7 Tips For Handling Unexpected Bills That Pop Up
If you're among the 22% of Americans who have no emergency savings, you'll have to consider other ways of paying bills that are outside of your budget.
When an unexpected bill pops up, consider options like these.
BORROW FROM A FRIEND OR FAMILY MEMBER
If you’re in the position to borrow money from a close friend or family member, doing so can help you save money in the long run. They may not charge you interest, or may charge at a less high rate than other options. Just be sure to discuss your repayment timeline so you’re on the same page.
SELL SOME ITEMS
A great way to make money quickly is to sell items you no longer need. Are there appliances, gym equipment, furniture, or clothes that you’ve been meaning to get rid of but haven’t yet? List them on an online marketplace or hold a garage sale.
CONSIDER A HOME EQUITY LINE OF CREDIT
Tapping into your home’s equity can help you pay for unexpected bills. With a home equity line of credit, you’ll be able to get the money you need when you need it. With a HELOC from INOVA Federal, you’ll have low interest, making this a good option to pay for expenses you can’t push off.
ALTER YOUR CURRENT BUDGET
When possible, make changes to your budget and lifestyle to be able to afford your new bills. This could look like pausing weekly dinners out with friends, eliminating impulse buys, or canceling subscriptions.
GET A PERSONAL LOAN
Personal loans are for personal needs, making them a great option in a pinch. At INOVA Federal, we’ll work with you to set repayment terms that work for you. You can easily access your funds online, by mobile banking transfer, or by using the automated Tellerphone system.
SET UP A PAYMENT PLAN
Depending on the type of unexpected bill that pops up, you may be able to set up a payment plan. By paying smaller amounts of what you owe over time, you can more easily adjust your budget to make those payments realistic.
USE A CREDIT CARD
Using a credit card to pay an unexpected expense can impact your credit score, but when there are no other options available to you, it’s a way to pay the bill. Just make sure you understand your credit limits and the terms of your card — maxing out a credit card will worsen your financial situation.
INOVA CAN HELP
When you can, get ahead of unexpected expenses by building an emergency fund. At INOVA Federal, we can help you manage your finances and get on a path to having an emergency fund.
Check out our website or stop by one of our locations to learn more about financial education and the options available to help you pay unexpected bills.