Much of the time, an unexpected financial setback is seen as a teachable moment; you find yourself in a cash flow crisis and someone – potentially you – sees it as a chance to lecture you. “This is why we plan”, goes the logic – as though you haven’t been planning. Sometimes, despite the best-laid plans, you still find yourself in a financial pickle. Because life doesn’t play along. The stars do not reward careful planning, and life isn’t fair – so being ready for those moments means accepting that you can still end up needing help.
The boiler breaks or the roof leaks
Or both, because sometimes it doesn’t rain – it pours. Home repairs have a nasty habit of arriving unexpected and uninvited, and they generally can’t wait until payday. If there’s a hole in your roof, it needs to be fixed now whatever your bank balance may be. The first thing to do is consider whether you have household insurance; if you do, it will usually cover emergency call-outs. If the boiler is still under warranty, you may be able to arrange a repair at no cost.
But if none of these failsafes apply, you may need to fund it out of pocket; get at least two quotes before committing to a contractor, and in the meantime call your bank. They may be able to extend a temporary overdraft to cover emergency costs.
Car trouble when you can’t afford it
Whether a failed MOT, a breakdown out of nowhere, or a break-in that has done damage, sometimes situations arise that put your car out of commission for the immediate future. And if you rely on your vehicle to get to work, or get the kids to school, the cost becomes urgent. In these moments, having some financial flexibility can make all the difference. If your contingency fund has been tapped dry, you may be looking at a $500 loan now to get things back on track. What matters is that you make a calm, informed choice and check all the terms ahead of signing up.
Vet bills that can’t wait
Pet emergencies are never welcome. Humans may have free options for healthcare, but for pets the costs can be significant – and yet who among us could bring themselves to do anything but the best for our furry family members? Many vet practices offer payment plans or staged billing, so do ask about these at the time of treatment. It helps if you can fund some of the cost out of pocket right away and this may allow you some room for negotiation on the terms of any plan.
Emergency travel
Having to be somewhere else in a hurry isn’t a pleasant situation: you don’t have many options as to how to get there, you have to pay the price that you’re given, and you don’t really have time to think. Emergency travel usually arises in an emotionally fraught time: family illness, bereavement, or an intractable situation that requires you to be “on the ground”, so our reaction is usually along the lines of “Whatever it takes”, which usually translates as “However much it costs”.
As well as weighing up whether you have the money in savings, can borrow from a friend, or need to consult a lender, speak to the travel provider. Some carriers offer compassionate fares for people in family emergencies, which can represent as much as a 50% reduction.
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