Tips for Managing Unexpected Expenses on a Tight Budget

National nonprofit credit counseling agency Take Charge America helps

consumers minimize negative impact of expenses, find creative solutions

PHOENIX--(BUSINESS WIRE)--No matter how strict or frugal, unexpected expenses can send many people

into a financial tailspin. A Federal Reserve study reveals that 40

percent of adults would not be able to cover a $400 setback – an

alarming statistic given the high cost of common emergencies such as car

trouble, home repairs and medical care.

“Ideally, you want to build an emergency fund in a liquid savings

account to cover such expenses so your daily life isn’t impacted much.

However, we know that’s not always possible throughout all life phases

and challenges,” said Mike Sullivan, a personal finance consultant with

Take Charge America, a

national nonprofit credit counseling and debt management counseling

agency. “When you don’t have cash on hand, you need to hunker down

and get creative.”

Sullivan offers seven tips for handling unexpected expenses:

• 
  Assess the Expense: Not all unexpected expenses are created
  equal. For example, repairing the car that gets you to and from work
  ranks higher than paying for airfare and accommodations for your
  college roommate’s bachelor party. If the expense is truly urgent,
  it’s worth cutting other spending to come up with the funds.
  


• 
  Join the Gig Economy: Earn fast cash by working for Lyft,
  Postmates or Uber Eats, among many other “gig” services, that can be
  completed on your own time using your own resources.
  


• 
  Sell Your Stuff: Most of us have extra clothing, electronics,
  sports equipment, furniture and other gear that are no longer in use.
  Take time to photograph and list your items on Facebook, Craigslist,
  Ebay and OfferUp. Earning $50 for a bicycle or $75 for a coffee table
  will make a dent in your expenses – and create more room in your home.
  


• 
  Be a Miser: Do you spend money eating out, shopping or
  traveling? What about high-priced cable, subscriptions and
  memberships? Cut back non-essential spending in favor of a frugal
  existence until you get past this financial hurdle.
  


• 
  Pay Medical Debt Over Time: Medical costs are a major source of
  unexpected expenses. Fortunately, most healthcare organizations will
  work with you on a payment plan – and without charging interest. You
  just need to ask, and explain your financial situation.
  


• 
  Tap Your Home Equity: If you must borrow money in order to
  cover the expense, consider a home equity loan. This type of loan is
  better than tapping retirement accounts, running up credit cards or
  taking out a cash advance. Once the expense has been paid, pinch
  pennies to pay off the loan as soon as possible and limit any future
  financial impact.
  


• 
  Consider Credit Counseling: If you’ve been hit with unexpected
  expenses or are struggling with other debt, consider credit counseling
  from a nonprofit agency that can help you develop a workable budget
  and potentially negotiate debt and repayment terms with your creditors.
  

For more information about credit counseling and to receive a free debt

review and financial assessment, visit cc.takechargeamerica.org.

About Take Charge America, Inc.

Founded in 1987, Take Charge America, Inc. is a nonprofit agency

offering financial education and counseling services including credit

counseling, debt management, student loan counseling, housing counseling

and bankruptcy counseling. It has helped more than 1.6 million consumers

nationwide manage their personal finances and debts. To learn more,

visit www.takechargeamerica.org

or call (888) 822-9193.

Contacts

Aker Ink

Taylor Holmes, 602-616-3781

taylor.holmes@akerink.com