Tips for Dealing with Unforeseen Financial Emergencies

Few things are more frustrating than unforeseen financial emergencies. Even if you have robust savings, a single medical issue, home repair or automotive problem can bleed you dry financially. While there’s no way to completely dispel the sting of such emergencies, there are numerous steps you can take to lessen the fiduciary blow. So, the next time you find yourself faced with a financial emergency, put the following pointers to good use.

Don’t Shy Away from Negotiating

Many businesses and healthcare facilities are more open to negotiating than many people think. Simply initiating negotiations with certain institutions can result in a large amount of your debt being forgiven. For example, many hospitals and healthcare centres have comprehensive financial aid programs, and since these programs generally aren’t advertised, speaking with a financial aid representative can be a truly enlightening experience. Depending on your insurance and financial situation, you may be eligible to receive steep discounts or outright debt forgiveness. As previously stated, healthcare facilities generally don’t actively promote these programs, so the onus is on you to take the initiative. At the very least, most facilities will work with you to hammer out mutually agreeable payment plans.

Reach Out to Friends and Family Members

No one relishes borrowing money from friends or family members. In fact, the situation can be so awkward that many people would sooner face financial ruin than reach out to loved ones for assistance. However, if your options are limited or your savings are nonexistent, requesting a loan from a trusted friend or family member maybe your best course of action. If you don’t know when you’ll be able to repay a loan from a loved one, it’s imperative that you be upfront about this. Agreeing to a repayment plan that you know is unfeasible can place a tremendous burden on an important relationship – and possibly even result in a lawsuit.

Alternatively, if you own a home, you may want to consider taking out a home equity loan. New Jersey residents dealing with financial emergencies would be wise to start perusing NJ home equity loan rates.

Cut Spending in Nonessential Areas

When grappling with financial hardship, many households go into belt-tightening mode. While you shouldn’t cut back on essentials like food, toiletries and auto maintenance, decreased spending in other areas can prove incredibly helpful. For example, spending less on entertainment, dining out and other frivolities stands to save you hundreds a month and help you make a sizable dent in any outstanding debts, thereby alleviating your financial burden.

It’s no secret that financial emergencies have a habit of popping up at the worst possible times. Since many Americans lack massive savings, a single emergency stands to leave the average household drowning in debt. However, while weathering such incidents can be difficult on a number of fronts, getting through financial emergencies is by no means impossible. The next time an emergency rears its head, taking the previously discussed measures can help get you through the worst of it.