The cost of living is increasing at an unprecedented rate with everything from utilities to mobile phone bills landing on our doorsteps and shocking us with how expensive they are. You have to pay, you can’t bury your head in the sand and you can’t ignore them, you need to have a strategy for dealing with unexpected emergency payments, because you have to cover them somehow.
Ofcom recently asked consumers to get in touch if they had received an unexpectedly high mobile phone or landline bill and their results showed that 6% of responders had received an unusually high mobile bill with 5% receiving a high landline bill. Shockingly nearly 20% of people who reported a high mobile phone bill said it was over £100 more than they had expected. Of course, this can be down to going outside of your agreed usage allowances but regardless of the reason, it’s clear we need to have a larger disposable income than ever before, just in case emergency payments are sprung upon us.
Budget for the Unexpected
Emergency payments can come from other unexpected events such as an unfortunate car accident or the breakdown of a household appliance and you need to have a plan for these situations. Of course your car will be insured which means higher premiums in the future but at least it can be fixed. But are your appliances covered? You should budget to ensure you insure your major appliances and of course have cover for your home and possessions. In the unlikely event that you do have a breakdown this cover can make the cost significantly lower than it could be.
Equally you need to have funds available for unexpected payments. Whether this means having a small savings account or keeping a credit card clear for emergency use is a personal decision. If you have the income available to make genuine cash savings this is always preferable to relying on credit because you don’t have to pay yourself back or pay interest. Of course, it makes prudent sense to ensure if you do spend any of your savings you replace them but there’s no urgency like with ensuring you get your credit card paid off.
Pay Day Loans
Ensuring that you can make the repayments, a pay day loan may be a quick and simple solution to your problem. There are lots of tools online that offer calculators so that you can summarise how much you can take as a loan in order to reach the repayment, and as a pay day loan is instant the emergency payment can be made as soon as the loan is available.
The Benefits of Overestimation
It always works in your favour to overestimate everything, and then you’ll always have a surplus. This can mean assuming your gas bill will be more than last time and therefore reserving an extra sum for its payment. When it remains the same, or if you’re really lucky, it is lower, then you have additional funds available and it allows you to deal with that unexpected emergency payment without panic.
Emergency payments and those you simply don’t expect to be as high as they are can be frightening, especially when you have set terms within which you have to pay. However, the more safeguards you put in place the more comfortable dealing with such occurrences will become and soon you can pay them off without worry, although it is still a nasty shock.
Louise Jenkins writes about pay day loans, for more information visit https://www.communitypayday.com/