Have you ever considered what you would do if you had an emergency and needed access to money in a hurry? If not, then now is the time to start planning.
Prepare now for emergencies
Mon, 19 Dec 2005
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Have you ever considered what you would do if you had an emergency and needed access to money in a hurry? If not, then Gail Roberts, CEO of the One Account from First National Bank, suggests that now is the time to start planning.
“Emergency situations come in many shapes and forms and few of us are ever well prepared for their financial effects. For instance, if you were retrenched, involved in an accident or your car broke down, would you have access to the cash you need to get through the situation?” she says.
Although it’s highly likely that many financial service providers would be willing to offer you some type of loan, unless you had been retrenched, Roberts adds that the time pressure of the situation often leads to people taking the route that will provide them the most amount of money, in the least amount of time, and at the highest cost.
“Emergency situations are not conducive to making good financial decisions and many people find that once the crises has passed they are stuck with a loan that they are unable to afford, cannot pay off quicker, or is just costing them too much,” she explains.
But which should come first: paying off your debt or setting up a safety net? According to Roberts, you should be working on these simultaneously.