Life is full of unexpected events, many of which cannot be predicted. Financial emergencies are, unfortunately, all too common and they can become crippling. Even if we have enough saved to take care of an emergency, what happens if covering the cost means wiping out your savings?
Short-term loans are a popular way for people to take care of things quickly, without emptying their accounts. Many short-term loans are of a lower value, such as £500 loans, and are easier to pay back quickly.
What would constitute a financial emergency? We have detailed three of the most common here.
Sudden unemployment
Sometimes a job loss can come as a complete shock, and when this happens people can find themselves in a financial bind. Benefits can help but they take time to organize and in the meantime you have bills and expenses, like rent or mortgage payments, to take care of.
Not having a source of income is extremely worrying, and if you have none or little savings then the stress is going to be even worse. Everybody’s outgoings are different, but there’s no denying that a short-term loan can go a long way in helping.
Emergency repairs
Emergency repairs can sometimes be predicted, things like our cars for example need maintenance. The trouble is we can never be sure when these things will pop up. It’s not always possible to put money aside, and if you need your car to get to work then having it put out of commission can have serious consequences.
Again, a short-term loan in this scenario can be a lifesaver – especially if you are keen on keeping your job.
Boiler repairs
A very common, and very expensive, a financial emergency is having your boiler suddenly bite the dust. Not having hot water when you need it can be very serious, especially if you have small children, and it will of course affect the heating of your home too.
With weather typically being extremely cold in winter, more pressure is put on the boiler which of course increases the chances something will break or fail. Costs for replacement boilers can run to several thousand Pounds/Dollars – an expense that not many can afford in the winter months.
Other unexpected expenses
Sometimes our budgets don’t always agree with our lives. One month you might spend within, or even way below, your budget, and the next month there could be multiple expenses that you didn’t account for;
- Moving home
- A job loss
- Broken, essential items around the home
There is more to consider than we sometimes think. And when you add in an unexpected bill that we didn’t account for, like a tax bill we were not expecting, then life can suddenly get very expensive.
Throughout the year, we can be surprised by unexpected expenses but with a short-term loan, these expenses don’t have to finish us off financially or leave us unable to pay.
Travel, for instance, has always been expensive and most of the time we can pay for trips in installments. This is not always possible though, and if you are using an agency and they refuse to refund your money because they had to cancel everything due to COVID, that is good money spent for nothing in return except stress.
Having cash available when you need it means you have access to an easier, less worrying way of getting things under control. Budgeting is one thing, but life’s little surprises have a way of catching us completely off guard.
Taking out a loan is an acceptable way to take care of yourself, but you need to be sure that you can pay it back.
