After experiencing a car accident, you’re probably worried about the future. Not only do you have the damage you might have to pay for, but it’s miserable if you suffer any injuries from the crash. Car accidents can be traumatic and require years of hard work and commitment. Add in the debt problem, and you know what awaits you ahead isn’t pretty. It’s not so easy getting out of debt.
Although you suffered a car accident, it’s time to get your life back on track. There are some financial and legal decisions to make. From getting your car fixed to learning how to adjust your interest rates, what to do when you’re in debt has never been more of an overwhelming question. Fortunately, with this guide, you’ll have help. Here’s how to recover when you’re in debt and have recently survived a car accident.
Look for Discounts When Hiring a Tow Truck Company
Looking for a tow truck company is the first step after an accident. By now, you’ve had time to respond to the accident and see if you’re injured. If so, you’ll need medical treatment, but if the accident’s not so severe, you’ll be tasked with arranging an emergency tow truck service. Hiring a tow truck company isn’t a task you want to skip. Leave your vehicle unattended, and it’ll get towed anyway. Be patient and make the call. Only now, you might have a more challenging time getting to the location.
Ideally, you can browse the Internet for discounts. Tow truck companies may offer discounts based on the time of day, the particular season, or as part of a promotion the tow service might be running. Rather than let your guard down, be wary of these discounts. Part of getting out of debt fast is saving every dollar you can. Consider the distance between you and the tow truck company before making the call. Since they charge for the space, you’ll want to call the closest company. Make sure you have the right company and number.
While you might be annoyed, there might be a reason for hope. Sometimes, tow truck drivers have the skills to conduct minor repairs, meaning they can get you back on the road. If your car’s not completely inoperable, consider giving a tow truck company a call if you’re not one hundred percent sure about the quality of the vehicle. Better to be safer than broken, especially now that you have debt.
Repair Your Vehicle and Keep it Well-Maintained
Once your vehicle arrives at the service station, a mechanic will begin work. Remember that repairing collision damage can take several weeks if you’re lucky. Your vehicle’s body will need extensive reconstruction. From the transmission to the tires to the brakes, the work is too much to take on your own. Whether your auto mechanic wants an alignment for the suspension or to replace your worn brakes, the combination of hard work and replacement parts will cost you money.
At the car parts store, you feel more than what to do when you’re in debt. Review your driving behaviors for patterns that suggest you’re overly aggressive. Whether your switching lanes too hard or grinding the tires into the asphalt, mechanical breakdowns are more likely to occur when you’re driving unsafely. If you go too fast, it slows down. If you’re being reckless with your vehicle, think again. Today you’re in debt, so you need to care for your car. At least this way, you’ll be closer to paying down debt.
In addition, regular car maintenance is essential. Engine failure is one of the most disastrous car problems, especially when driving on the road. If you’re not changing the oil frequently, you’re putting your vehicle’s engine at risk. If mechanical breakdowns frighten you, think about keeping up with your car. In the end, you’ll pay your debt off faster since you won’t have to keep bringing your vehicle to the mechanic. It’s a winning situation for you when you drive more carefully.
Set Goals to Pay off Debt
Set goals to pay off a debt to escape debt faster. Plans give you insight into the budgeting process. They keep you motivated, on track, and strong when moving backward. Setting goals means identifying your purpose. Why do you want to pay off your debt so severely? If the answer is to pay off creditors, that answer may be more than sufficient. But sometimes, the purpose is a little more detailed than that.
For example, you might want to pay off debt, so you have the benefit of having more financial freedom. Financial freedom lets you pay for what you want when you need it and fast. With financial freedom, you’ll have flexibility, control, and independence. Achieving financial wellness must be an important goal. Even with debt, start by making sure you have a purpose. From there, you can develop your plans for paying off debt.
To set goals, ask yourself what the most critical aspects of paying your debt look like. Does paying your debt mean you must have a set amount paid off by a specific time? Or does it mean you want an improved credit score by a particular time? Your goals for paying off debt can make or break your future. Think wisely.
Pay Bills Several Times a Month
What to do when you’re in debt? That’s right. Pay bills several times a month to escape debt faster. Debt mounts and becomes unbearable as the months go by, and all you’ve made is a single payment per month. During this time, you’re more likely to fall behind, your interest rates may only increase, and escaping debt will be more challenging. Pay bills off several times a month to build consistency.
