It’s one of those things in life that no matter how much you plan around it, the unexpected can still surprise us, especially when it comes to your finances.
Whether it be an expensive repair bill from a car breakdown, a boiler failure that can only be replaced, or many other things we could easily list that all involve money to resolve. According to a financial well-being survey by Perkbox, only 33% of UK adults would describe their financial well-being as strong, with 18% saying it is poor or very poor.
With this in mind, many would not be sufficiently prepared for an unexpected expense, so what can they do? Here we take a look at some of the best ways to get funds in an emergency and how to take steps to help in the future.
Emergency Funding
Having the means to resolve an expensive repair bill will come down to if you have the available funds or credit. If you do not have enough immediately available, looking for sources of emergency funds to help like a loan will mean the difference between resolving the emergency quickly or not.
You will need to ensure that you can afford the repayments and you are happy with the interest being charged as they should only be used in the short term, rather than as a long-term option with many months of repayments. If you are able to pay off this form of emergency loan quickly, it can be an ideal short-term solution.
Credit Unions & Grants
An alternative option to traditional loans, a credit union is run and owned by its members and can help those who have joined with low rate loans, financial help and advice, and other benefits. You can search for your nearest credit union and look into your eligibility to become a member, but you will usually need to have some form of savings already as part of the sign-up process. As well as credit unions, you may be eligible to apply for other benefits or grants that can assist in an emergency. Turn2Us is a charity that can help those in financial difficulty and assist in finding what you are entitled too as well as featuring a grants search function.
Emergency Savings
If you’d rather not have to take out a loan to resolve your situation, using your savings can be the best way to resolve an emergency bill. This way you can pay quickly to resolve your situation without taken on any further debt. Ideally, you will have an emergency savings fund that, according to the Money Advice Service, should cover approx. 3 months of essential outgoings. Of course, many may struggle to have this kind of money available straight away, so it is good to start aiming towards this figure to help in the future when the unexpected may arise again. Even if you can only afford to put aside a small figure each week or month, this will build over time and provide a significant savings pot to help with any future emergency outgoings.
Speak to Friends and Family
It may seem like an obvious one and it may not be ideal but speaking to your friends and family about your emergency expense can help. As many as 41% of UK adults aren’t comfortable talking about debt with friends and family so it’s not uncommon to feel uneasy approaching this option. Either they will be able to offer some form of financial help to resolve it, or they will be able to give you advice and support, pointing you in the right direction to help resolve it. Either way, although it may be a difficult conversation, it will help you feel better speaking about it and they may be able to provide the financial help you need, especially if you have tried the other options with no resolution.
Hopefully, whichever way you decide to get the emergency funding you require, you’ll be able to resolve your unexpected circumstances quickly and get your finances back on track.
