Sometimes it can happen that an unexpected expense sends your finances into chaos.
When this happens, you may think that you are going to have to make some serious sacrifices to be able to pay the unexpected bill, or that you may even be unable to pay it at all and risk sending your credit rating into a worse state.
However, there are options open to you when you find yourself in this situation, and by reviewing them you should be able to find the best thing for you to do to be able to pay your bill or meet the expense without too much stress and pain.
Here are some of the things you can consider doing:
Borrow Money from Friends or Family
It may not be an option for everybody, however if you do have somebody in your life who you trust and who would be able to afford to lend you the funds, then it can be the cheapest way to get the money you need without having to part with anything you own or put in extra hours working. You may even be able to arrange with the person who lends you the money to pay it back in instalments with no interest, and you should be able to agree on something that suits both of you. Naturally, borrowing money from friends can put a strain on relationships if you commit to borrowing something you do not know for sure that you will be able to pay back on time. Be certain when you are asking to borrow money that you give a realistic idea of when you will be able to repay your debt and be sure that you are only asking people who you know will be able to lend you the money without too much personal inconvenience.
Sell Some of Your Old Stuff
Another option that can work very well is to make the money you need by selling some things you no longer want. Most people have some stuff lying around that is worth money to someone else but which they no longer need. How you sell your unwanted items depends how quickly you need the money. If you want to sell it fast, you may find that you can use Facebook groups for your area which deal with people buying and selling second-hand items. If you can afford to wait a little bit longer, then you will often get a better price by selling your items on eBay or by going to an organised local sale. Another option is, of course, to pawn your items or try selling them through a second-hand shop.
Take Out a Loan
Taking out a loan is the third option. However, you will have to pay interest, so be sure that you only consider taking out a loan for as much money as you need, rather than taking out a loan for a greater amount just to have a little bit of extra spending money. If you can get good credit products, then you will find there is a wide range of options available to you.
However, even people with bad credit should be able to find affordable loans that can help meet unexpected bills and other expenses when needed. You will find that bad credit loans are available if you’ve been refused one by a bank/lender which are designed to help people in that situation.
Bad credit loans are more expensive than loans available to people with good credit rating, so it is worth bearing in mind for the future that looking for ways to improve your credit rating may help you out if you find yourself in this situation again.
Find Extra Work on the Gig Economy
Another option that you can consider if you have a little bit of time in which to make the money that you need, is to take on extra work using the gig economy. The gig economy is where you use your time or existing skills to do casual work such as driving or delivering food, or you can get gigs doing things like tutoring, babysitting, pet sitting, or freelance internet work doing things like writing blog posts, or data entry. You can make money quite quickly by doing this, but it is only really an option if you have free time to commit to doing this kind of work. You may also have to wait for payment, so it is not a great option if you need the money immediately.
As you can see, there is no need to panic if you have a bill you cannot pay, and you can consider all kinds of ways of raising the funds using your skills, selling existing things that you have or taking out loans with a bank or someone you know. Just be sure that you are able to commit to the thing that you choose to do, whether it’s in terms of time, or in terms of being able to repay debt.
