Life has a way of going sideways when you least expect it, and that unexpected event usually involves a large financial expenditure. Sometimes you can cover the expense, but it can also happen that you’re unable to afford a majority of the cost without tapping into your resources. Ideally, you would have money set aside for the emergency and handle it with ease, then rebuild your reserves. However, what do you do when you have more than one financial emergency happening within a short time frame?

Here’s a look at some of the ways you can handle the unexpected by planning and knowing about the different types of alternative lending you can apply for.

Stop spending money

Chances are that you spend money on incidentals for convenience and pleasure. These incidentals have a way of adding up quickly, but the expenses are manageable. However, they become unmanageable when you have a brand-new debt that you didn’t see coming.

If you track your spending on incidentals, find where you can cut back and hold onto the money you would otherwise have spent. Alternatively, instead of tracking you can put a stop to your daily habits and avoid buying things you don’t need. You’ll find you have more cash available to pay your debt.

Build an emergency fund

Building an emergency fund is a proactive measure that anticipates a future need. In other words, you’re setting aside a defined or undefined amount of money to pay for an emergency. Once the money has been spent, you need to rebuild your fund for another future event.

There are a few ways to save up an emergency fund. You can build it based on the replacement cost of your most expensive item that isn’t covered by insurance. Or you can set an amount and stop contributing once you’ve reached the goal. Last, but not least, you may prefer to keep putting money into the fund without limit and let interest accrue on the balance to have a little extra.

Ask for a payment plan

It never hurts to ask if a payment plan is an option or if the service provider will work with you in paying down the debt over time. Not all service providers have an upfront statement about payment plans, but that doesn’t mean you should assume that the service provider doesn’t offer them. These types of businesses are aware that not everyone has money available to cover the cost of an emergency, and are willing to work out a payment plan.

Keep in mind that the terms of a payment plan from the service provider may be less forgiving than you’d like. That is, the payments are higher and due more frequently than they would be with a lender. The trade-off is one of getting a replacement item or repair without putting out a large sum of money all at once.

Get a personal loan

A personal loan is a type of unsecured loan that is paid back according to the terms that are offered. Some types of personal loans have a set interest rate that amortizes over the life of the loan, while other types charge a fee based on the amount that’s borrowed. Make sure that you can tolerate the repayment terms before you go ahead and apply for the loan.

Same-day loans, sometimes known as payday loans, provide you with fast funding but usually have to be paid back when you get your next paycheck. Depending on the lender, you’ll have to pay fees or a high APR. When you’re shopping for a payday loan, check that the lender has flexible terms in the form of multiple payments and has reasonable interest rates or fees.

Consider additional sources of income

You most likely have steady employment, but if your income is strictly budgeted with no way to get extra money, you’ll want to find another source of income. Bringing in additional funds helps you pay down your outstanding debt sooner rather than later.

Engaging in the gig economy is a great way to find extra money without committing to a second job and its schedule. Rideshare and delivery apps let you work whenever you want, pay relatively quickly, and have a low barrier to entry. The same goes for academic survey sites, micro-tasking, and even receipt apps that let you trade your points for cash. Once you’ve earned enough to pay the debt back, you can quit without repercussions.

Calm down and assess the situation

You need to take a good look at the situation you’ve found yourself in before you take action. First, if you’re panicking, do your best to calm down and relax a little first. Calming down helps you clear your head, lower your anxiety, and get yourself into a logical/planning frame of mind. Then you can begin to figure out what’s going on and why you’ve found yourself in a financial emergency.

Any number of incidents can happen that put you in need of cash. For example, you’ve been in a car accident that’s resulted in the loss of your car. A car accident lawyer can help you recover the value of your vehicle and compensation for injuries you sustained, but you’re going to need money for the initial recovery period after the accident. This is the time when you look at your options, who you can ask for help, and where you can find short-term funding that you can pay back once you get your settlement.

While the example is based around the aftermath of a car accident, it can be applied to any situation where you need money fast. You make better decisions when you keep your head clear and free from distractions.

Planning for a rainy day makes it easier to handle a financial emergency

Experiencing a financial emergency is almost a given when it comes to life, but you don’t have to let it become disabling, either. Setting aside money in an emergency fund is the best action you can take to protect yourself from calamity. However, if you don’t have enough set aside, slow down and look at your options to find the rest of the money. You’ll find that you can easily take care of the emergency and recover quickly.

Ashley Nielsen

Ashley Nielsen earned a B.S. degree in Business Administration Marketing at Point Loma Nazarene University. She is a freelance writer who loves to share knowledge about general business, marketing, lifestyle, wellness, and financial tips. During her free time, she enjoys being outside, staying active, reading a book, or diving deep into her favorite music.