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It’s easy to go overboard buying holiday gifts for your loved ones. For some people, no matter how hard they try, they cannot seem to stick to a budget during the busiest season of the year. Unfortunately, unexpected holiday spending can come with a price if you aren’t prepared for emergency expense issues. Luckily, with a little bit of planning and a payment plan in place for emergency situations, you can make sure you have money for any problem that comes up during the already expensive holiday season.
Setting Cash Aside
It’s important to try and set aside a little bit of cash here and there to be prepared for emergency expenses. This can be done by taking a small amount of money out of every paycheck and putting it into a savings account. Open up a free savings account with your bank or credit union and have a set amount transferred directly from your paycheck into the account every payday. That way, you will have money set aside for an emergency expense, such as a medical bill, home repair, or car repair.
The truth is not everybody is able to save money. For others, a recent emergency expense had already wiped the savings account clean and they’re currently unable to cover the costs of paying for another one. You may want to consider emergency lending options like online installment loans if you need emergency cash and lack the savings to make a withdrawal.
Cash advances- If your credit history is keeping you from a typical loan, you may want to consider a cash advance loan. These loans are short-term solutions for emergency situations. They can be applied for online and will not require a credit check. They are typically, but not always, due on the date of your next paycheck.
Installment loans- An installment loan allows you to borrow money even when you have bad credit. You will be given a payment plan that allows you to pay it back within a longer time frame. Many installment loans give their customers up to six months to repay the loan.
Traditional Small Loans
There are a few loan options that will help if unexpected holiday spending has left you broke, and you’re now faced with an emergency that requires a lump sum of cash. Small loans via traditional lenders can help you get through your emergency situation, but which kind should you get? Consider the following:
Bank loans- If you are a member of a bank, you may be able to take out a small loan to fix your financial problem. You will be required to pass a credit check to get the loan, and you may need to wait up to a week to be approved for the cash.
Credit union loans- If you have a local credit union, try applying for a small loan with them. You will first need to be a member of the organization, but members are permitted to borrow out of the pooled deposits. Interest rates are usually lower than those from a bank loan.
Credit cards can be a helpful solution for emergency expenses. You just want to make sure you can pay the balance down with no problem every month, as missed credit card payments can wreak havoc on your credit score. If you have an emergency and you are out of cash, use the balance of your credit card or apply for a cash advance.
Remember, a cash advance will be helpful in an emergency situation but comes with higher interest fees. Check with your credit card company before taking any advance.
Consider these tips when you want to be prepared for any emergency during the holidays. It will make the holiday a lot less stressful if you know you can take care of an emergency!