Last-minute bills are an often unexpected and unwelcome part of life. They come out of nowhere and often just when you haven’t got the cash to spare to pay them. These last-minutebills could be anything which is precisely what makes them so difficult, if not impossible, to plan for. Regardless of the size of these bills, it doesn’t make them any easier to deal with. This is why it is necessary to have a few tricks up your sleeve,which can help to free up some funds to help you pay those bills. This is exactly why we have put together the following guide; read on to learn more.
First things first, you need to take stock of your options and try to negotiate terms if possible. Now, it won’t always be possible, but it is always worth trying. You might be able to come to an agreement with whoever has issued your bill. Most of the time, this will be some form of payment plan. Present your case and ask if you can spread the cost of the bill over several months. The service provider or merchant wants their money; they want you to pay the bill; therefore, it is in their interest to work with you rather than against you.
Dip Into Your Savings
Perhaps the best way to pay your last-minute bill is to use your savings. After all, is that not what they are there for? Choosing to use your savings can ensure that you can pay the bill quickly and painlessly. However, not everyone has savings which are big enough to account for a last-minute bill,especially if it is significant. By and large, you should try to have at least a month or two’s worth of bills saved should an emergency arise. Some people have the money in their savings, but they don’t like to use it because they are instead working towards something else, or they simply prefer to have the safety net there, holding out to use it until they have no choice.
Re-evaluate Your Budget
One of the easiest ways to free up some cash is to take another look at your budget. There may be areas of your budget that you can rework in order to free up some cash. That being said, if the bill is substantial, then it is doubtful that you will be able to find enough to cover the whole bill, but it can still contribute. If you are already on a shoestring budget, then this might be unrealistic. However, if you don’t have a budget to work towards at all, then it is worth implementing one. You can see where all of your money is going, and you might be surprised to find just how much of your money you are wasting on frivolities that could be better spent going into your savings or being used elsewhere in your budget.
Friends & Family
Another option that you can explore is asking your friends or family for a short-term loan. This will likely only be an option if the bill is smaller. Borrowing money from your friends and family is often a better option than borrowing from other lenders. This is because your friends and family won’t charge you interest, and they are likely to be more generous when it comes to discussing repayment terms. It can be a little embarrassing and awkward when it comes to asking your friends and family to lend you money. The best thing that you can do is to be totally open and honest. It shouldn’t be necessary, but if you are borrowing a larger sum, you might want to put the terms in writing and have their signature. This is simply a safeguard put in place to protect both of your interests. The likelihood is that you won’t need to refer back to it, but it is better to have it just in case.
Sell Off Your Clutter
If you are going to struggle to find the money in your budget or use your savings, then you need to explore other options to come up with some cash. You can raise some money by selling off your old, unwanted clutter. A lot of people can easily find things within their home that they don’t use or want anymore; instead of hanging on to them or donating them, you can sell them to raise some money. There are a lot of options when it comes to selling your clutter. You can sell them via an online marketplace. Depending on which one you choose, you can have the money deposited directly into your bank account; otherwise, it will be cash. If you are going to get rid of some jewellery or other more high-value items, then you might want to take them personally to a shop like Cash for Gold or an auction house. You could also consider going to a car boot sale to sell your clutter. Either way, you can free up some space in your home and make some money.
Consult Your Insurance Provider
This will not be an option for all of your bills, obviously, but depending on your bill, it is a great choice; it alleviates the pressure and the burden of the bill. Realistically, that is what insurance is for. You pay your premiums for a reason, after all. Think about what the bill is for and whether you have an insurance policy that can help. For example, if the last-minute bill is from the vet for a procedure that your pet has had, you could use your pet insurance. If the bill is because of some damage to your home or its contents and you have home insurance, then you can make a claim. The same can be said for car insurance. That being said, you will need to go over your policy, and it is also worth noting that if you make a claim, then your premium will likely increase for the next year, so bear that in mind too.
Take Out a Loan
The final method to consider when it comes to working out a way to pay your last-minute bills is to take out a loan. Now, this method is probably best reserved for larger bills that you wouldn’t otherwise be able to pay, even with the methods listed above. There are lots of options when it comes to looking for a loan provider. Your options will be limited by your personal financial situation. You will need to ensure that you meet the eligibility criteria. Consider your options. Unfortunately, some people will not be able to secure a loan from traditional providers for a number of personal reasons. Luckily, there are other options that you can explore. For example, Payday UK can help you to assess your options by acting as a broker for a number of payday loan services.
Unfortunately, there is very little that you can do to avoid last-minute bills. This is why you need to have a plan in place that allows you to deal with them when they do arise. The above list is by no means exhaustive, but it does offer you some of the best solutions that you can use to deal with your bills. Think carefully about the solution that you choose and the ramifications of said choice.