An Option for Sudden Expenses
Unforeseen surprises might follow even the surest of things. By acquiring a loan with a set rate, you can pay for unexpected costs while saving money.
Unplanned or emergency expenses can leave even the credit-savvy consumer searching for answers. Speeding up the lending process by being organized, identifying lenders who may be out of your comfort zone or embracing online technology are options for gaining approval for a personal loan to assist with unforeseen expenses. A personal loan is an unsecured loan that is supported only by the borrower’s creditworthiness. That is, it is obtained without the use of collateral. Personal loans can be used for those expenses that roll into your day without any warning. It might be the cost of a car engine that quits on the freeway or travel expenses for a sudden but necessary trip. You can be a pretty good money manager and still experience the occasional event that throws you off your plans. The washing machine that was going to last 20 years? Sometimes it gives up as soon as it’s out of warranty. And sometimes life presents opportunities that are too good to pass up—too good even if they aren’t in your budget right this minute.
Life Happens Unexpectedly
There are so many daily expenses we have as humans that sometimes it’s difficult keeping track of everything. There are monthly bills we are responsible for with due dates. There are looming deadlines that hang over our heads and constantly remind us that we should pay for them.
There are also such things as unexpected expenses. They are called “unexpected expenses” because the situation that arises was completely unforeseen. In other words, you aren’t prepared for an unexpected expense and that’s why they are so much more inconvenient.
These sorts of expenses often come at the wrong times. There is never a right time but it’s particularly difficult when you have a lot of other things going on in your personal or professional life. It’s never going to be the right time to pay any amount of money for any kind of expense. So, it’s all that more inconvenient when the situation arises out of nowhere.
If an unexpected expense has come up for you, you may consider an online personal loan. These are no-collateral loans, which means you are putting up any property or assets. They offer loans in the range of $1,000 to $40,000, so whatever you need additional funding for, chances are you are covered. They are highly flexible as well, so the funds that you borrow can be used for whatever reason you desire. That’s particularly helpful because oftentimes we don’t know what sort of expenses will come up in life.
They are registered for entirely online. This means you can stay in your home and apply or do so from your phone. In this sense, when life treats you with an unexpected turn, at least registering for an online personal loan is convenient. Please use personal loans responsibly.
Other Options For Unexpected Expenses
Emergency fund: Do you have an emergency fund? It’s a stash of money reserved for the blips on life’s radar; if something unexpected happens, you have money to draw from. An emergency fund usually amounts to three to six months’ worth of expenses. This should be the first place you look. Hopefully, you’ll have enough saved to cover the cost, then you can slowly restock the fund over time. Still, what if the expense is much more than your emergency fund can cover? Well, unless you have a friend or family member who could lend you a helping hand, you’ll have to look elsewhere to cover the rest.
Credit card: Your first instinct might be to pull out your credit card. It can certainly help, but stop and think before charging a large expense. Will you be able to pay it off entirely by your bill’s due date? Credit cards typically carry high-interest rates, so if you can’t pay it off in time, you’ll only be trading one stressor for another — credit card debt. But if the expense is manageable enough, then using a combination of your emergency fund and a credit card can be your best and lowest-cost option.
Home equity: Are you a homeowner? If so, you may qualify for home equity lending options. By allowing you to borrow against the equity in your home, financial institutions can lend you larger sums of money, typically at a lower interest rate. You can calculate how much equity you have in your home by taking the present appraisal value of your home and subtracting the outstanding principal owed. So if your home appraises for $300,000 and you have $200,000 left to pay off, then you would have $100,000 of equity in your home.
What you need to remember: Don’t let the stress and emotion get the best of you. Do your research and find the best way to pay off these types of expenses so you’ll be in a better place to avoid making an impulsive decision that wasn’t in your best interest. Do your homework to find the option that makes the most sense for your situation.