How to Deal with a Financial Emergency
What to do to Handle Financial Emergencies
Financial emergencies can happen to anyone—and they usually happen when you least expect them. One day, everything is going fine. The next, your car breaks down, your hours get cut at work, or a surprise medical bill lands in your mailbox. When money is tight, an unexpected expense can feel overwhelming.
The good news? There are steps you can take to stay calm, get control, and get through a financial emergency with confidence.
This blog will walk you through what to do before, during, and after a money crisis—plus offer tips to help you be better prepared for the next time life throws you a curveball.
Common Financial Emergencies That Can Happen Any Day
Unexpected expenses come in all shapes and sizes. Here are a few examples of emergencies that can cause financial stress:
- A car that suddenly won’t start
- A trip to the emergency room
- A broken appliance that needs replacing
- A paycheck that’s delayed or missed
- A high utility bill that’s more than expected
- An unexpected childcare or school-related cost
- Rent or mortgage that’s due and you’re short on cash
If you’re facing any of these—or something similar—you’re not alone. Many people live paycheck to paycheck and don’t have enough saved for a surprise expense. That’s why it’s important to know what to do when a financial emergency strikes.
What to Do Before a Financial Emergency
The best way to handle an emergency is to plan for it—before it happens. Here’s how you can get ready now:
Build a Small Emergency Fund
Building an emergency fund can start small. Start with even a few dollars a week. Over time, this can grow into a helpful cushion for when the unexpected pops up.
Track Your Expenses
Know what your monthly bills and spending look like. That way, you can see what’s essential and what you might be able to cut during tough times.
Separate Needs vs. Wants
Make a list of your must-pay items—like housing, food, and utilities. This helps you focus on the most important bills first when money is tight.
Reign in Expenses
When you’re in any emergency situation, your “survival mode” might kick in, causing your main focus to become maintaining the basics like shelter, food, and clothing. So, we look to extraneous bills that can be cut in order to free up funds to handle the financial emergencies. If you spend the time to determine exactly how much you need each day, week, and month to go towards paying your bill, you have a much clearer idea of what bills can be cut to balance it out.
Here are a few suggestions to lowering your expenses:
- Defer payments: Are there any bills that can be safely deferred for a short period of time? Think car payments, student loan payments, or even credit cards. Contact your lenders to see if they’re willing to help; sometimes they’ll offer to let you skip a payment and free up the cash to go towards your emergency.
- Drop Unnecessary Bills: Having a nice dinner out may be a necessary relief from the mundane every now and then. But with some households spending up to $10,000 a year eating out, it can quickly become a burdensome habit. Free up funds from unnecessary purchases to help you make your payments. It may take some adjusting, but remember, the sooner you can pay this off, the faster you can get back to normal.
- Get Creative with Purchases: While you’re at the grocery store buying more food than normal because you’re committing to eating in, you can still save even more money. Several websites can help you with savings on groceries and everyday services.
Find Emergency Cash Resources
In some situations, your financial emergency calls for immediate emergency cash. In those cases, you do have multiple options available, even if you have a low credit score. Some of those options include getting a title loan, installment loan or payday loan with LendNation. It’s quick, easy, and confidential – and in many states, you can apply online or in-store. Don’t worry: LendNation is dedicated to supporting customers by taking precautions to prioritize your health in-store.
LendNation has options for you to manage your loan from the comfort of your home if you can’t, or do not wish to, visit a store. Visit www.lendnation.com to access your account 24/7 to check your account balance, make a payment, refinance or extend your current loan, or apply for a new loan depending on which state you live in.
Either way, the application takes only a few minutes, and depending on where you live and what you qualify for, you can get loans from $50-$10,000. In some cases, a short-term loan can actually be cheaper than a cash advance from your credit card.
Other ways to make quick cash include:
- Sell your valuables. If you own something of value, you may be able to sell it quickly to a person or specialty store near you. Remember, though, the faster you need the funds, the less you’ll get for it.
- Talk to friends or family. When in a financial crisis, most of us report that our family becomes our safety net, helping us through the crisis. Make a list of friends or family who might be willing and able to help.
- Contact local charities. There are several nonprofits and charities throughout the country that might be able to help you through.
There are two important things to remember as you’re going through this situation. Remember that there is a way out and don’t be so hard on yourself! Life happens to everyone and beating yourself up about it won’t help anyone, especially you. Take small steps to get to the other side of financial emergencies – and LendNation stands ready to help.