many people have used over the years. Banks are familiar with it, they understand about needing the cash, and frankly, they’re happy to do it because it means you’ll be paying them more interest for more years.
If the bank is happy about something that’s a clue for you to be unhappy about it. Still, refinancing is a viable option.
Same Day Loan
If there aren’t any other options available, there’s nothing you can cut out of your budget, or if you need the money right away, you can get a loan from NeedMoneyNow same day loans.
They’re based in New Zealand and you can apply online. It takes about 60 minutes to apply and get an answer, along with up to $1000, from them. They will automatically deposit the money in your bank then automatically deduct the payments on the schedule you set up with them.
They’re upfront about the interest charges and how much it will cost you to repay them. They give you a hypothetical example of a woman who borrows $500 for thirty days. Her repayment will total $706, including fees and interest.
Are Same Day Loans Safe?
Same day loans, also known as payday loans, have been around as long as money has. Most governments treat payday/same day loans the same as any other type of credit, requiring truth in lending which means the lenders have to disclose how much the loan is going to cost you.
The quick availability, short turn-around time, and lack of collateral requirements have made payday/same day loans popular. Their popularity will no doubt continue for as long as people need money to pay the bills.