Your car breaks a belt. You break a tooth. Your toddler breaks the tub faucet.
Accidents happen and often come with big bills attached. Covering those expenses is a common reason people turn to alternative lenders.
In fact, 77 percent using alternative financial services do so because of a sudden life event that made it difficult for them to cover a bill. Emergency same-day loans can put cash in your hand to use for a variety of unexpected events that stretch far beyond your paycheck.
No amount of good budgeting or careful maintenance can help you avoid life’s emergencies. But an emergency loan can help you manage it. Here are just three of the more common situations people find themselves in where a same-day loan can come to the rescue.
Cars make life so much easier, whether bringing home a week’s worth of groceries or getting us to work on time. That same convenience can make us dependent on them, though, making any trouble with the car a major hassle.
No matter what kind of car you drive or how often you drive it, it will need repair or maintenance at some point. You can plan for some things like new tires or routine maintenance and maybe live without others like air conditioning for a month.
But there is no way to plan for potholes. Ten percent of drivers hit them hard enough once or twice a year to require repair at an average cost of about $600 each time. That’s more than most people can cover with their emergency funds.
Then there are the times when your car trouble isn’t your car’s fault. Racking up traffic tickets can get your car booted until you pay them, or you might park in the wrong place and get towed. It might be just a few hundred dollars to spring your car from impound, but that can put you in a bind with your budget.
Unless you have an older car, replacing a lost key isn’t a cheap issue either. Whether you need a new fob or a key with a programmable chip, you’re looking at more than $100 to get back into your car.
Lastly, an accident can leave you scrambling for more than a ride to work. Even if you’re covered, your deductible could put you out several hundred dollars.
Medical emergencies can require more than most people have on hand even with good health insurance coverage. Trips to the emergency room can run you 10 percent of the cost out-of-pocket rather than the $25 co-pay you’re charged at the doctor’s office.
Less than 40 percent of Americans can afford an unexpected $1,000 bill, and most medical emergencies will cost far more than that. These emergencies can extend far beyond the hospital, though. Your dentist might discover a cavity during your check-up or your dog might end up at the vet after swallowing something they shouldn’t.
If you get paid hourly, you’ll also have less in your pocket to help you cover the bills if you have to miss work due to the emergency.
Smaller medical issues can create financial challenges that could be covered with same-day emergency loans. Replacing glasses that get lost or broken or covering the cost of a new prescription are good examples where you might not be able to wait until your next paycheck.
Emergency home repairs run an average of $2,200 during a year. They tend to be things that have to be taken care of and taken care of immediately and rarely are covered by your homeowner’s insurance.
One big example is if the air conditioning conks out in the middle of the summer. It might not be that big of a deal to live without it for a couple of days if you live in the north part of the country. But when the temperatures get above 100 degrees every day, the heat becomes a serious health hazard if you don’t get the AC fixed quickly.
A smaller repair like a leaking refrigerant line might run you a few hundred dollars, but if you have to replace the unit, you’d be looking at a few thousand.
Other big household appliances and systems like the fridge and water heater can mean a significant chunk of money if they go out suddenly. Emergency plumbing situations always seem to happen after hours when the rates are highest, but you can’t ignore a burst pipe or overflowing toilet.
Even in an emergency, you should do a little homework before you get a loan. You want to make sure you’re getting a loan that won’t cost you more than you can afford or require paying off faster than you can afford.
Start by looking at the affordability of the loan, which tends to mean the one with the lowest annual percentage rate. Compare the APR among loans, but also against cash options like a credit card advance. Look at what the monthly payments would be to ensure they will fit within your budget.
Double-check for any fees you have to pay and compare across lenders. You’re looking to see if the same fee is charged by all and how the rate differs.
The last thing to be looking at is how quickly you can get your money. Some can get you money the same day, while others could take a week. The timing might depend on whether they consider your credit score and history before approving the loan, and whether it is unsecured.
In an ideal world, we would be able to plan for all the expenses in our life. But when the unexpected happens, emergency same-day loans can help cover the costs so you have one less thing to worry about. Whether something breaks or you lose your job, you can focus on fixing the issue and getting life back to normal rather than worrying about how to pay for it.
Need to know more about emergency loans? Check out our blog for more tips and advice on taking out personal same-day loans to help you over life’s rough patches.