Life can get hectic, and sometimes it’s challenging to keep up with expenses and budgeting. When we are under so much pressure and not enough time, we can forget to plan for the future. An unplanned expense can be anything that happens outside of the norm and can hit us, like the word says, unexpectedly. It doesn’t mean we are bad people or will never be able to pay our bills again. It’s just that life throws us curveballs from time to time.
There are always ways to deal with these unplanned expenses, such as having a personal line of credit, but planning and foresight will require. Here are a few unexpected costs that can happen to you.
1) Job Loss or Layoff
The most common reason people end up in debt is a job loss or a layoff. It can be distressing to worry about how you will pay your bills or if you will be able to pay for your car payment. You may have health problems or a family member might get sick. These are all everyday events in life, but they can still make it hard to pay bills.
If you have a job loss or a layoff, you can do a few things to keep yourself from debt. First, make sure your accounts are updated and taken care of. Leave a little bit of wiggle room in your budget so that you aren’t caught with a sudden expense. Second, have a savings or emergency fund to fall back on if needed. It’s good to have a cushion to fall back on if something unexpected happens.
2) Car Accident
Sometimes we get into accidents that may or may not be our fault. This can cause severe damage to our car, leaving us with a no longer driveable vehicle. It may be worth fixing your vehicle and paying for the repairs in some cases. This is especially true if damage to the car cannot be selected for a reasonable amount of money.
If the accident left you with a vehicle that cannot be repaired, it’s a good idea to try to get everything owed to you. You can contact the other driver’s insurance company and work out a plan or keep a log of everything you are owed.
3) Medical Emergency
Health emergencies can happen at any time. If you have medical bills coming up, try to get as much help as possible before it happens. Try to get a discount from your hospital, health insurance company, or a charity organization. If you can’t get any help before the bill comes in, try to file the statement as soon as possible. Try to get information about reducing the bill amount or contact the billing office and explain what happened.
4) Child Care Crisis
It can be cheap to get blindsided by large childcare bills when your children are toddlers. Try to keep track of all of the time you spend going to childcare or work that is missed out of your schedule. If you have to change your plan to fit in the care, try to get help with the bill to make it easier on you in the long run. Try to get a discount, ask for use with the statement, or ask the provider if they will be willing to help you.
5) Irresponsible Lending Situation
Sometimes friends or family members will give you money or ask you to loan it to them. This can be tempting because you may think you can get it back later or don’t have to pay it back right away. It’s good to keep track of any loans or debts to know how much you have to pay each month.
Try to get a loan agreement that will allow you to pay it back over time. It’s also a good idea to have a savings account that you can fall back on if you can’t pay the bill. Try to keep as much money as possible in your savings account to cover unexpected expenses without debt.
When we get blindsided by an unexpected expense, it can be hard to cope with the stress. The best thing to do is the plan for these events in advance. Try to keep up to date on bills and make sure that they are paid on time so that you don’t get blindsided by an unexpected account. You can do things to prepare for these types of expenses.