Financial Emergency? These Tips Might Help - Somewhere To

Financial Emergency? These Tips Might Help

Ask almost anyone what they’d do if they were faced with an unprecedented financial emergency, and the chances are they’d reel off a number of predictable suggestions to relieve the largely unseen monetary burden and stresses. Think of ideas such as asking family and friends to help you out, approaching your bank manager for an overdraft extension, beg, borrow and (probably not) steal and/or set up a Go Fund Me page. Yes, from the sublime to the frankly ridiculous. And one of the most recurrent bits of advice received would be to look into arranging either a small payday loan or perhaps, a logbook loan. While you may be familiar with the former, the latter is busy making something of a name for itself in recent times; as well as receiving glowing references from users, in terms of helping them climb out of a financial hole.

To the uninitiated, a logbook loan is one of a number of different types of secured lending here in the UK, and is quickly emerging as amongst the most popular and recurrent forms of a security bill of sale as such. In a nutshell, a borrower in this instance would set in motion the wheels – if you’ll excuse the pun – that effectively transfers the official/registered ownership of their vehicle (be it a car, motorbike or van) to the logbook lender. This transaction represents security for the loan, essentially. For more information, view the logbook loans website.

Avoid Panic!

So, what would our tips be if asked how best to cope with a financial emergency befalling us? We’d always advocate a measured emotional response and subsequent approach to dealing with it, to be honest. And the very first reaction we’d recommend would be to not panic. Panic doesn’t help anyone, so instead tell yourself that you’re going to get through this. While it’s instinctive to quickly find yourself emotionally immersed in an un-forecast financial maelstrom, it’s best to try and avoid making any snap decisions on how you’re going to manage the situation which can have long-term ramifications on your monetary health and wellbeing.

Look to approach the topic with rationale and without instigating a knee-jerk reaction which could make matters worse. You need to calmly take stock of the scenario and think reasonably about how the next decisions you arrive at might affect both your immediate and longer-term future. Essentially we’d suggest speaking with someone who can offer you counsel as such. Either someone close to you, like family or friends, or alternatively someone impartial and not connected to you. A financial professional perhaps with the experience and skillset to help you negotiate the choppy waters which could lie ahead. After all, a problem shared is, as the old adage implies, a problem halved.

Re-evaluate you Spending Plans Here and Now

Unsurprisingly, when confronted with a shock financial situation, money can become thin on the ground in no time at all, as you struggle to determine what needs paying where. Which is why it’s imperative that you prioritize your spending habits immediately. If you put into place plans to channel your spending into vital areas and filter out those which are considered less important in the grand scale of things, then you’ll be on the right survival path. For example, forget about your Netflix and Amazon TV subscriptions, these funds are better spent towards helping you get through this financial emergency. Ideally sit down and draw up a hit list of things you can live without, possibly rating them in terms of priority. Obviously, food and a roof over your head should come near the top though, while gym membership and that weekly trip to the cinema should feature fairly low on the list.

Try to Make More Money, Fast

Easier said than done, we know, but we’re not talking about pleading with your boss for a pay rise. More a case of charity beginning a lot closer to home. By that we mean offering to do jobs for neighbours or family even, be it cutting hedges or mowing lawns. Maybe even babysitting or dog walking. We wouldn’t rule out washing cars. Literally anything and everything shouldn’t be ruled out, when needs must. Swallow your pride and go knock on a few doors. Think of it like this. The faster you can earn extra-curricular monies, the quicker it’ll be to settle any form of outstanding debt. Or indeed, freshly created debt.

Speak with your Creditors

Although it might not be your first thought, creditors and service providers aren’t always the monsters they’re made out to be. Many are more than willing to listen to your story and reach out with a financial olive branch, believe it or not. Failure to notify them might well lead to late fee charges as well, don’t forget. It’s not unheard of for some credit card companies to defer payments, for a while at least. Or failing that, come to some sort of mutual arrangement over alternative repayment options. The same goes for both utilities companies and mortgage lenders. You just don’t know until you ask.