Ways to Cover Emergency Expenses

Use this list to find some ways to cover emergency expenses.  Be sure to read the pros and cons of each strategy to make sure you find the solutions that work best for you.

Figure out your rights as a consumer to see if someone else may be obligated to cover some or all of the expense.  You may already be covered by a service contract, warranty, or insurance.  Or, if you made the purchase using a credit card, you may have some protection.

Pro:

• You may find that some or all of your emergency expense is paid for.

Con:

• It will take some research to understand the fine print on disclosure documents. 
• This might also require time that you do not have if the emergency is pressing.

Make some money on the side.

Pro:

• You may be able to use earnings made from a temporary part-time job to pay for your emergency expense.
• You can also use this income to build an emergency fund.

Con:

• If the emergency expense is pressing, you may not have the enough time to work for the needed funds.                                                        

Sell unused or unwanted items.

Pro:

• Selling unused or unwanted items that you already own in a yard sale, on Craigslist, or local classified websites could earn the money you need to take care of the emergency. 
• As an added bonus, you will be de-cluttering your home!

Con:

• You may not have enough unwanted items to sell to produce the needed funds. 
• Also, you may not have the time needed to advertise and sell the item(s).                                                                       

Re-examine your budget.

Pro:

• You may discover some "spending leaks"[link to tool in the I can’t cover my expenses section] that you could plug.  You can then use that unspent money on your emergency.
• You use this new source of savings to begin to fund

Con:

• If your budget is already stretched thin, then you may not find anything to cut back on.                                                                                                                           

Borrow from family or friends.

Pro:

• Taking out an informal loan from family or friends lets you avoid the typical underwriting process of formal lenders. 

Con:

• Your relationship may weaken if you are unable to pay back the loan in the time period you agreed to.