A financial emergency can happen at any time and normally it’s unexpected, so having the funds available to resolve it quickly is important. Many people may have the disposable income or emergency savings to help cover this, but for those that do not have available funds, what can you do? This is a reality for
Lack of Emergency Savings
Having enough savings put aside to help is the ideal way to ensure that the impact of any financial surprises that occur are minimised, but unfortunately many do not have this to rely on. Those who do have savings may still be short depending on the emergency. The Money Advice Service recommends people to have an emergency savings fund of at least . However, one in three adults has . Londoners do fair better than the rest of the UK when it comes to the amount they can save each month, with .
Having options to soften the impact of an emergency situation helps people to ensure that even with little or no savings, they can still resolve the issue. Short term lending options are one way that those who need emergency funds, such as payday loans, can receive the help they need. Say for example your boiler stops working unexpectedly and having no hot water or heating becomes a reality, would you be able to wait until your next salary date to pay for this, especially if it’s still days or weeks away? If your car breaks down and the repair bill to resolve the issue is much higher than expected, would you be able to pay for this quickly to get back on the road? According to the Money Advice Service, . An emergency short term loan can mean someone can pay for these unexpected, costly bills quickly and then spread the cost over a short period to minimise the impact on their finances.
Assessing Available Options
It’s worth remembering that whilst this type of borrowing can payout on the same day in most circumstances, they are designed to be used in the short term and for emergency use only. Using this option might be more suited for those that can afford to repay it within the short timeframe, but they are not a long-term solution to any wider financial difficulties. In any financial emergency, it is best to review your options and not rush into anything.
If you have the available savings, you should look to utilise these first. If you can afford to not have to take out a loan agreement or use any available credit to cover an emergency expense, then this might be the better option for your circumstances. No-one wants to worry about the unexpected happening, but in terms of your money, it’s best to start building an emergency savings fund just in case.
