Life is full of unexpected surprises, some of them unpleasant. Medical bills, car repairs, and ill pets are just a few common unanticipated costs. What are your options when you need money quickly? Here are five ways to pay for unexpected expenses.
5 Ways to Pay for Unexpected Expenses
Selling Personal Items
Perhaps the most readily available option is selling personal items. Furniture, valuable items like jewelry and tech, as well as appliances can all be sold for profit. You can choose to use an agency or sell your items yourself.
Pawn stores and consignment stores can help you sell your personal items. However, they may take a cut of the profit and might list your items for lower than you had hoped. Personally selling your items through online marketplaces, resale groups, or word of mouth can net you more money but may be time-consuming.
Selling your personal items isn’t always easy or fast, but it does allow you to determine the profit by setting your own price. Additionally, you may have to sell quite a few items to cover your unexpected costs.
Reducing Expenses
Sometimes you may be able to reduce your expenses by creating a budget. Reviewing your lifestyle to see if there is anywhere you can eliminate expenses may help. For example, skipping your morning visit to the coffee shop and canceling your gym membership. Pinching pennies and cutting back on extraneous expenses may help you cover your surprise bill.
However, sometimes it isn’t possible to cut enough corners. Budgets can be inflexible and reducing your expenses may not provide you with all of the extra cash you need. Additionally, you won’t see returns immediately. It may take a month or more to slowly build up your savings account.
Reaching Out to Family & Friends
If you receive an unplanned bill, reaching out to your family and friends to help cover the cost can net you cash fast. If your friends and relatives have the money to loan you, chances are they will provide it to you quickly.
Unfortunately, your loved ones may not always have money available to give you. Whatsmore, taking out a loan from your family and friends can be awkward and place you in an uncomfortable position. Whether you don’t want to ask, or your relatives don’t have money to offer, there is no guarantee with this method.
Look for Ways to Earn Extra Cash
There are a variety of ways to earn extra cash. Maybe you already have a side hustle, or you can ask to take on extra hours at your job. Signing up for part-time jobs, such as being a personal shopper, is often quick and painless. You could even check out babysitting or selling handcrafted items.
But much like selling your personal items, working odd jobs to make money doesn’t always result in extra cash fast. You may spend a lot of time working only to earn a portion of what you need. Occasionally there aren’t any opportunities to earn extra cash, which could leave you looking for alternative ways to pay for your unexpected expenses.
Take a Short-Term Loan
There is no guarantee that you will receive money quickly with any of these methods. However, taking out a short-term loan is perhaps the most simple and straightforward way to obtain cash fast. However, financial institutions may not be willing to lend you the money, and taking out a credit card should be a last resort. Thankfully, in most states, payday loans are an available option.
Payday loans are short-term loans in which a lender provides a small amount of cash expected to be paid back within days to weeks. Payday loans often don’t require a lengthy application process or an extensive background check. You can use websites like GreenStarCash to figure out if payday loans are legal in the state you reside in.
If payday loans aren’t available to you, you can consider a car title loan or a short-term installment loan. However, these methods aren’t as simple. Car title loans use your car as collateral, therefore there can be serious consequences if you fail to pay back the loan. Additionally, not all cars may be considered due to their value.
Short-term personal installment loans require scheduled payments and generally have a fixed interest rate. Because they are commonly issued by a financial institution, they can involve credit checks and a detailed application process. Additionally, if you have poor credit a loan may not be extended to you.
What Is Your Best Option?
Ultimately, how you choose to cover an unexpected expense depends on your preferences and what resources are available to you. Some methods are more difficult and time-consuming than others. A few methods may net you a fair amount of cash quickly but can carry high interest rates. Once you have covered the expense of your immediate unanticipated bill, it is a good idea to plan for future surprise costs.
