No matter how well you plan your money management, you’re only one bit of bad luck away from facing financial catastrophe. While you may be able to handle your day-to-day living expenses, unexpected costs have a way of springing up.
It could be a car in need of repair or cash required to pay a vet bill for a clumsy pet, but if you don’t have the money available, it’s the same problem. Many people do not have access to credit at times like this; a product of the 2008 financial crash which has made banks harder to borrow from. If you’re facing a shortfall between your outgoings and your payday is a long way away, you need to find some way to bridge the gap.
At this point, many people may tell you to consider selling your unused items on online auction sites. In reality, that’s rarely a viable option. For a start, the standard for auctions is to run for seven days. Then you’ve got to wait for payment to clear, collection or delivery to run through correctly- and that’s only if someone bids.
Instead, when looking for a buyer, try stores which give cash for goods. Many secondhand stores and flea markets are always looking for new (to them) items, and will hand over on the spot if they like your wares. Just be careful to avoid consignment stores. These try to sell your item for you, but you might not see the cash for weeks.
Get A Cash Injection
Payday loans have been demonized in recent years, usually by people wealthy enough to have never had to use them. These types of loans are meant to bridge the gap between your financial shortfall and your next wage; when you receive it, you pay back in full.
What they are not is a way to borrow money for anything you want, when you know full well you won’t be able to pay it back. Then the costs can spiral.
If you use them for their intended purpose, however, payday loans can be a lifesaver. Go with a reputable company such as Tide U Over, and ensure you work out your budget so you can pay back in time. With much lower loan criteria than traditional banks, these companies can be a lifeline.
Ask For Help
It’s the last option because it’s almost always the least attractive. No one wants to dent their pride and have to ask friends or family for help. However, if you have exhausted the options above, it might be worth trying.
How you phrase it is everything. Ensure the person you are asking knows this is an unexpected expense that has come out of the blue. Explain how you intend to pay them back and agree to a written deal that you both agree. It’s not legally binding, but it should stop any arguments about the terms in future.
Finally, the best thing to do once the blip is over is to investigate prevention of the same situation occurring. Start to set aside a small percentage of your wage every month as a rainy day fund. It doesn’t have to be a lot, but you’ll be thankful for it if you need it.