When you experience some type of insured loss, it can be a stressful time in your life. As if dealing with the aftermath of the event itself isn’t enough, you also have to figure out how to meet your budget, even in cases where the insured event has left you out of work. Waiting for an insurance reimbursement can be one of the longest and most frustrating periods in your life. To help make this time a little easier, it’s important that you know your options for paying for expenses. To ensure you’re prepared when tragedy strikes, here are three ways to pay for expenses while waiting for insurance reimbursement.
Credit Cards
Credit cards provide plenty of options when it comes to paying for your expenses. You can use your credit card to pay for bills using the credit account, or you can take a cash advance, usually at a higher interest rate, to provide cash in your checking account to pay for expenses that are withdrawn directly from that account.
Be mindful, however, that every purchase with a credit card puts you in debt, meaning that you could find yourself in financial trouble down the road if you don’t work hard to pay your card on time. This can be an attractive option, though, if you’ve recently opened your card and have a low introductory interest rate.
Payday Loans
Payday loans are another good option when you’re in need of some quick cash to pay for your expenses. The nice thing about a payday loan is that it’s paid entirely in cash, meaning you can use it however you want instead of being limited like you can be with a credit card. Plus, payday loans are often easier to pay back than a credit card, as they are more of an advance on a future paycheck than an increase in your debt load. With your insurance reimbursement on the way, a payday loan can make a great option.
Selling
While a side job may not be an option for you as you wait for insurance reimbursement, one thing you can do to earn extra money is to sell unused items around your home. Though this is the slowest of the three options, the biggest perk is that this is new income, meaning you can still use the entirety of your insurance reimbursement once you receive it.
It’s important, though, that you carefully consider what you’re selling, because once it’s gone, it’s gone for good. Consider, then, whether you’re selling something because you truly don’t need the item any more or if you’re panicking and only considering selling it because you need some quick cash.
Stay in the Know
One of the most difficult aspects of waiting for insurance reimbursement is the unknown. Not knowing how long it will take to receive the reimbursement can cause you to take financial gambles that you probably normally wouldn’t take. If you can, then, it’s a good idea to reach out to the insurance company, jumping through all the required hoops until you find out just when your reimbursement is expected to arrive. This restoration of clarity will put your other choices in perspective.
Author information: Brooke Chaplan is a freelance writer and blogger. She lives and works out of her home in Los Lunas, New Mexico. She loves the outdoors and spends most of her time hiking, biking, and gardening. For more information, contact Brooke via Facebook at facebook.com/brooke.chaplan or Twitter @BrookeChaplan
