10 Things Families can do to get out of a Financial Emergency

Many UK families are going through financial difficulties right now. If you are facing a sudden financial emergency and don’t know what your options are, rest assured that many families all over the nation are suffering the same plight.

Whether it’s medical costs, job loss, a household disaster or otherwise; a bad financial situation can be stressful, and challenging to overcome. And if you have a poor credit rating, the situation can be exacerbated further, as you struggle to borrow money to cover the emergency.

Unfortunately, the world doesn’t show mercy on people with low incomes or loss of income. Your bills need to be paid, the kids still need to go to school, and you need to ensure that the entire family is well-fed, comfortable, and safe. You know what you have to do, but you don’t know how to do it! This brings us nicely to10 tips families can use to resolve financial emergencies quickly:

1. Consider Short-term Lending.

If you’re struggling for cash and your credit score is less-than-perfect you may want to consider applying for bad credit loans, instant decisions can be given online, and you can usually access the cash you need the very same day.

A bad credit loan doesn’t mean that your credit record won’t be checked, but it does mean that your credit score won’t be the only determining factor when it comes to approval. Lenders will instead consider your personal situation and your ability to actually afford repayments. So, if you have a poor credit history, but have shown financial management improvement, your chances of qualifying are much higher. Just make sure that you use your loan wisely, and try follow a few more of these tips in conjunction with a loan to improve on your financial situation in the long run.

2. Scrutinise your bills and decide which services are non-essential.

No family member wants to give up their personal favourite comforts and services, but if you don’t want to apply for bad credit loans, instant decisions have to be made on which expenses you will instead cut out of your life. These changes don’t need to be permanent. You can just cut back until your family are back on their feet. Some bills/expenses that most families choose to cancel to save money include:

  • Media streaming services such as Netflix, NOW Tv, and Amazon Prime Video.
  • Magazine and newspaper subscriptions.
  • Club memberships such as country club, golf club, gym, sports facilities.
  • Garden services or external home maintenance services.

3. Sell unused/unwanted goods.

All family members should be able to contribute a few items that can be sold to help pay for the family’s financial emergency. Spend a day or two sifting through the home for non-essential and non-sentimental items that can be sold for a profit. You can sell second hand items online in the UK via Gumtree, Amazon Marketplace, and eBay.

4. Downgrade mobile phones.

There are two ways in which the family can use their mobile phones to generate more money for the family unit.

  • Sell your modern smartphone and opt for a less-fancy option. The latest mobile phones resell for quite a bit, if you have taken care of the item.
  • Downgrade each family member’s mobile phone plan to something more affordable. Every bit of savings helps.

5. Start packing home-made lunches.

It’s tempting to send the kids to school with a little extra money for Bistro each day, but over a month, the cost of cooked meals that are provided by the school canteen can mount up. A nice home-made sandwich can be just as satisfying and nutritional and won’t cost nearly as much as a Bistro meal.

6. Change the way you travel.

Most families in the UK have more than one car. When going through financial difficulties, selling a car can bring in a lump sum of money quickly. This doesn’t mean that the family has to suffer. Consider car pooling to work and school and make use of the many lift-sharing services available that also make going out to social events affordable as well as safe. Some of these services include BlaBlaCar and LiftShare.

7. Negotiate with your lenders.

Believe it or not, your lenders want to help you to pay your bills. If you explain the situation to them, you can request that they consider a lower interest rate for you or extend the terms of your repayment contract. If you make these arrangements before you start missing payments, your lenders will appreciate it and are more likely to help you in this regard. Alternatively, you can apply for bad credit loans with instant decision with a lower interest rate, to cover the cost of your outstanding debts and provide you with a bit of extra cashflow at the same time.

8. Switch to a low-interest lender or credit card provider.

According to a post on the UK Money Advice Service website, which you can read here, you can reduce the cost of your credit and personal loans by switching to a different lender. Contact lenders and credit providers and find out if they would be willing to take over your outstanding debt at a lower interest rate. This will free up some of your cash flow each month to tend to family expenses.

9. Check if you are a suitable candidate for a PPI claim back.

When you opened credit cards and received loans years ago, you might have been sold payment protection insurance premiums at the same time. Many people in the UK are still unaware that some of these policies that cost them hundreds of pounds were actually mis-sold to them. And now you might be entitled to claim your money back. You can find a wealth of information on how to reclaim your payment protection insurance online.

10. Get the teens to make a bit of their own money.

This will probably be an unpopular one in your household, but the fact of the matter is that having kids can cost a lot of money, especially when they reach their teen years. Not only will you be paying for accommodation, food, and comforts, but you will also be expected to pay “pocket money”, buy treats, pay for hobbies and excursions, and even fund their social lives. Have a serious chat with your teens about saving on family costs. Encourage them to get part-time jobs.

Team Work Yields Great Financial Results

When a family is faced with a financial emergency, working as a team to overcome the problem should be a number one priority. With bad credit, instant decision can be provided for online loan applications, if you know where to look! Alternatively, follow the above tips to increase cash flow and get out of your tricky financial situation sooner.

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