For many people, affording their monthly expenses is a continuous challenge. And, when something like a necessary repair comes along it throws the unstable balancing act into a frenzy. There are ways to reduce your debt and get on track with your monthly obligations and end the week to week paycheck cycle.
The best place to acquire the money
For the immediate situation, the unavoidable repair, there are several ways to acquire the money. Deciding one which one best suits your needs is the decision you want to make weighing all the pros and cons. If you have a retirement plan in place and the repair is substantial like a new roof or a septic system, borrowing from your retirement plan may solve the immediate problem without having to add debt onto an already tight budget. Some companies will allow you to access the money earlier, but beware it comes with a hefty price tag. The initial penalty is 10% and when you file your taxes you’ll need to pay another 10%. Plus the federal government takes their 20% off the top. If you have a substantial amount coming to you this could add up to many monies thrown away.
Is a short-term loan the answer
If on the other hand, the repair is for something that costs about $1,000.00 to fix, a short-term loan offered through a company like MaxLend.com will solve the immediate problem and give you the cash you need quickly. These online loans offer an alternative to the extremely high-interest payday loans that generally require repayment within just a few weeks. By borrowing a short-term loan you’ll have more time to repay it with less interest and a lower monthly payment. Again, before committing to any loan make sure that you have room in your budget to repay it on time.
Hosting a yard sale
If your budget is extremely tight and you find that you do not have the means to repay even a loan with a low monthly payment, hosting a yard sale can put cash in your pockets quickly. It will also get you to clean out your garage, basement and attic that are long overdue. Make sure to plan it for a weekend this way you’ll get more traffic. People are always looking for bargains on things like baby furniture, tables, tools, clothing and household items.
Reducing your expenses
Ultimately, affording unexpected repairs should not break the bank. You should have a savings account designed for precisely these types of situations to avoid having to touch other monies that you need to pay your bills. If your currently in over your head, take steps to reduce your monthly expenses. It will mean that you’ll have to cut back on things like eating out, buying your coffee and lunch at work and frivolous purchases, but you can do it with a commitment. For instance, if you have several credit cards you use weekly, stop. Credit cards are not something you should ever use to buy the things you can’t afford. Instead, learn to live on your cash. Give yourself a weekly allowance and then put everything else in the bank. Once your cash is gone, your spending for the week is over. The first two weeks may be difficult but once you get out of the habit of using your credit cards you’ll find you have money left over.
Find ways to save money
There are literally hundreds of ways to save money on your household utilities, food, clothing and essentials. Not only will this cost you less for the things you need but it will free up money to cover other expenses. Before you head out to the grocery store check online for coupons and comb through the flyers you receive from local supermarkets. Shop your electric, cable and cell phone to see if you’re getting the best rates and use consignment stores for children’s clothing and supplies. These are just a few ways to afford the things you need at a fraction of the cost.