So you had an accident. Whether it’s your fault or the other driver’s, a vehicular crash can impact your physical, mental, and financial well-being. Such financial disaster is a stressful experience, especially if you have don’t have an emergency fund to back you up. Money management is a skill that proves to be of utmost importance in times like this.
Immediately after the accident, it’s vital to let your insurance company know about it. Report your claim as soon as possible as it can take weeks or months to finalize. The sooner you inform them, the quicker they can work on it.
To manage your money after a car accident, we’ve provided some power tips for you.
Be Calm And Evaluate Your Situation
It is easy to understand anyone who panics after being involved in an accident; however, remember that your emotions play a vital role in how things will turn out. You can shout at the driver of the other vehicle, but this won’t change anything and may only work to your disadvantage. We know being cool is the last thing you want to be when your emotions are all riled up, but you can’t think straight and evaluate the situation in that state. Don’t let stress get the best of you and carefully consider every aspect of the circumstance.
Prioritize Your Expenses
Since expenses vary in terms of importance and amount, it is worth examining and prioritizing them. Make a list of all your bills and other payments and determine which ones are the most important. Some expenses that should make it to the top of the list are food and shelter.
Once you’ve checked the most important expenses, identify those that can be cut out from your budget. Sure, it might not be what you totally want, but cutting them out is better than experiencing a greater financial backlash from the accident. You can always get the services back after you’ve established your finances again.
Negotiate With Your Lenders
If you have loans and debt before the car accident, you can discuss with them your situation now that you were involved in a car accident. Medical bills, credit card bills, and ever your mortgage can pile up quickly. Long before you receive those threatening letters and disconnection notices, make a call and see if you can negotiate it with them. Sometimes, lenders are willing to work with you and help you keep paying your debt following a less stressful structure.
Find Extra Money
If you think your income is not enough to cover your significant expenses and debt, not to mention the medical costs of your injuries from the accident, and you’ve already exhausted your emergency fund and savings account, you can opt to rely on your credit card or apply for loans. However, keep in mind that these, while they provide extra money, can worsen your situation and lead to a greater financial problems in the future.
There are many other ways to make extra money. Here are some of the most common:
- Find a part-time job
- Check with your family and friends
- Sell some of your things
- Tap available assistance offered by the government and organizations
Car accidents can happen anytime, anywhere. The best tip to manage your finances when such a crisis occurs is to have an emergency plan. It is also crucial to get help from an expert attorney. Click here to consult an experienced Chicago car accident attorney who can help you determine the legal repercussions of the vehicular crash.
Vicki is a law writing enthusiast who’s had over 25 years of experience in her field. She enjoys sharing her experiences with those who wants to learn more about the legal world, she is a writer of Abels and Annes P.C . In her spare time she spends quality time with her family and friends.