3 Bad Financial Situations and How to Get Out of Them
There will come a time in your life when you’re faced with a bad financial situation that can stress you out and make you feel as if there’s no way out. For instance, maybe you had a bad month with your small business and you don’t know where grocery money is coming from, or maybe you have bad credit but you need a new car. While these situations may not seem ideal, they’re not the end of the world. There are ways to get out of difficult financial situations—you just need to know how to do so. If you’ve ever faced (or are currently facing) any of these bad financial situations, here are some solutions that can help you get through it.
- Need a Car with Bad Credit
A vehicle provides you with an easy way to get to and from work, which you need to make money. However, the large expense of a car doesn’t make it easy for people to get one without taking out a loan. However, if you don’t have great credit, getting a car loan can often be difficult, but not impossible. If your credit is less than perfect, there are ways you can still get a vehicle. First, look for dealerships or lenders that provide loans for people with bad credit. In some cases, your interest rate will be higher, but you can always refinance after successfully paying your loan on time and reduce your interest rate. Plus, these on-time payments will improve your credit score, which is a win all around.
In addition, you can also see if someone will co-sign on a loan for you. This allows you to use the good credit score of someone else to secure a loan in your name. Be sure that you can afford to make these payments, as any missed payments will not only damage your credit, but the credit of the individual who signed for the loan as well.
- Totaled Vehicle with No Money for New One
Car accidents happen more often than you think, and sometimes these accidents leave your vehicle totaled, which means you need to get a new one. However, if you don’t have an emergency fund or extra cash to get a new vehicle, this can often put you in a tight situation.
But don’t stress. There are ways to still get what you need.
For starters, find out if the vehicle is actually totaled or if you can afford to fix it. For instance, if you just have a dent on your vehicle but it’s still drivable, then maybe you can get away without getting a new vehicle.
If you can’t currently drive the vehicle, there are some questions you need to ask before assuming the worst:
- Is the car totaled if the air bags deployed?
- How do you get an independent assessment of the damage?
- What are my rights if my insurance company is under valuing my car?
If your insurance won’t cover it, there are plenty of places that will give you cash for a broken down or unusable vehicle, so see if you can find one of these locations nearby. This should give you enough money to buy a used vehicle or put money down for a car loan.
- Can’t Pay Your Bills
There are a variety of reasons why money can get tight, and sometimes this means you can’t afford to pay your monthly bills. This may seem like the end of the world and create a great deal of stress, but you need to understand there is usually a way out. First, you can always consider asking a friend or family member for a small loan. This can allow you to keep up with your bills without taking on a loan with high interest. Second, you can talk to your debtors about a payment plan. Most companies understand that hardships happen and some even have hardship plans. Talk with the creditor about options you have for paying your bills, whether by renegotiating the payment due date or setting up a payment plan to make large expenses more affordable. Finally, start preparing for this situation ahead of time. If you know your energy bills are higher in the winter, then you’ll want to start putting money away in the summer to cover these added expenses. You may also want to look at items you can get rid of to lower your monthly expenses too.
Being tight on cash doesn’t mean you’re going to lose everything you own. Instead, if you find yourself in any of these financial situations, it’s important to use the solutions to help you make the most of your situation and get ahead where you can.
