Life is unpredictable, and it often proves this by throwing up unexpected expenses. Weirdly, dealing with money issues you didn’t know existed is one of the more unsurprising features of being an adult. Even though they are a surprise, they’re not because you knew the day would come. It’s a percentages thing.
Now it’s here, only you can pay it off. No one else is likely to put up their hand and take the responsibility from your shoulders. The problem is there isn’t enough money in the pot because you’re already living from paycheque to paycheque.
Eliminating these expenses sounds tough, and it is, yet it’s not impossible. Here’s what you need to know.
You Can Freeze It
Almost every debt you owe won’t have a freeze button. The creditor wants their money and they want it before a certain deadline or else they’ll charge extra. Telling them you can’t afford it right now so you’ll have to take a break is a novelty. But, it’s not a myth because a mobile provider might offer you the option. A new mobile network wants to stand out from the crowd, and they provide great deals to do this. Being able to freeze a contract because there isn’t a minimum-term contract is one such feature. Check your contract for more.
Interest-Free Credit Exists
The majority of credit comes with caveats. Sure, a bank will lend you the money, yet it’ll cost around £2,000 more for the privilege. Nobody can say they’re nothing if not fair. Thankfully, not all loan deals are as extortionate as traditional forms of credit. For example, a credit card might have 0% for the first two years. So, you can use this deadline to pay off a debt in the short-term and pay off the money in the long-term. And, because you can transfer the balance, there is a level of flexibility.
This Is What Emergency Funds Are For
You’ve been putting money away for a rainy day and none have appeared as of yet. There have been a couple of bumps but nothing serious. Well, this is a roadblock which needs dealing with, and your emergency fund is the perfect option. Although it takes a while to build up three months’ worth of salary, you can do it again. After all, you might only need to use £1,000 or less. It’s nice to keep a rainy day fund full for the kids’ future, but only if you can get by financially.
You Can Ask Your Family
Everybody runs to the banks and private lenders when they need money because it seems like the adult thing to do. However, the grown-up option is to leave your ego by the door and consult with your parents or siblings. If they have the cash to spare, there’s no point putting your finances at risk for the sake of awkwardness. With a family loan, there are zero interest repayments; just the total amount you need to pay back.
A word of warning: be careful of assuming. The family should always draw up terms to make sure everyone is on the same page.
Disclosure: This is a featured post.