Unexpected Financial Setbacks

Many of us operate on some sort of budget, or at least try to do so. The amount of effort varies tremendously from household to household. One survey found that 82 percent of Americans said they budget, but about a third of those just write it out on paper. Roughly 20 percent of people use mental accounting, and don’t write down anything at all. It’s better than nothing, but it’s still not as good as it could be. Budgeting as precisely as possible makes it more likely that you can handle a sudden financial emergency. However, wages remaining stagnant makes it harder for many people to have much of a rainy-day fund. The combination of factors means that we have to look elsewhere when we suddenly need $500, $1,000, or more. How-to-handle-unexpected-financial-setbacks

Medical expenses

A sudden medical incident can be incredibly frightening. No one wants to get into a car accident, or have an asthma attack so severe that it requires us to call an ambulance. When we’re in the middle of a medical emergency, we have to worry about treatment first and payment later. Sometimes, the payment is much more than expected, especially if insurance won’t cover the full amount, or if the medical office coded a procedure incorrectly. It stinks to think about all this when you’re in pain; however, you can always go to an emergency room if there’s no other option. Heart attacks, strokes, and major accidents all require major and immediate medical intervention. If your life is in danger, or you even think it might be, head to a hospital.

What if you sprain an ankle or develop a case of the flu? In that case, you have a bit more time, and a few more options. Head to an immediate care center, similar to the one in Staten Island, New York, rather than to a hospital emergency room. They’ll be able to examine you and give you the treatment you need, at a better price than you’d get at a hospital. Those emergency room co-payments are nothing minor, unfortunately, so it’s best to avoid them, unless you have no other option.

It’s possible that you could go to a walk-in clinic, and be told that your issue is something that requires you to go to an ER, anyway. In that case, at least you can say you tried. If all else fails, ask about paying in installments. Most hospitals and doctor’s offices offer interest-free payment plans, if you ask them.

Loans and credit
Credit cards and loans are sometimes necessary. However, they should be used as judiciously as possible. They’re a good option for building up credit, since a good credit score helps you buy things like houses and cars. However, what if you have an unexpected, one-time expense and bad credit? Cases like that are tough, because you don’t have years to build up a good credit score. You need a way to pay off a balance within the next few days, or, if you’re lucky, the next few weeks. Do some research on bad credit loans, and see if they make sense for your situation. Make sure to read the terms and conditions very carefully, so you don’t get any unpleasant surprises when you repay the loan. It’s vital to know exactly what you’re getting into, before you sign on the dotted line. A short-term loan is only useful if it doesn’t turn into a long-term problem.
Related:
3 Ways to Make Use of a Debt Consolidation Loan Effectively
5 Healthy Habits for a Positive Credit Score

5 Healthy Habits for a Positive Credit Score

5 Healthy Habits for a Positive Credit Score

Maintaining a health score is way easier than improving a bad one. This is why you need to give up your bad spending habits and change your lifestyle. You need to give up on your shopping frenzy, and crazy purchases.

Following,we are naming a few healthy habits you should adopt to keep a healthy credit score. 5 Healthy Habits for a Positive Credit Score

  • Keep Track of Balance

It’s important to know how much revolving credit you have as compared to the one you use. To elevate your credit score, you need to keep paying back your balance and maintain a low percentage.

If you have more than one credit card balance, then you better consolidate them all in one personal loan. Merging multiple small loans in one big loan puts you on the right path to recovery as you now have only one debt to focus on.

Even after you have paid the balance in full after a month, your utilization rate will be higher than what you expect. You can avoid this if you check whether your credit card company accepts multiple payments or not.

  • Get Rid of Credit Card Balance

You need to get rid of small credit card balances to improve your credit score. Check how many credit cards you have, and calculate your total debt in detail with the current amount of each card.

You need more than one credit card but don’t pile them up. Starting paying back the ones with thelowest interest rate, and amount to clear your mind, and try to stop polluting your credit card reports.  Some best credit repair companies advise you against credit card debt, and they are right.

  • Put the Calendar to Good Use

If you are searching for a loan, search for different rates offered in themarket.

When you apply for credit, it leaves a mark on your credit score. However, three loan types including student, mortgage, and auto give you some breathing room. These loans suggest theneed, instead of bad spending habit.

Still, if you fail to keep up with your payments for a while, it will have adverse effects on your credit score. It will take you some time to clean it up.

  • Pay Bills on Time

If you want to make a major investment, you need to manage the finances. If you are struggling with your bills, you don’t want to make late payments. It will have severe effects on your credit score even if you have some savings.

On time payments is the key to a positive credit score. Yes, you can burrow a loan,and it won’t look bad on your credit sheet. The moment you startmake your payments late, your credit score will drop, and you will have to pay for it in the long run.

  • Don’t Obsess

A healthy credit score is like healthy living; it’s a lifestyle, not a goal. Yes, you have to change your habits to improve and maintain your positive credit score. This is why you need to work with best credit repair companies as they will help you see your shortfalls, and make necessary changes.
 
Related:
A Guide to Setting a Budget and Saving for a Rainy Day
5 Tips on Renegotiating The Mortgage On Your Home
Have Bad Credit-Need a Loan-Learn How