While knowing what to do when you’re in debt is good, you may still wonder if you can afford to pay multiple monthly payments. Several monthly payments will help you build the habit of paying off debt first. While you may want to prioritize other goals, like saving, debt may matter more, especially since you recently experienced a car accident. From here, you’ll need vehicle insurance designed to help consumers pay off their debt quickly. Ensure you do your homework with insurance companies before asking for a quote.
If you’re working with cheap insurance companies, there’s a great chance you have enough money to pay your premiums quickly. Get there quicker by paying three times a month at the minimum. In this case, you’ll find that it’s better to work extra hours if you can afford to pay down debt several times a month. While your choices might become inconvenient and bothersome, paying off your debt faster gives you the sense of freedom that comes with knowing you don’t owe anyone anything.
Settle for Less Than You Owe
Another debt solution? Settle less for less than you owe. You may not realize it, but some of the best debt resolution companies have your best interest at heart. They may collect a lump sum payment from you every month to apply to a trust fund. When creditors see you have enough money in the account, they may extend a settlement offer. A settlement offer is critical when you’ve accumulated large amounts of debt, especially related to your car accident.
Just think, if you could save thousands, wouldn’t you? Insurance firms might not be in on the deal, but at the very least, you wouldn’t have to pay the whole debt amount. The extra money can go towards paying for a kids’ college fund or buying a new car. Whichever option is best for your future, trust that settling for less than you owe is the most affordable way to save money when paying off debt.
Hire an Attorney to Pursue Compensation
While you’re mulling over your injuries, it’s time to reclaim what you lost. Whether you’re confident the accident wasn’t your fault or you have doubts, an attorney is only a call away. Accident attorneys specialize in getting all of the details about an accident investigation. The attorney will study your version of the events and the evidence at the scene and then come up with the best way to represent you in a personal injury claim. Never underestimate the importance of an attorney. They’re only doing their best to help you.
Prioritize Needs Over Wants
Your basic needs include your food and shelter and the cost of medications. Paying to put gas in your car might also be considered a basic need, like paying for health care supplies, pet food supplies, and anything else you can’t afford to live without. The critical mistake to make at this point is to put your desires over your needs every chance you get. Prioritizing your needs over your wants ensures you’re always protected and in the most comfortable position.
Your wants involve anything you don’t need but would like to have. Expensive jewelry, video games, extra subscriptions, and extravagant clothing and accessories fall into the wants category. Place less of a priority on these purchases, especially now that you’ve recently survived a terrible car accident. Whether you progress with a vehicle rental company or check into a hotel near you, there’s no need to invest everything you have into your desires when doing so will put you in a less stable position.
To ensure you get your needs over your wants, ask whether you can do without a purchase. What would happen in your if you didn’t make that purchase? Often, you’ll see smaller purchases can wait until later, and more significant purchases might not be necessary at all. To ensure you get the best deals possible, always be sure you’re getting products you need before those you don’t. You’ll never forget the extra money in your wallet from that day forward.
Work Overtime and Add Additional Sources of Income
The more hours you can work, the more money you can make toward paying off debt. Check with your supervisor to see if you can get the overtime approved, and if you can, consider taking the extra hours. You’ll see that these opportunities don’t always come up as frequently as you might think. But what to do when you’re in debt? Add additional sources of income in the process. A combination of extra hours and more sources of income will help you get out of debt far faster.
Remember, debt accumulation often begins when you build up far more debt than you’re paying off. Consider adding other sources of income through freelancing or online money-making opportunities. Tasks like mystery shopping and taking surveys keep money flowing into your pocket. You’ll only need a few extra hours a day and can build income quickly. Consider the advantages of having an extra few hundred dollars or more in your bank account. Then, take the chance.
To succeed, take care to show the same level of discipline in worth ethic in your side hustles that you offer in your job. You’ll see that many of the most lucrative opportunities will still have a rather challenging learning curve. Master this curve, and you’ll see the revenue from these sources add up to your bank account quickly. When you think about recovering your vehicle from one of many car repair shops, stop and ensure you bring in enough cash for the family to enjoy. There’s a good chance you could be making more.
You know what you have to do to get out of debt. Why not get it over with? You’ve come so far. Take your time to make more money and add a side hustle to your life as you work out the details of the accident. A brighter future may be ahead if you wait.