Those of us that are expert budgeters still get caught out from time to time by expensive unforeseen disasters. This could be anything from an expensive car repair to an emergency operation to a busted water pipe. The easiest way to pay for these disasters is to take out an emergency loan. But this means putting yourself in debt and potentially paying a huge amount of interest that you wouldn’t have had to pay had your prepared beforehand. You can’t prepare financially for all disasters, but some can be anticipated. Here are just a few ways to afford disasters without sinking into debt.
Invest in preventative measures
Many disasters can be made cheaper by spotting the warning signs. If you’ve got a toothache, don’t keep putting off a visit to the dentists – you may end up shelling out for root canal surgery for something that could have been cheaply cured with antibiotics a month ago. Similarly, if your car’s making weird noises or acting up, get it seen to there and then – replacing a small worn part early could prevent wear and tear to other parts and even prevent an accident. Various security and health and safety methods can also protect you. It is possible to go overboard with preventative action, but with enough common sense, you could be paying less in the long run.
Insurance companies will pay for out-of-pocket costs in return that you pay a small regular fee. Some are compulsory such as vehicle insurance, but others are optional such as property insurance and health insurance. There are lots of different insurance schemes out there as sites like https://www.marketreview.com/insurance/ show – in fact, you can pretty much insure yourself for anything. There are lots of tricks for lowering rates such as raising your deductible and taking out group insurance schemes. Always shop around to get the best rate.
Start a rainy-day savings account
A far better solution to insurance is a savings account. This can be used for any emergency cost you require – by putting in a special savings account it can gain interest, making you some money. Ideally, a savings account should have at least a grand in it. It could simply be a solution to paying off an insurance deductible. Just make sure that you only dip into it for emergencies!
Get help with crowdfunding
It’s possible to afford expensive surprise costs by relying on the generosity of others, although may not be ideal in an emergency. If you need to afford medical treatment or repairs to your home due to storm or fire damage, starting a crowdfunding campaign using sites such as https://fundrazr.com/ may allow you to afford costs. This is generally only a solution in a serious situation where people are likely to take pity on your cause – it’s unlikely you’ll get money to repair a leaky roof or get your tooth repaired.
Use zero-interest borrowing strategies
If none of the above methods are enough to cover costs, borrowing may be your only option, but you should still consider minimising the debt however possible. There are credit cards exclusively for medical costs that charge no interest and zero-interest loans for theft cover. Search for these no interest borrowing strategies or aim to lower interest as much as you possibly can.