“It is important to come up with a well-developed plan should an unexpected event occur, such as a broken-down car, medical expense, or unemployment, so you don’t fall further into debt.
BOSTON (PRWEB) June 28, 2018
No matter how careful consumers are, their financial situation can change at any moment due to an unexpected event. Although consumers cannot control certain events, they can ensure they are financially prepared for them. To help consumers, national nonprofit American Consumer Credit Counseling (ACCC) provides a list of necessary financial steps to take to prepare for unexpected events.
“Things happen, and consumers should take steps to prepare for an unexpected event that could potentially hurt them financially,” said Steve Trumble, President, and CEO of American Consumer Credit Counseling. “It is important to come up with a well-developed plan should an unexpected event occur, such as a broken-down car, medical expense, or unemployment, so you don’t fall further into debt.”
According to a survey by the Federal Reserve, 40 percent of Americans cannot cover a $400 unexpected expense without borrowing money or selling an item. The survey also found that in 2017, 25 percent of Americans avoided medical care due to a fear of unwanted costs. Twenty percent of respondents say they are not able to pay their bills in full each month.
ACCC provides consumers with steps on how to prepare for unexpected expenses.
1. Have an emergency fund– An emergency fund will provide support in case of an unexpected incident. An emergency fund should be able to cover six to nine months’ worth of expenses.
2. Check your insurance – It is essential to make sure you have sufficient insurance to cover your circumstances, including potential health, car, home or renters’ insurance coverage.
3. Plan for natural disasters – If natural disasters are common where you live, it is crucial to ensure you have flood, hurricane or earthquake insurance.
4. Make a list – Make a list of potential events that could happen and figure out how much it would cost and what your action plan would be. This could include unemployment, major car expenses, medical
bills, family-related expenses, weather-related events, significant home expenses or repairs, last-minute travel and more.
5. Create a backup budget – Look at your budget and see where you could cut back if you experienced unemployment or an unexpected expense.
6. Work with creditors –If you fall into debt due to an unexpected event, you may be able to develop a new plan that will fit your new situation.
ACCC is a 501(c)3 organization that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:
- For credit counseling, and student loan counseling call 800-769-3571
- For bankruptcy counseling, call 866-826-6924
- For housing counseling, call 866-826-7180
- Or visit us online at ConsumerCredit.com
About American Consumer Credit Counseling
American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling 501(c)(3) organization dedicated to empowering consumers to achieve financial management through credit counseling, debt management, bankruptcy counseling, housing counseling, student loan counseling and financial education concerning debt solutions. To help consumers reach their goal of debt relief, ACCC provides a range of free consumer personal finance resources on a variety of topics including budgeting, credit and debt management, student loan assistance, youth and money, homeownership, identity theft, senior living, and retirement. Consumers can use ACCC’s worksheets, videos, calculators, and blog articles to make the best possible decisions regarding their financial future. ACCC holds an A+ rating with the Better Business Bureau and is a member of the National Foundation for Credit Counseling® (NFCC®). For more information or to access free financial education resources, log on to ConsumerCredit.com or visit http://www.consumercredit.com/financial-education.aspx