Imagine the scenario: It’s 90 degrees outside and your central air conditioning system decides to take its last breath and sputter to a halt. You knew it was on its last leg; you’d just hoped it wouldn’t give up on you during a heat wave. But it has, and the repairman informs you it’s beyond repair; a replacement system will cost you $5,000. So now what?
According to a recent article in the Atlantic, (“The Secret Shame of Middle-Class Americans,” May 2016) 47% of Americans wouldn’t be able to come up with $400 (let alone $5,000!) in an emergency, except by credit card, borrowing or selling something.
If you are low on savings and a large, unplanned expense arises, here are the key questions you should be asking:
When a big, unexpected expense comes along, it doesn’t have to wreck your budget. Whether it’s an over-heated home or an over-the-hill automobile in need of sudden replacement, the best way to handle an emergency is to stay cool and carefully review your options.