Being stuck with a massive bill isn’t fun, and it’s even less fun when you weren’t actually expecting it! In fact, this situation can send you into a tailspin both financially and emotionally. Luckily, there are some smart ways of dealing with unexpected and unwelcome costs. Read the post below to find out more.
The thing about borrowing money is that you get charged for this service. What this means is that if you can’t pay back what you owe, you will get levied with additional fees. Obviously, this is isn’t a situation that you want, or always expect either, especially if you thought there was enough in your account to cover your usual payments.
Happily, all is not lost in this situation, because you may be able to contact your credit provider and negotiate the fees with them. You may even be able to change the pay date, or the amount so this doesn’t happen the next time again and send you into a spiral of unexpected and unwelcome debts.
Medical bills, especially from when you are involved in an accident are something that literally adds insult to injury. After all, not only do you have to deal with the unexpected pain and treatment, but you have to pay for it too, and lose time off work while you recover!
Of course, the key here is to find a legal time that specializes in the type of situation you were involved in. That means sourcing the best auto accident attorneys if you have been involved in an incident on the road. In fact, the right attorney can help you construct a case against the person whose fault it was so you can claim back the cost of your medical fees, as well as any time lost of work. Something that can not only help you get back to normal financially but can be a big part in the emotional healing process as well.
Breakdown & Home Repair
Cars are essential for modern day life, but chances are that they will breakdown at some point, something that it will cost to rectify. The same applies to the home that you live in too, and you can bet that it’s in the middle of winter when you have your in-laws staying that the boiler decides to go on the blink!
Of course in both types of situation, you need to get the problem fixed as soon as possible, and this will take money that you didn’t expect to need.
Yes, those that are smart with their finances use foresight to realize that the risk of something breaking dawn is ever present and so set aside money to cover such issue ahead of time.
Although, even if you rent in a financial position to do this there are other ways of dealing with these types of costs including fixing the item yourself, borrowing from friends or family and even selling items of value that you have around the house that you no longer use or need.
All things that at a push can help you deal with unwelcome and expected cost in the short term, and get you out of difficult situation.
(Extra) Pay yourself first ?
Looking to save some money but you keep battling the bad saving habits of the make money.Spend it today problem! So much going around in the space of a month, delaying and pressure with all those bills coming your way. If you are having issues saving, why not pay yourself first to make sure you have enough money in your pocket to start saving and living life.
When thinking about paying yourself first you maybe saying:
- What about my bills
- My budget
- Gas for the car (need to travel less maybe?)
- Car note
- and more…
It is a scary taught because you may say, that you will not have enough money at the end of the month to pay your mortgage per example. We have to be force in a situation to take action,why not avoid those kind of bad events and prevent.
How to prevent?
To have a system in place to help you pay yourself first, even before paying anything. I’m not saying pay yourself by 50% but start wtih a 5% and upscale from there… It is challenging enough just to understand how to work with our money on a daily basis, simplicity is key over here.
Pay Yourself, how?
It means to have money going toward a debt or a saving account right after receiving a form of payment or salary. Once the money goes onto your bank account. The next action should be saving or paying a debt and after working on regular activities like.
- Paying your mortgage-appartment
- Credits (credit cards, credit line)
- Car loan
- Taxes (water, garbage,house,mortgage,city)
- and more…
This is the best thing you could do, is to have some sort of automated system that will force the saving or have your debt paid everytime you have available money. I think this is one of the best way to get started on paying yourself first.
Save Money, Spend less.
Easy to say right! Just save more money and this will give you the habit of spending less… I think there is two school of taught around this topic.
- By saving more money it is logic in a way that you will not spend that much on any extra items or activities you may think about. But if you are in a situation of major debt or even facing bankrupcy, you may not think about saving but about paying your debt as soon as possible.
- Also by saving more money, your putting less money toward your debt, in the end it could be a bad situation coming your way. The creditors are not your friend they are here to make money so you have to be really careful.
Why be careful?
Here is a example:
John and Sara have a house ,paid about 300k five years ago. They have put a cash down of about 50k and did pay for any extra fees at the notary to avoid any issues after. This year, John lost is job and Sara was a stay at home mom!
Imagine the scenario, they lost the house because they couldn’t keep up with the mortage payment, the car note, the bills, the creditors and much more…
Why am i telling you this?
Because they put 50K down five years ago, they pay the mortgage for five years ,the result is… They lost probably close to 100k of their own blood and sweat money and this is really frustrating. This could happen to any of us, always be careful on your purchase and think of a plan B in case of bad missfortune.
Continue to learn about Paying yourselft first… ===> Secure my money
Protect yourself and your family at all cost, have your saving process automated at the source! This is the best way to make it happen.
Have a great day,
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