Sunday, December 7, 2014

How To Find The Money to Pay For Unexpected Expenses

Unexpected expenses are a fact of life. From medical bills to home repairs, the one thing you can anticipate is that bills will pop up. When that happens, creative ways to find money to pay for them can mean the difference between barely skating by and moving on with life.

Yard Sales

Yard sales may not seem like a sound way to make extra money, but if you have a large quantity of unused items, selling them will add up. Some people report earnings of several hundred dollars, simply by selling the clothes and small items they no longer use.

Selling Household Items Online

There is a brisk market for unwanted household items online. Sites like Craigslist exist primarily to help you do just that and recently, localized Facebook groups have seen surges in membership as people buy, sell and trade their items among others in their communities. 

Emergency Funds

If you have an emergency fund, consider the wisdom of using it for your current unexpected expenses. Emergency funds are an excellent way to hedge against the uncertainties of life, so if you have not done so already, consider this an opportunity to start by saving even five or ten dollars per month.

Find Out if You Really Owe

You may be able to negotiate your expense. Contact the company you owe and find out if they are willing to lower the price for a cash deal or haggle on some of the costs. This can be particularly true of service and medical bills.

Refocus Priorities

When funds are short, cutting the budget in areas with some leeway, such as entertainment, dining out or clothing expenses, can give you the money now to tackle that extra expense. Cutting those areas rarely causes long term issues but can give you immediate relief with bills.

Home Equity Loans

If the expense you need to cover is higher than the other methods can help with, consider a home equity loan. This allows you to capitalize on the equity you have in your home to create a cash flow, often at very affordable interest rates.

When you look around at your assets, you will find that there is almost always a way to find money to pay for unexpected expenses. With a little creativity, you can handle a bill you did not anticipate and enjoy the satisfaction of paying off a debt.

Informational credit to The Mortgage Centre.

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