While Halloween is a time to celebrate scary stuff, you probably don’t want to be frightened by your finances.
While you may try to avoid scary financial situations at all costs, you never know when something bad will pop up and throw you for a curve.
A recent study found that Americans’ three biggest financial fears are: 1) Not saving enough to retire; 2) Having no financial safety net; and 3) Not being able to get out of debt.
Take our poll and tell us what your biggest financial fear is and then read on for some insight into how to deal with those fears.
1. Not Saving Enough for Retirement
This is a big fear of many people, and for good reason: approximately half of families in the United States have no retirement account savings.
If you’re concerned about this, there are three things you need to do:
- Review your current savings
- Decide how much money you need to comfortably retire at your desired age
- Implement a strategy for saving an appropriate amount of money each month
With so many other expenses in your life, it’s easy to slip behind on your retirement savings. Don’t let this financial fear turn into reality.
2. No Money to Pay for an Unforeseen Emergency
You hope that you never face a financial emergency, but there’s always a chance that you could find yourself in a tight spot – car breaks down and suddenly it’s difficult to get to work, for instance.
There are many scenarios that could lead to financial trouble, such as an illness that prompts you to quit your job or serious damage to your home that’s not covered by insurance.
If you have an emergency account, you’ll know where to turn for funds. Unfortunately, approximately 57 million Americans have no emergency savings.
Does that sound scary to you? If so, now’s the time to start an emergency fund. Remember this: any bit of money you save for an emergency is better than none at all.
3. Struggling with High Interest Debt
Did you know that the average American family has more than $16,000 in credit card debt?
Every month, many people do their best to dig out of this hole. But with all the expenses a household has to juggle, it’s not always easy to manage. Debt can also pile up from auto repairs, medical expenses, back taxes and a number of other personal situations.
4. Receiving a Foreclosure Notice
There is no worse feeling than receiving a foreclosure notice from your lender. This will immediately send chills down your spine, as you realize just how serious your situation has become.
Every three months, 250,000 new families enter into foreclosure.
Although you are not alone, it doesn’t make your situation any less scary. Here are some immediate steps to take:
- Read the foreclosure notice from beginning to end
- Review your situation to get a better idea of how far behind you are on your mortgage payments
- Reach out to your lender to discuss your options (it’s never a good idea to hide)
5. Medical Expenses Uncovered by Insurance
There are a number of common medical procedures that are not typically covered by health insurance.
However, if these procedures could alleviate pain or improve the quality of your life, you might want to proceed anyway.
In fact, a recent Discover Personal Loans survey found that 26% of people cited medical expenses as the most popular potential use of a personal loan.
Meanwhile, the average person spends more than $10,000 a year on health costs.
Exorcise Your Financial Demons This Halloween
Halloween may be scary, but these financial situations can cause a lot of stress and anxiety.
It may be a good time to learn more about how personal loans could help you save money in the long run.