What’s the Best Way to Pay for a Personal Emergency?

There is nothing more stressful than facing a personal emergency that has the potential to negatively impact your finances.

From a serious illness to a major car repair, you never know what you will face in the future. This is why you need to be prepared for anything that could come your way.

Although everyone is facing a different set of circumstances, here are some of the best ways to pay for a personal emergency:

• Emergency fund. Do you have a bank account in which you keep money to pay for future emergencies? If so, this is the first place to turn if you find yourself in this situation.
• Credit card. It may not be the ideal approach, but a credit card can help you pay for an emergency in a timely manner. It may result in future interest payments that you would have rather avoided, but there may not be any other option.
• Personal loan. Just the same as a credit card, a personal loan will allow you to pay for your emergency so you can move on with your life. Interest will once again come into play, but if this is your only option you may not have a choice.

In a perfect world, you would always have enough cash on hand to pay for a personal emergency. However, if this isn’t the way things work out, you’ll need to turn your attention to a variety of other options.

Keep your fingers crossed that you’ll never face a personal emergency that could put you in a tight financial spot. If this does happen, make note of the financial impact and then determine how to best move forward.

Have you dealt with a personal emergency in the not so distant past? How did you handle this from a financial perspective? Share your personal approach in the comment section below.