It happens to the best of us, getting behind on bills or accidentally missing a payment. Sometimes it can be a financial strain when something unexpected comes along and you struggle to pay for it. These unexpected expenses can be paid for through the help of family or friends, until you have enough to pay it back. Or there are other options like short term loans that are quick to take out and you can payback in instalments. Before taking out any loan, be sure to do your research first on interest and how long you have to pay it back.
So, what type of unexpected expenses are we talking about here? We’ve highlighted a few below.
Car repairs
If you need your car for commuting or to take the children to school, it can be difficult to get by without it. Unexpected car repairs or breakdown can cost a lot of money to sort out.
Home improvements
Items in the house get a lot of use and it’s normal for things to break. Sometimes you might find that everything breaks at once, creating a financial strain on you. If you need to purchase a new appliance because the old one is broken, taking out a loan to purchase this can sometimes be cheaper than financing. It’s also good to know that getting your boiler serviced yearly reduces its chances of breaking down and is a cheaper job than purchasing a new one.
Paying for a life event
Money plays a huge role when it comes to big events – from weddings and funerals, to once in a lifetime experiences. For weddings and trips, we start saving prior to the date, but sometimes you may have to pay a little extra if something goes wrong… or if you’ve forgotten to pay for something.
Improving credit score
Taking out a loan and paying it back on time could help to improve your credit score, especially if you’re looking to make a huge financial purchase in the future. Your credit score helps to give you the best car and mortgage deals so it’s important to increase this number. Paying back monthly instalments on time shows that you handle them responsibly.
Short-term loans are just one way to finance an unexpected expense, especially f you know you can comfortably pay back the amount borrowed. However, look closer to home first and ask friends or family. Always do plenty of research before borrowing money.
