There are many costs that can be avoided by taking preventative measures. In other cases, you may be able to set aside money for them or take out insurance to pay for them.
Unfortunately, not all costs can be planned for or avoided. A few examples of unexpected costs that can catch many of us off-guard include car repairs, home repairs, funerals of loved ones and medical emergencies. When it comes to these costs, you need to find the most efficient and affordable way of funding them. Below are a few considerations to help you decide what to do when faced with large unexpected costs.
Can you pay in installments?
Some vendors may allow you to pay the cost in installments. Unlike a loan, these installment plans may not have any interest. This could help to make the total cost a lot more affordable than having to pay it all upfront. Consider asking vendors about these installment plans.
Should you take out a loan?
If an interest-free installment plan isn’t an option, you could still consider taking out a loan in order to spread out the cost. Make sure to shop around for loans in order to find the best rates – don’t get ripped off by a high-interest lender. There may be lenders out there for specialist causes that offer lower interest rates such as lenders that specialise in funeral loans or those that specialise in medical loans. Credit unions may also be able to offer perks such as life insurance and the chance to build savings alongside paying back the loan. Consider looking into these options when taking out a loan.
Can you get help from friends/family?
If it’s a true emergency and you’re already financially struggling, family and friends may be willing to help you out if you ask them. They may be able to lend you some money that you can pay back more flexibly without interest. You shouldn’t rely on friends and family every time you’re presented with an unexpected cost, however once in a while don’t be afraid to ask for help.
Are you legally entitled to financial help?
There may be instances where you can apply for grants or get special discounts – especially if you’re on a low income and have dependents. In other cases, where there has been malpractice such as a car not being repaired properly or an operation not carried out successfully, you may be able to seek legal compensation. Don’t forget to look into your legal rights.
How can you lower the price?
Finally, consider how you can make the cost smaller. One of the most devastating expenditures if the cost of funerals. If it’s a funeral for a loved one, there could be many ways of lowering the total price. For instance, you may be able to shop around for certain aspects like wreaths or cemetery grave markers online. There are funeral advisors out there that may be able to help you find tricks to lower the price. When it comes to car repairs or home repairs, you’ll usually be able to shop around for quotes, providing that it’s not an emergency that requires immediate attention. In many cases, you’ll be surprised just how much you can save by shopping around.