Get a free, no obligation personal loan quote with rates as low as 6.99%
Get Started You can apply with no effect to your credit score

Sponsored by

Fairstone Canada

For this blog, we’ve teamed up with our partners at Fairstone.

“What can I do in a financial emergency?” – Don’t worry; it happens to all of us. Even if you’ve tried to prepare yourself for the unexpected, we’re often faced with larger expenses than anticipated. Luckily, our partners at Fairstone shared some advice on how to handle financial emergencies and unexpected expenses.

Cut out expenses to create more room in your budget

You might have more room in your budget than you think. Try to cut out any unnecessary or ‘luxury’ expenses for the month. Yes, this means you might have to sacrifice going out for dinner, your morning coffee run or buying new clothes, but you’ll be relieved to find some extra money to put towards your unexpected expense.

Find a way to increase your income

An even better way to cover expenses is finding a way to earn some extra money, so you don’t have to cut as much from your budget. Depending on the extent of the expense you’re facing, you can sell items you don’t use anymore, do freelance work, or even get a part-time job.

Homeowners – take advantage of the equity in your home

If you’re strapped for cash, the value of your home can help you secure a loan and gain access to a lower interest rate. A home equity loan or a secured loan can help you cover emergencies like home repairs, car repairs, medical bills and more.

Using credit cards for emergencies? Consider debt consolidation.

While it may seem like a good idea at the time, charging unexpected expenses to a credit card can add up very quickly. Credit cards only have a 21-day grace period before you’re charged interest on the balance. Unfortunately, this isn’t always enough time to bounce back from an unexpected expense, and if you’re not paying off the full balance you may get into a cycle of accruing interest.

If you’re carrying a balance on your credit card, a debt consolidation loan may help you get back on track. Debt consolidation can help you save money on interest, and give you confidence that your debt is decreasing. Rather than making only minimum payments you’ll pay back the loan through a set number of payments on a schedule that works for you.

Prevent emergency expenses from happening in the future

It’s important to make a plan to tackle different types of unexpected expenses. You may be faced with anything from home and car repairs, to an expensive dentist bill, or even a sick or injured pet. Does your car always need repairs? It may be cheaper to buy a new car or consider finding a different mode of transportation like biking or walking. Additionally, make sure your insurance deductibles are affordable. While insurance may increase if you opt for a policy with a lower deductible, it will help if you’re ever faced with damage or accidents in the future. On that note, insurance is useful for more than just cars and homes. Pet insurance can help cover unexpected vet bills or procedures for your pets.

Learn how to budget for future financial emergencies

Fairstone’s blog has several articles to help you learn about and prepare for financial emergencies and unexpected expenses. Here are some articles that may be of interest:

Lastly, the biggest mistake you can make when it comes to unexpected expenses is thinking they’ll go away on their own. While it may be hard to dig yourself out of an emergency, it’s better to make a plan and act as soon as possible. If you tackle expenses head-on, you’ll be back on track sooner than you think.

Caitlin Wood avatar on Loans Canada
Caitlin Wood

Caitlin Wood is the Editor-in-Chief at Loans Canada and specializes in personal finance. She is a graduate of Dawson College and Concordia University and has been working in the personal finance industry for over eight years. Caitlin has covered various subjects such as debt, credit, and loans. Her work has been published on Zoocasa, GoDaddy, and deBanked. She believes that education and knowledge are the two most important factors in the creation of healthy financial habits. She also believes that openly discussing money and credit, and the responsibilities that come with them can lead to better decisions and a greater sense of financial security.

More From This Author

Special Offers

More From Our Experts
Loans Canada places No. 228 on The Globe and Mail’s fifth-annual ranking of Canada’s Top Growing Companies.

By Caitlin Wood
Published on September 29, 2023

Loans Canada is excited to announce it has made it onto the Globe and Mail’s Top Growing Companies list for the second year in a row.
Finder Awards Finalists: Personal Loans Customer Satisfaction Awards 2023

By Priyanka Correia

Loans Canada is happy to announce it received the finalist award in the Best Personal Loan Search Platform category.
Beware of Fraudulent Lenders Impersonating Loans Canada

By Caitlin Wood

A note to our clients about fraudulent lending practices and illegal upfront fees.
Debt Consolidation Loan Rejection: Reasons and What Can You Do?

By Bryan Daly

You applied for a debt consolidation loan to finally start tackling your debt but then you got denied. Now what?
Statute of Limitations In Ontario For Debt

By Lisa Rennie

Everything you need and want to know about the statute of limitations in Ontario for debt.
Quebec’s Bill 31: Are Tenant Rights At Risk?

By Maidina Kadeer

Quebec's Bill 31 is an amendment to rental provisions. The bill includes the controversial cancellation of lease transfers.
How To Manage Debt: Credit Cards, Mortgages, And Beyond

By Lisa Rennie

From mortgage debt to consumer debt we have the top tips you need to learn how to manage debt responsibly and effectively.
Canadian Debt Collection Laws: How To Stop Collection Harassment

By Lisa Rennie

Are you currently being harassed by a debt collection company? Learn about the Canadian debt collection laws.

Recognized As One Of Canada's Top Growing Companies

Loans Canada, the country's original loan comparison platform, is proud to be recognized as one of Canada's fastest growing companies by The Globe and Mail!

Read More

Why choose Loans Canada?

Apply Once &
Get Multiple Offers
Save Time
And Money
Get Your Free
Credit Score
Expert Tips
And Advice

Build Credit For Just $10/Month

With KOHO's prepaid card you can build a better credit score for just $10/month.

Koho Prepaid Credit Card