According to a telephone survey by Bankrate with more than 1,000 participants, more than half of Americans couldn’t cover an unexpected $1,000 bill with their savings. Many people are in a challenging financial situation and would struggle to juggle a car repair, a broken appliance, a medical bill, or another unexpected expense outside of their regular budget.
While challenging, the average household does have options when surprise bills arrive in the mail. You might be able to take control of your financial situation in some of the following ways.
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Apply for a Payday Loan
If you’ve received an unexpected bill you can’t afford to cover before your next paycheck, consider applying for a payday loan through a leading provider like My Canada Payday. Payday loan providers offer small loans for people who need a helping hand making ends meet due to an unexpected cost. You can then repay the money you owe with interest over a set payment period.
Sell an Asset
While you might not like the idea of selling something you love, it might be necessary if a business is chasing you for money for something you can’t afford to pay for. Fortunately, selling assets in the digital age is generally a straightforward process. You can post pictures of your items and a price on social media and wait for people to contact you. You can now also create ads on social media if you want to ensure your goods for sale get the most exposure for a fast and easy sale.
Pawn zn Asset
If you can’t bear to part with something special, but you know it’s worth a lot of money and its sale could help you financially, consider pawning it instead. Pawnbroking is an old practice dating back to 5th century China and remains popular today.
Pawnbrokers can offer you a percentage of the item’s value in cash in exchange for temporary ownership. They will then hold the item for a set period until you return with the money and reclaim ownership. However, if you don’t come back in that window, the pawnbroker can sell the item to receive what they’re owed.
Get a Second Job
We all value our free time, but your financial situation might see the need for a temporary second job to cover unexpected bills or address ongoing shortfalls. Fortunately, there are many ways to earn extra money, either through active jobs or passive income opportunities.
Dog walking, house sitting, and babysitting is straightforward and flexible jobs that might suit your life situation. However, you might also like to explore freelancing gigs online, like writing and graphic design, or passive income options, like selling e-books or online courses you’ve created.
Borrow From Loved Ones
Most people feel uncomfortable borrowing money from friends and family, but it might be necessary if you’ve exhausted all other options. Discuss the prospect with people you trust, and consider creating a written contract to avoid any misunderstandings about the borrowing terms.
You might then pay the money back in full or create a payment plan and make regular small payments over time.
Managing money can be stressful, especially when you find yourself short due to unexpected costs. However, by considering payday loans, selling and pawning assets, and even taking on a second job, you might improve your situation and put your money worries behind you.
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