5 Ways to Prepare for a Financial Emergency

Financial emergencies usually don’t tell you when they’re coming—which is why they call them emergencies. Unless you’re an excellent fortune teller, they’re inevitable. Over time, they’ll catch up with us all. Whether it’s an unexpected car repair or a costly medical emergency, these financial crises have a way of hitting us when we’re least prepared. But what if DEXSTA told you there were at least five different ways we can help protect your financial future and lessen the burden of these unexpected costs? 

Financial emergencies don’t have to be a financial crisis. Here’s what you can do:

1. Create an Emergency Account 

According to NBC, just 40% of Americans can cover an unexpected financial emergency of $1,000 or more. If they’re not able to cover the cost, then they’re likely left to take out a loan or open a personal line of credit. Because of this, DEXSTA offers savings account services— the first step towards putting away money that keeps you protected. We also offer a variety of different loans and credit cards (with competitive rates) that help cover your expenses when you need it, especially if you’re not ready to cover such the cost if an emergency hits. 

2. Balance Out Your Credit Card Debt 

If you already have your fair share of credit card debt, the best idea is for you to balance out your payments and wipe that debt away. It’s no secret that credit cards have some of the highest interest rates. Compound that with missed payment fees and they can create a whole new kind of financial emergency. As long as you pay your DEXSTA credit card statement on time, then you’ll appreciate all of the benefits that come with enrollment in one of our programs. 

3. Open Up Your Credit Line

Building up a positive credit score requires individuals to have open lines of credit. Keeping the credit line as close to $0 as possible is ideal, but it’s also important you use your credit now and then for prospective purchases. This strategy will help you build your credit score. And this will allow you to get better rates on future loans when financial emergencies arise. 

4. Insurance is Protection

Insurance is essential for a lot of different reasons. Whether it be health insurance or home and auto, accidents happen, and it’s essential you’re covered when disaster strikes. For one, it’s illegal in all 50 states to operate a vehicle without proper auto insurance. Plus, you’ll receive a federal tax penalty for every month you’re not covered by proper health insurance. DEXSTA conveniently has credit union deals with insurance agencies like TruStage and Liberty Mutual, saving you money and time searching for the right protection. Make sure you get the coverage you need so you’re not stuck in debt for future years down the road. 

5. Diversify, Diversify, DIVERSIFY

You’ve invested your money in different accounts hoping for a big payday. But the ups and downs of the market can strike swift and fast. And it doesn’t necessarily care when a financial emergency impacts your life. So, make sure your investments are well diversified so that you’re not selling at a loss when that money should be there when you need it. 

Financial emergencies come in many different shapes and sizes. And it’s not always about how bad they are or what it’s going to cost. It’s about how you’ve prepared yourself for when trouble comes knocking on your front door. Contact DEXSTA today and protect yourself against the elements while looking out for your financial future.