Most of you out there are working really hard to pay off debts you have accrued over the years. You’re probably looking forward to the day when you can start saving instead of repaying. But life has a nasty habit of throwing up some pesky problems that can only be resolved with money. Whether you need to take on extra work or you have to get a fast and expensive loan, there is nothing you can do to avoid that big unexpected bill. Not sure what I’m talking about? Check out these nightmare scenarios that need an instant cash solution:
Boiler breaks down – If you’re the homeowner, there is nobody but you to fix this problem. In your money saving efforts, you may have cut back on some of the household insurance extras like boiler breakdown cover. Unfortunately, when the boiler dies, you have no choice but to get it fixed quickly, especially with kids in the house. The costs you’re looking at can include emergency plumber call out charges, hourly labour rates of approximately £75 per hour, and then the parts. Plumbers always need to come back as well because they never seem to have the parts in the van!
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Broken window – It may be a storm, or it may be a child’s temper tantrum that causes the window to smash, but it needs fixing immediately. Not only will your home be liable to weather damage, but your property is not secure until that pane is replaced. This is another emergency call-out charge I’m afraid. You will need to cover board hire (yes, hiring a chunk of timber to block up the hole), and then the glass plus fitting. Many insurance companies will not cover any of this if they deem it to be your fault.
Cold winter – It is not advised to skimp on the home heating in sub-zero temperatures. If your room temperature is below 18 degrees centigrade, you can be more prone to illness and medical complaints flaring up. If you let the home freeze, your pipes may burst, costing you thousands in repairs and replacements. If it’s cold, you’re just going to have to find the money from somewhere to cover the heating costs. The first point of call on this one is the utility company to let them know you may struggle with the next bill. They may be good enough to arrange a payment plan to help you out over winter.
Emergency travel – If a relative falls ill, you want to be with them. If it happens suddenly, you may have to drop everything and travel hundreds or even thousands of miles to get to them. There’s no buy now pay later with air, sea or train travel. All travel, especially last minute bookings, is expensive. This may be one of those occasions when you are going to have to ask the boss for an advance on your salary. If you’ve used up all your favours at work, or it’s just against company policy, then you may need to look into Payday loans online. You’re going to need open return tickets, plus hotel accommodation and restaurant food money.
Car accident – Insurance often covers us for a car and breakdown cover. However, some insurers won’t help you with anything if an accident is your fault. These things do happen, unfortunately. On top of any work-impacting injury, you may be left with no vehicle for getting about. You may be thinking of public transport as a viable and cheap alternative. But you’ll be hit immediately for an expensive tow truck and insurance excess charges.
Domestic appliance breaks down – Most of the time it is cheaper to buy a new one than pay for someone to come out. If you think it’s worth it then have a look at trying to repair the old one. If it’s out of warranty, you may have to accept a bill for a new item. There are companies that let you rent or buy on credit, but if you’re trying to stay out of debt you may be in two minds about doing that. Some appliances can be put on hold, like the dishwasher or tumble dryer. However, you can’t live without a fridge freezer, so some money is going to have to come from somewhere. Don’t forget you’ll need to replace the lost food too.
Job loss or unable to work long term – You may have all your repayment plans figured out, but then your income takes a drop. This may be from pregnancy, long term illness, or a shift in the company’s staffing plan. Do you have a backup plan if your income drops? Once you’ve been in debt, you know what living within your means really means. But living on benefits with debt repayment commitments is impossible. Borrowing money from banks is also impossible when you have no permanent work. You may be asking for help from your parents. If you don’t have money stashed for this kind of emergency, you need to have a plan for coping if it happens.
Bereavement – Should you lose a loved one, the last thing you will be thinking about is money. Unfortunately, funerals cost thousands of pounds. If your loved one didn’t have insurance, you might be liable to cover the cost. Besides the burial or cremation charges, you will need to find cash for the Wake too. You may not be paid during your time off work either. It’s not fair, and it’s the last thing you need to deal with on top of everything else, but you may need to find some cash from somewhere fast.
Not all of us are in a financial position to have an emergency fund stashed away. But when you need cash in a hurry, it’s best to explore every opportunity before committing to additional debt. You might have something to sell, as heart-wrenching as that could be. You may also be able to take on some extra hours or temp work to raise some much-needed cash. Even though you may be borrowing in a hurry, try to have a solid plan for clearing new debt quickly.