When it comes to finances, many would rather turn the other way than talk about their own. In fact, six out of 10 Americans don't have the funds to cover an unexpected expense of $500.00. That classifies a broken washing machine, new winter tires, or a doctor's visit the start of a financial emergency. This should scare you if you fall into the 60 percent.
The best way to overcome this problem is to hash out a financial emergency plan. This is intended to help you take the appropriate steps towards improving your financial situation in the event an emergency happens. We are sure that you have experienced the fear and uncertainty of financial stress at some point in the past.
Needless to say, it doesn't always put you in the right frame of mind and you tend to make decisions based on the immediate future as opposed to the long-term. This can be extremely detrimental to your future finances in the long run. In fact, it will make getting out of debt much harder to accomplish in the future.
What Classifies As A Financial Emergency?
The term financial emergency can mean different things to different people. In general terms, all of the following are mutually considered financial emergencies:
- Unexpected Job Loss
- Unexpected Dental or Medical Bill
- Unexpected Travel Expenses
- Unexpected Vehicle Expenses
- Unexpected Home Repairs
As you can tell, all of these expenses are considered unexpected. That's what an emergency is. You have an expense that was not planned in your budget that disrupts your financial well-being.
Items To Include In Your Financial Emergency Plan
Navigating through a financial emergency is not fun. You should have your plan clearly outlined so that you can pull it out if the unexpected ever happens. Let's take a look at some important items that should be included in your financial emergency plan to ensure the long-term health of your financial well-being.
Cancel Non-Essential Expenses - When it comes to discretionary, most people forget the definition. No, you don't need your Netflix subscription or your Amazon Prime membership to live. These are discretionary expenses that can be cut in the event of financial upheaval. Yes, life may not be as exciting, but you will not be bankrupt.
Lower Essential/Contract Expenses - Talk to your creditors and see if they are able to lower your monthly payments. For those accounts where you are locked into a term agreement, such as a cable bill, try to downgrade your service level to receive a lower monthly fee.
Rework Your Budget - Once you hopefully eliminate and lower some of your monthly expenses, it's time to rework your budget. Yes, it's painful to try and face the reality of what you owe compared to what you have, but you must do it. You will be surprised at how much better you feel when you actually know where you stand.
Apply For Unemployment - In the event of a job loss, you should know how to apply for unemployment in your local area. This will help to keep you calm when you are under the immense stress of a job loss.
How To Get Quick Funding
When a financial emergency happens, you may need to come up with some cash quickly. If you don't have enough in your savings account or you don't even have a savings account, you need to have some options laid out. Let's see what these different options may be.
Ask Family or Friends - Although this may not sound like the most satisfying thing to do, sometimes you will need to bite the bullet and ask your family or friends to borrow some money. This can typically provide you with an interest-free loan or a very small borrowing fee that will be cheaper than you can get from a qualified lender.
Title Loans In Texas - We know what you are thinking "Are Texas title loans a good idea?" The truth is they certainly can be when used correctly. Just like any form of lending that you opt for, you are responsible for paying back the loan according to the terms agreed upon by you and the lender. A title loan can get you fast cash in Texas when you are navigating through a financial emergency.
One major advantage of a title loan over many other forms of lending is that we don't check your credit history. Traditional banks and even credit card companies will check your credit score to determine your financial risk before approving you for funding. With title loans, you are using your car title as collateral, which creates a secure loan for us. This greatly reduces the risk we take on, which means we can approve you even if you have less than perfect credit.
When you are faced with navigating through a financial emergency the best thing you can do is ensure your financial decisions are in line with your future goals. Don't make decisions based out of scarcity. Instead, understand the options that you have available to you and ensure that you are able to follow through on any financial commitments you make.
How Title Loans Can Help You in an Emergency
If you have found yourself dealing with a bit of a financial emergency, you could be wondering what you can do to make your situation better. Luckily, if you look for auto equity loans online, you can get the help that you need. These are some of the ways that title loans can help you in an emergency.
Get Your Money Fast
First of all, perhaps one of the main reasons why a title loan is a good idea when you are dealing with an emergency is the fact that you can get your money fast. If you are dealing with an emergency, the last thing that you probably need is to have to go through a long application process. Fortunately, you should be able to get approved quickly.
It's Easy to Get Approved
Another good thing about title loans is the fact that you can get approved easily, even if you have bad credit. Emergencies don't just happen to people with good credit scores, so it's good to know that you can get approved even if your score isn't the best.
It Can Be Used for Anything
Title loans can be used for anything. You don't have to get approved to use the money for a certain thing. This can be helpful because you can use your title loan cash for any type of emergency that you might be facing.