What do you do when the unexpected happens? When you get a massive bill that was way more than you ever thought it could possibly be and you’re left wondering how on earth you are going to sort it out.
This happened to us a little while back with our car MOT and we took a few different options in order to pay the extortionate bill off. Of course, these options may not be available to everyone nor may they be the right option for some people but there are so many ways you can keep the wolf from your door when the unexpected happens.
Use your emergency fund
I’ve spoken about the importance of an emergency fund here and luckily we had some in the pot when we needed it. Unfortunately because I hadn’t been saving into my emergency fund for long, I didn’t have the whole amount and it is now depleted but it would have been so much more difficult if I didn’t have that buffer.
Use regular savings
I know an emergency fund is there for emergencies – which our MOT disaster was as we desperately needed the car – but some people choose to leave their emergency fund untouched and instead rely on their regular savings for certain unexpected expenses. Choosing a good savings account provider and getting a good return on your money should be something you consider.
Borrow
Whether this be borrowing from family (which is what we had to do – and paid back within two months) or some other way, sometimes this is peoples only option. It is especially difficult to get yourself sorted in these situations when you have bad credit so be aware that there are some companies who offer loans with bad credit if you are stuck. Whilst borrowing may not be an option for some, it is handy to know that the option is there.
Use your regular funds or credit card
If you have enough available funds in your bank account, get the expense paid and out of your hair. If you have a credit card that you know you can pay off easily and at more the minimum each month (in full would be the best choice but that isn’t always possible), perhaps use that?
What have you done in the past when you have had an unexpected expense? What avenue did you opt for?
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