If you’re in debt, you know all too well the stress that comes with a pile of unpaid bills. There are many things that happen in your life that can cause this, such as a loss of income, unexpected medical expenses or a child heading off to college. Unfortunately, more often than not, what follows shortly after is a lower credit score that only makes it harder to dig out of the mess. At that point, you’re in a full-blown financial crisis.
Luckily, there are steps you can take to recover. In the meantime, to meet your immediate demand and get access to cash to handle your emergency, you can take out an installment loan online with a company like Maxlend.com. They offer personalized cash loans up to $1,250, giving you a better option versus a payday loan. The screening process is easier than a standard loan provided by a bank and they offer quick funding and a variety of repayment options. You must have a social security number, a checking account in your name and a verifiable source of income.
When you live paycheck to paycheck and have no other source to tap into when an unexpected expense comes along, you have no choice but to remove funds from your paycheck. This causes a ripple effect that ends up making numerous bills late or missed, putting you into a financial crisis. In order to prepare yourself for life’s unplanned expenses, you must establish a savings account. This will give you a way to cover these sudden bills without pulling money out of your budget. If you deposit just a few dollars a week and then work it up to more as your income increases or you pay off a debt, you’ll grow your savings into a nest egg that you can use.
Budgeting for a Financial Crisis
It’s something you’ve heard over again, but it’s worth repeating. A budget is essential to organizing your finances and enjoying a better quality of life. When you simply pile up your bills with no plan in place or no real understanding of which ones are most important, you can’t move forward. Take a few minutes to organize your bills and then list them on a sheet of paper. Then add in your monthly income and deduct the difference. Hopefully, your income exceeds your scheduled payments. If this is the case you’ll get on track in just a few months. If, on the other hand, your obligations are more than what you bring in you’ll need to either reduce the debt or increase your income.
Prepare for shopping trips
It doesn’t matter if you are going to the grocery store or buying a shirt at a retail outlet, you need to learn to shop smart. If you live in a populous area, take advantage of having access to multiple supermarkets, since they don’t have the same products on sale. By searching through the flyers or going online you can see who has the best price for the food and household items you need. It’s also important to stick to your list and not buy items just because they are on sale.
Second hand is not always a bad thing
Buying something new is nice, but not always necessary. For instance, if you need a car why not look at those fresh off a 2-year lease. They are well-maintained and have low mileage. Plus, as an added bonus, your insurance premium is lower and if your state charges a yearly excise tax, that is less as well. The same goes for furniture and clothing. Check your paper for a yard sale, a local boutique outlet or online for a discount store. These are great ways to save big on necessary items. You’ll find that buying something the second time around can help you to make ends meet.
Whether you live alone or are responsible for a spouse and children, trying to make ends meet can cause stress that can then interfere with your life. Instead, plan ahead. Set yourself up on a budget and learn how to shop to get the best price on everything you need.