Everyone encounters unexpected expenses at some point in life. Most of these expenses come at a time when we don’t have money, forcing us to accrue huge debts. Here are the top five most common unexpected expenses you need to know.
1. Injuries and Serious Illnesses
Injuries can occur due to car accidents, trips, or falls. An injury, especially if it is severe, can force you or your loved one to visit an emergency room for medical attention. This leads to unexpected medical bills and emotional trauma.
The same applies to a sudden illness such a heart attack, stroke, and shock. You can limit your financial exposure by signing up for a health insurance plan. You can, also, opt for an additional income protection insurance plan to make sure you have a steady source of income as your recover.
2. Car Accidents
Your car may be damaged in such a way that it cannot operate. In such a case, you will require a towing truck to come and help you move it from the accident scene. Pedestrians and other drivers may, also, be injured in the accident, forcing you to incur extra medical costs — which is why it is important to determine who is at fault for the accident.
This can cause a financial strain and emotional stress, especially if you don’t have enough money to handle the situation. It is important to have auto insurance to avoid the financial consequences associated with car accidents. A must-have tool to avoid any dashboard problems would be a OBD2 Scanner.
Some insurance companies have products for uninsured drivers. This option is ideal since uninsured drivers are unavoidable on the road.
3. Home Problems
Plumbing and electrical problems, in the home, usually occur without warning. Plumbing problems can include dripping faucets, leaky pipes, running toilets, and clogged drains. Electrical problems can include flickering bulbs, tripping breakers, and dead outlets. These problems lead to extra repair and replacement costs. A good approach to remaining financially secure during such events is to open an emergency account.
You can then save part of your salary to the account, on a regular basis. On top of starting an emergency account for these repair items, you should always be sure to have some insurance for yourself. Even if you’re just renting, renter’s insurance only costs a few hundred dollars per year on average and can be a lifesaver in a time of emergency so take the time to educate yourself.
4. Pet Emergencies
Just like sudden illnesses, pet emergencies can lead to unexpected medical expenses. The most common emergencies include seizures, severe vomiting, blunt force trauma, and choking. Most of these emergencies cost a lot of money to correct.
Urethral obstruction surgery can cost as much as $2,700. Other surgeries, such as ruptured disc repair, can go as high as $5,600. You can protect yourself by signing up for a pet insurance plan. Other clinics offer payment plans in the form of deferred-interest credit cards. These options will give you some peace of mind, especially if you don’t have savings on hand.
5. Technical Problems
A technical problem occurs when a laptop, phone, or tablet suddenly becomes faulty or breaks. Repairing a phone can cost you between $300 and $1,000. You need to set money aside in your emergency saving account to deal with such problems. You can, also, sell the things you do not need to sort out the problem.
Another alternative is to apply for an auto loan with your car title. Auto loans take a few hours to complete and do not require your credit report when determining qualifications.