Money is tight for most people these days. More than half of Americans are living paycheck to paycheck right now. Of the remaining households, an unexpected expense or a gap in income of just two or three weeks would leave most struggling significantly just to catch up on the bills. Many could even face loss of their vehicles, homelessness, and other problems as a result of an unexpected outlay.
It’s not always possible to plan for financial hurdles. Though many people are willing to set aside money to cover surprise expenses, they’re often forced to choose between saving money and covering basic needs. Because of that, quite a few people find themselves considering King of Kash and other resources to help meet their financial needs. Whether you’re among them or just painfully aware of the possibilities, understanding common unexpected expenses and their possible impacts can help you prepare for the future.
Lofty Medical Bills
Unexpected medical bills are among the most common financial hurdles people face. Visits to a hospital emergency room can cost anywhere from a few hundred dollars to upwards of $2,000 for even a brief treatment session. Costs depend on several factors, including a patient’s specific medical issue, how much of an emergency it really is, the type and amount of care needed, and other considerations. If you have to stay in the emergency room overnight or are admitted to the hospital, the cost is going to surge. In fact, emergency surgery and a week in the hospital could cost $15,000 or more.
Some people are quick to argue that having health insurance mitigates quite a bit of the cost. For those who are already struggling to make ends meet, though, it’s just not that simple. Medical insurance itself can cost $1,000 or more per month for family coverage. In the grand scheme of things, that extra money could mean the difference between having a home or not. In many cases, people are forced to forgo health insurance and hope for the best for the sake of basic necessities.
Keep in mind, the problem often extends well beyond the cost of medical care when a health-related emergency arises. There’s a chance of having to miss a few days or weeks of work following a health scare whether it’s a ruptured appendix or an automobile accident. These days, even the possibility of being exposed to someone with COVID-19 could keep you out of work for a couple days or weeks until you’re confirmed to be free of the virus. The income you’ll lose along the way could be devastating.
Job Loss or Reduced Hours
According to a recent write-up, more than one million people lose their jobs each year due to the companies they worked for shutting down or relocating. Another 21 million were laid off or fired last year alone, and that’s considered a low figure based on statistics from the last two decades. With more than 40 million Americans simply quitting their jobs and searching for others, it might seem that finding new employment would be a simple matter for those who unwillingly lose their jobs. Unfortunately, that’s not necessarily the case.
Finding a new job takes time. Doing so means searching for job openings in the right industry that require the right skillsets to match those of the candidates in question. Even then, not all companies are perfect fits for all people. To make matters even more complicated, job seekers are up against the increasingly stiff competition. Impressing employers enough to win their approval over other candidates isn’t an easy feat.
Many people are more than willing to take on temporary jobs just to help make ends meet until something more permanent comes along. Still, when you suddenly transition from making $75,000 per year in a stable career to working part-time at a fast-food restaurant, paying the bills becomes incredibly difficult. It’s certainly reason enough to need extra cash to help stay afloat in the meantime.
Home and Vehicle Repairs
Murphy’s Law dictates everything that can go wrong will. It goes on to point out that if there’s a possibility of several things going wrong, the one that’ll cause the most damage will be the first to go wrong. Additionally, this concept notes that if you take every possible measure to avoid the potential problems, you’re aware of, something else will go wrong that you hadn’t considered.
This may seem pretty depressing, but many people can testify to the truth in those theories. It might also be fair to say that whatever happens to go wrong is bound to cost more money than you have on hand to cover it. You never know when a home appliance or fixture might take a turn for the worse. There’s no truly accurate way to predict when a vehicle’s engine might blow a head gasket or the gears in its transmission might lose all the teeth that make them work right.
In the midst of paying the monthly rent or mortgage and car payments, setting aside money for possible repair needs isn’t easy. It’s not even possible for the majority of people. Still, those repairs need to be covered. Otherwise, they could lead to further damage and even costlier repairs. They might even bring about an entire list of additional financial woes.
Making the Most of the Available Resources
Everyone faces unexpected expenses from time to time. Not being financially capable of covering them isn’t a matter of choice for most people; it’s a matter of necessity. When you’re forced to choose between real expenses and the possibility of needing extra money, the most pressing issues naturally take precedence. Fortunately, help is available.
Emergency expenses are unavoidable, but they don’t have to mean all hope is lost, either. Even if you don’t have perfect credit, it may be possible to get a loan to help cover those unexpected financial burdens. You’ll have the money needed to cover costs you weren’t able to plan for, and you can pay it back in installments rather than a lump sum. Many people qualify for fast approval as well, so there’s no need to wait days or weeks to get the necessary cash.