How to Deal with Unexpected Bills

How much money do you have in your emergency fund? Is it sufficient to cater for those out-of-the-blues financial emergencies such as a sudden car repair? If your answer to the above question is no just know that you aren’t alone. A majority of the Canadians usually don’t know what to do when they are hit with an unexpected bill.

No human being is perfect, and even with the best financial planning strategies, you can’t plan for everything. So, what are you supposed to do if a financial emergency comes up at the most inopportune time? Here are some ways of dealing with an unexpected bill.

Take a Loan

This is always one of the quickest and sometimes the easiest answer to cover an unexpected expense. You only need to sit down and evaluate your loans options and how much you need to borrow. However, you need to keep in mind that if you are in a financial fix, then you need quick cash. Therefore, applying for a conventional bank loan may not be an option. You should consider a no credit check loan that will lend you money to deal with the emergency even if your credit score is poor. Furthermore, these types of loans have an easy and straightforward application process; furthermore, you will have access to the funds within a few hours.

Make Room in Your Budget

Do you consider financial emergencies that may come up when drafting your monthly budget? If your don’t, then keep in mind that you are committing a serious financial mistake. This is the best way to create an emergency fund that will cover you in stressful situations. By setting aside a portion of your budget dedicated for emergencies, you will be better prepared to handle that unexpected bill that may arise.

Request for an Overdraft

This can also be an excellent way of dealing with an unexpected bill if you have a good relationship with your bank. Typically, most traditional banks will allow you to request for an overdraft either online or over a phone, and you will get a decision instantly.

An overdraft means that the bank will allow you to spend money to a given limit below your current bank account balance. This serves as a flexible form of debt that you don’t require a fixed repayment schedule as you do with credit cards. The bank will determine how much you can borrow depending on how much goes into your account on a regular basis.