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All of us can get an urgent need for a supplement at the checkout at some point. The most likely thing is that you happen to have a slightly larger unexpected expense and that there is simply no money to handle this.

If it is about something that has to be paid – that the car, fridge / freezer or something else that you cannot be without breaks or if you have to go to a doctor / dentist etc – then you simply have to find a way to get the money.

You have saved a buffer that can be used just for these occasions

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Buffer savings are for these particular situations, when you receive unexpected expenses that you cannot manage within your regular monthly budget or if your income would suddenly decrease. If you have a buffer, you can then borrow some of that money to solve urgent / sudden need for money. If you do not have a saved buffer it becomes more difficult and this is when you can have problems.

In this article I was going to go through a little how to deal with an acute money shortage and how NOT to act. There are both good things you can do and bad things that really only make the situation worse. By managing the situation properly, one can minimize the risks in one’s economy and avoid further financial problems.

First of all for those who do not have a buffer

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This article will mainly provide tips to those who have no major buffer saved. Those who have an ok buffer are usually able to handle unexpected expenses and urgent need of money simply by taking from their buffer. It’s like the point of it. Then you can slowly but surely fill up your buffer again in the coming months, at a level that will fit within your monthly budget.

It is especially when you miss this buffer that an unexpected cost can be problematic because you have no obvious way to find the extra money. If you do not have money saved that you can use then you have to find other methods and these are rarely as good as using your own money.

The tips here are mainly aimed at those who for one reason or another have no buffer or have a very small buffer. If you have a buffer and put money into it every month, it is just to congratulate – then you work towards a safer and more stable economy and protect yourself from unexpected problems.

Loans to handle unexpected expenses

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One of the most common ways of managing unexpected expenses and an urgent need for money is just to take out a loan. This, of course, if you do not have saved money that you can take from. A loan is also a perfectly ok solution to the problem, but it is important to act and think correctly when you borrow, otherwise the risk is that you will have even more financial problems ahead.

In some cases, a loan is the most obvious solution for raising money. Some things are difficult to buy or do if you could not lend them money. One such thing is, for example, buying a home. However, this is a planned cost and a mortgage is a given way to go when buying a home. For unexpected expenses and the like, a loan can still be the right way to go, but you have a few other conditions.

Loans can be dangerous for the economy if you take them for the wrong reasons or if you borrow money when you are unable to repay them properly. As long as you know that you will be able to repay your loan without any problems, there is no danger to borrow. However, one should know that a loan always involves an extra cost because you have to pay interest on the money you borrow.

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