There are few of us who will be lucky enough never to deal with a financial emergency in our lives; if you haven’t already had one, you can pretty much bank on it happening in the future, it’s more of a WHEN not IF situation.
Sometimes, financial emergencies are beyond your control – things like natural disasters and car crashes – which you don’t really see coming, whereas others can be prevented if you are proactive, For example, if you know that your roof is in poor condition, have it repaired before the winter, which will just make things worse or if you have a pet, get insurance before they get sick.
However, none of that will help if you’re dealing with a financial emergency right now. If that’s the case, here are some tips that should help you to get through it relatively unscathed:
The worst thing you can do when a financial emergency hits you out of the blue is panic. If you don’t remain calm, you could end up taking out a loan that you can’t really afford or borrowing money from friends that you have no way of paying back and that will only make things worse. So, sit down, have a cup of tea and think about the situation rationally. If you can’t think of a solution, ask a good friend or family member who’s good with money to talk things through with you and hopefully come up with a good resolution.
Prioritise Your Cash Flow
Financial emergencies can cause your cash flow to dry up quite significantly, so it’s important that you sit down and make a budget that prioritises what is important, Obviously, food and shelter are most important, followed by getting to work and paying your utilities. Next on the agenda if you have anything left over would be debt repayments then if you have anything left, you can put it towards the emergency before possibly getting yourself an occasional treat.
Speak to Creditors
Whether you’ve got a short-term loan from Cigno Loans, here, you’re in debt with the bank, or you’re behind on your utility payments, avoiding the situation will only make your financial emergency worse, and most creditors are a helpful bunch really. So, instead of hiding your head in the sand, call up your creditors and let them know what’s going on with your finances. Chances are they will freeze your interest repayments for a while, lower your repayments until you're back on your feet or negotiate another solution that helps you through this tough time without getting you into an even worse position.
Make More Money
Of course, the best way to get through a financial emergency is by finding new ways of making money. This could be as simple as using a cashback credit card (pay it in full at the end of the month to avoid interest) to effectively lower your costs on the things you must buy, to walking dogs in the neighborhood to make a little extra cash or even taking on a part-time job. Anything you can do to boost your bank account will enable you to get over this financial hiccup that bit faster, and that is what you want.