How to Pay for an Emergency When You Don't Have Savings

It happens. The car breaks down, a pipe bursts in the house or your child makes an unexpected and uncovered trip to the emergency room. We all have emergencies that pop up. If you have a cushion in savings then it may be a small blip in your financial picture. If you don't have savings, however, it may be a scramble to figure out how you're going to make ends meet.


3 ways to help create emergency coverage--fast

1. Cut back and cut out. There are bills that have to be paid and money that has to be spent, no matter what your financial situation is. Then there are those expenses and bills that are not necessities. Redirect your splurge fund toward covering the emergency. It's amazing how quickly money that once covered eating out and cable bills adds up to enough to get the car fixed or pay an unexpected medical bill.

2. Beg and borrow. If you have family or friends you can turn to, borrow the money from them. Set up a repayment plan and put it in writing so there aren't any problems later.

3. Barter and trade services. If you provide a service or have a talent, try bartering and trading your services for the service you are need of. House needs a new roof and you own your own bookkeeping service? See if you can shave off the cost of the roof repair or cover the whole thing by providing bookkeeping services to the roofer.

It may be an emergency, but there is no need to panic. Stay calm and review all of your choices for raising the funds you need. Use these three ways to cover the cost, or come up with creative financing options of your own.