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How to Prepare for Unexpected Events

 

 

An unexpected event can affect a person’s financial situation at any given moment. To lessen the impact, you should prepare for emergencies by creating a financial plan. Here are 6 steps you can take to prepare for unexpected events.

  1. Start an Emergency Fund. You should have 6-9 months’ worth of expenses saved in your emergency fund. This will help you stay financially afloat if an unexpected event occurs.
  2. Check Your Insurance. It is vital to ensure you have sufficient insurance to cover your circumstances. This includes potential health, car, home, or renters’ insurance coverage.
  3. Plan for Natural Disasters. Depending on where you live, you should have flood, hurricane, or earthquake insurance. Organize your financial documents so you can easily bring them with you anywhere.
  4. Negotiate with Lenders. Call your lender ASAP if you’re unable to pay your debt due to an emergency. Calling your company can result in a lower interest rate, waived fees, & more. Enroll in a debt management program if you don’t receive help from your creditor.
  5. Make a List. Write down all the potential events that could happen. Determine how much each would cost you and what your action plan would be.
  6. Create a Backup Budget. Review your budget. Cut out unnecessary expenses so you have more money saved in case of an unexpected event.

For individuals and families trying to figure out how to pay off debts, American Consumer Credit Counseling (ACCC) provides non-profit credit counseling, credit card reduction and consumer debt management services for consumers nationwide. Our certified credit counselors provide financial education for anyone wanting to learn how to get out of debt and how to eliminate credit card debt. As alternative to expensive debt restructuring services and credit card debt consolidation loans, our debt management plans are a kind of credit card relief program that have helped thousands of people pay down credit card debt by consolidating payments and reducing interest rates and finances charges. We also offer bankruptcy counseling, housing counseling and other financial education services for help getting out of debt.

American Consumer Credit Counseling - Consolidate Debts - Better Business Bureau American Consumer Credit Counseling - Consolidate Debts - Mass Housing Approved National Industry Standards for Homeownership Education and Counseling American Consumer Credit Counseling - Consolidate Debts  - Council on Accreditation American Consumer Credit Counseling - Consolidate Debts  - NFCC Member