You can never predict when an unexpected bill is going to come your way. It could be due to urgent moving costs, replacing a broken-down vehicle, or paying for an emergency medical procedure. No matter the reason for the bill, there are ways to manage the situation so that you can cover the cost without damaging your long-term financial health.
Keep reading for tips on how to carefully consider your needs, adjust your expenses, and other ways to navigate a challenging financial situation in Tulsa.
Consider your financial needs
Carefully thinking through what you need is the first step in creating a plan to deal with an unexpected bill. How large is the bill? Is there a way to pay it using a portion of money from your checking or savings accounts? What if you made considerable changes to your monthly spending? Would you be putting yourself at risk for having too little cash on hand? Think through whether or not you have the resources to foot the bill before you explore other options.
Look into a payment plan
You may be able to contact the bill provider and discuss a potential payment plan if an unexpected bill throws off your budget. Some providers may be flexible on how much you have to pay back every month or they might extend the timeline to give you more runway to repay the full amount. It’s worth looking into if you are already on a tight budget.
Adjust your expenses
Making changes to your budget can be essential if you need to afford an unexpected bill. Here are some ideas to try:
- Cut back on spending. Spending less on non-essentials such as ordering takeout, buying coffee out, and paying for multiple streaming accounts can make a dent in your budget.
- Follow the 50-30-20 model. This financial model offers guidance on sorting your income into three main categories: 50% should be spent on essential items, 30% on non-essentials, and 20% on savings. Take a closer look at your budget and see if your funds could benefit from being divided this way.
- Look for local and online deals. Sometimes spending less means looking for deals on everyday items either online or more locally at big box stores in Tulsa. The more you save, the more you have to put towards your unexpected bill.
Research ways to borrow money
There are a variety of ways to borrow money if you receive a bill that doesn’t fit into your budget. Whatever you choose, make sure you think through how to pay the amount back on time and in full. Consider the following borrowing methods:
Apply for a personal loan
Securing a personal loan might be a helpful way to afford an unexpected bill, especially if you don’t have enough cash on hand or you don’t want to drain your savings account. Look around for a provider and consider different loans in Tulsa that might be right for your financial situation. If you meet the credit score, credit history, and income requirements, you can often be approved very quickly, which helps if the bill has to be paid on a short timeline. The benefits of personal loan typically include:
- A fixed monthly repayment schedule
- Lower interest rate than credit cards
- An unsecured loan, meaning you won’t have to put up collateral such as a house or car.
Use a credit card
Running up your credit card bill for a one-time unexpected payment is a potential fix. That said, you’ll want to think through how you will pay off the total amount plus interest if you are only able to make minimum payments. You don’t want to get stuck paying down a balance with a high interest rate that will increase your debt and cost you more in the long run than the unexpected bill itself.
Ask family and friends
If borrowing money on a credit card or through a personal loan are not options due to your card limit, credit score, income, or other loan requirements, consider asking family and/or friends. It can be difficult to borrow money from someone close to you, but it’s often a helpful solution as long as you each clearly communicate the terms of the loan and work out a repayment plan. You could also offer to take on errands, odd jobs, or other responsibilities as part of paying back the money.
You have options
There are many options to consider if an unexpected bill throws off your budget. Don’t panic—there are a number of ways to manage and navigate this challenging situation. Carefully consider your needs, inquire about a payment plan, adjust your expenses, and research ways to borrow money.
Information provided in this article is for information purposes only or does notnecessarily reflect the views of ventsmagazine or its employees. Please be sure to consult your financial advisor about your financial circumstances or options. This site may receive compensation from advertisers for links to third-party websites.
