Life is full of unexpected twists and turns, and no matter how hard you try, you can't always be prepared for every monetary stumbling block that may suddenly appear in your path. Your car may break down unexpectedly, your best friend might plan a destination wedding, or your dog may fall ill because it chowed down a batch of chocolate chip cookies. Whatever the reason, suddenly you are hundreds, even thousands of dollars in debt.
So what are the best ways to deal with these financial emergencies when they suddenly crop up and threaten to undermine your happiness? Here are a few tips on things you can do when you are faced with unexpected expenses.
Assess the Expense
Is the debt you're looking at a necessity or is it something you can do without until you have more money? For instance, you may really want a new phone because yours has a crack in the screen. Other than that, it is working fine. If you are broke, it is better to save up the money and purchase a new one later than it is to buy one now on credit and hope you can pay it off in the long run.
Find Alternative Funding
Do you have a credit card that you have been accumulating points on? Maybe you can pay for that plane trip for your best friend's destination wedding with your points. Depending on the credit card, you may also be able to use your points to pay off part of your credit card balance or purchase gift cards that could help pay for a wedding present.
Check to See if You are Covered Under a Warranty
Don't let broken electronics, a car, or another big-ticket item throw you in such despair that you forget to check its warranty. If an expensive item breaks within a year or two, it doesn't hurt to check whether the item is still under warranty and, if it is, then have the manufacturer fix it for free.
Get a Secured Loan
There are times when you just need to take a secured loan out. Loans are a good way to cover a debt when you know that you will have money coming in soon that you can pay it off with, and you just need a temporary financial band-aid.
Get Rid of Unnecessary Expenses
If you really don't go to the gym that often but have been paying a monthly membership fee, maybe it's time to cancel this expense. Don't forget to also look over your monthly bills to see if there are any extravagances that you really don't need any more. Do you really watch all of those premium cable channels or have you not seen turned them on in months? What about your telephone bill? Go over that with a fine-toothed comb to make sure there aren't any hidden fees in there that you didn't know about or if you can reduce the number of minutes you're paying for.
Don't let unexpected expenses ruin your life. Many times, you will be able to find ways to offset these expenses almost painlessly and with surprisingly little effort.
Ethan Pearce is a freelance writer who blogs about the uses for secured loans. To apply for a secured loan, visit www.netloans.co.uk.