Oh no. A bill has landed on your doorstep or inbox and you weren’t expecting it – so what do you do now? Bills that arrive out of the blue, or are higher than you anticipated can throw a spanner into the works if you have a carefully considered budget. With no extra cash or savings to cover the payment, what are you going to do? The experts over at price comparison site, Choose Wisely, have offered up some of their own tips and tricks that could help.
Ask friends and family
If you feel comfortable doing so then you could always try to ask friends and family if they have any extra cash that you could borrow. You may be able to avoid added interest this way, but it’s important that you set out a structured payment plan and terms, to avoid messing up your relationship over money matters.
To ensure that they are happy to lend to you, you could put together a budget showing your incomings and outgoings – they might even spot something that could help you to save money each month. If you think you’re going to have trouble repaying one month then make sure you contact them about it immediately.
Selling unwanted items
Whether it’s a good old-fashioned car boot sale, or bigger items via an online auction site, selling items that you don’t need anymore is a good excuse to have a clear out and raise some extra cash. This can be used to clear the unexpected payment, and if you have some left over, then you can put it aside in case this type of emergency happens again in the future.
Contact the provider
If you think you’re unlikely to be able to pay on time, then you’ll need to contact the provider. They can be quite understanding and if you explain the situation to them, then you may be able to work out a payment plan. Speaking to them over the phone is best as you’ll need to give them the details of your incomings and outgoings, so that you can work out an affordable amount together.
This will also help you to avoid receiving default notices from them and perhaps even the late payment charge, too. Ignoring the problem won’t make it go away. Instead, you’ll be faced with potentially damaging your credit history, along with legal action being taken against you.
What about getting a bad credit loan?
With a payment date looming, you might feel like the only option is to take out a loan…but you have bad credit, what happens now? Well, there are options out there if you are sure that you want to take out more credit. Bad credit loans are specially designed by lenders for those that haven’t got the best credit history – but they do come with conditions.
Sometimes you may need a guarantor to act as extra security on the loan, or the interest payment may be higher than others. For these reasons, you will need to think carefully about whether you want to proceed with an application and take on the extra monthly payment, otherwise, your guarantor might need to pick up the slack or you could face more money troubles in the long run.