How to Manage an Unexpected Expense When You Have a Bad Credit Rating and No Extra Cash

Expenses are never fun to deal with, but when they are fixed expenses you at least know they are coming and how much to budget. Unexpected expenses, however, can throw you for a real loop, leaving you completely stressed about how you can go about paying them. According to statistics, around 25% of British adults don’t have any savings at all, which means that should an unexpected expense hit, they won’t have the cash to pay for it.

Now add another layer to the issue, which is bad credit. For those who don’t have any sort of savings or extra cash, and also have a bad credit rating, an unexpected expense can spell financial ruin. So, before you get too caught up in the stress and pressure of it all, here are some ways you can go about managing the expense and getting it paid even if you have bad credit.

Look Into Bad Credit Loans

The good news is that there are lenders who offer UK bad credit loans considered. Take for example Simple Personal Loans, which offers small and medium sized loans with various repayment terms. The fact that you have bad credit won’t scare them off, but you should realise up-front that you will need to pay more in interest – which means you’ll end up paying more for that loan in the long run. It’s the price you pay to take the stress off your plate and access the cash you need quickly.

Can You Make Extra Money?

Another tip is to pick up extra hours at work if possible, take on a part-time job temporarily, offer contract work from your own home if it fits your skills, and just look for a way to bring in a little extra cash. Keep in mind that this doesn’t have to be a permanent solution, but that supplemental cash may be something that you like having and that can be put away as savings for future expenses.

Sell Items for Cash

You may be surprised to find out just how much money you can make by selling items you no longer need or want. If you’ve got a bunch of “stuff” that is just taking up extra room in your house or flat, why not capitalise on it and make some money? There are all kinds of local buy and sell groups, and even apps dedicated to selling items. Just make sure you add some photos of the items to generate more interest.

Cut Down on Unnecessary Costs

Finally, you want to work to cut down any unnecessary costs in order to free up a little cash in the budget. This can actually be a great practice moving forward, because again you can use that extra cash to put away into savings.

Getting Past the Initial Stress

So, while the initial stress of the unexpected bill can be a lot, it’s important to move past it and find proactive solutions to your money woes.

Be first to comment