Three out of four families in Spain struggle to make ends meet. Given this reality, any unexpected expense can be a real financial emergency.
Any financial setback can shake the family finances. In these situations, facing an unexpected expense without savings forces you to make quick, difficult, and sometimes inappropriate decisions. That’s why it’s so important to know how to act without making the problem worse and, above all, how to prepare so it doesn’t catch you by surprise again.
The impact of an unexpected expense when you have no savings
Facing an unexpected expense without any savings creates significant financial stress . According to the Bank of Spain, it’s ideal to have an emergency fund to cover these unexpected expenses. When you don’t have a financial cushion, any setback, no matter how small, can turn into a crisis .
Without savings, every euro that leaves your pocket unbalances your monthly budget . Many families live paycheck to paycheck, spending their entire income on fixed expenses like rent or mortgage, bills, food, or transportation. If these regular expenses are suddenly compounded by an extra payment, there simply isn’t enough money. This lack of financial leeway forces difficult decisions : Stop paying something important? Go into debt quickly? Ask family members for help? Neither option is comfortable, and time is short when the unexpected can’t wait. Therefore, these types of situations make the importance of financial education, planning, and prevention evident.
Situations where unforeseen expenses must be faced
To better understand the problem, let’s look at some real-life examples of unexpected expenses that can happen to anyone. Surely more than one will sound familiar:
- A car breakdown
- A medical emergency
- An essential appliance failure
- A breakdown of the air conditioning or heating
- A fine
- A mobile or laptop repair
- A flood or accident at home
- A higher than expected tax settlement
- An emergency trip
- A veterinary expense
The first steps to face an unexpected expense without savings
When you receive an unexpected financial blow and can’t manage it financially, it’s easy to panic. The first thing is to stay calm. As difficult as it may seem, you need to think clearly to avoid making hasty decisions. By following a few steps , you can get the situation back on track with a reliable and safe plan:
Analyze the situation and the urgency of the unexpected expense
Determine exactly how much money you need and when. A payment due tomorrow isn’t the same as one you can find an alternative to because you have a few weeks to spare. Knowing the exact amount and the deadline will help you find the most appropriate solution and, above all, act in a timely manner.
Review your current expenses
Look at your monthly budget . If you don’t have one, make a quick list of your essential expenses. Identify if you can cut back or delay any non-priority payments this month to allocate more money for unexpected expenses. For example, you might be able to limit non-essential purchases, entertainment, or digital platform subscriptions for a while.
Contact the appropriate person
If the financial emergency comes from a supplier, organization, or company (for example, an invoice, rent, or a payment to the Treasury ) , contact them immediately . Explain your situation and ask if they offer any options, such as splitting the payment, obtaining an extension, or negotiating a temporary solution. Keep in mind that many companies and organizations prefer to agree on a payment plan rather than face a default .
Look for small sources of liquidity
Gather whatever money you have available . Maybe you have a small amount of savings you forgot about, or some money you were hoping to use for something less urgent. It’s not a complete solution, but every euro helps reduce the amount you owe.
Other resources to get money for unexpected expenses
If you still need money to cover the unexpected, it’s time to consider some available financial solutions . We review several options, with their pros, cons, and recommendations:
Request a payroll advance
Perhaps one of the simplest options is to request an advance on your salary from your company. In Spain, the law protects this right : according to Article 29.1 of the Workers ‘ Statute , you can request an advance payment of part of your salary for days already worked in the month instead of waiting until payday. Many companies agree to give advances to their employees, then deduct that amount from their final paycheck.
A payroll advance has several advantages . For one, you don’t pay interest, as it’s your own money simply collected upfront. Another positive aspect is that it’s usually quick to process (by speaking with Human Resources or your direct supervisor). However, the main drawback is obvious: you’ll live for the rest of the month on less or no pay if you received the full amount in advance, so you’ll have to adjust your expenses significantly later. Ask for only what you need and plan how you’ll adjust until the next paycheck.
Request money reliably with Cofidis
Some of Cofidis’s flagship products are direct credit and personal loans , which allow you to obtain money whenever you need it. Unlike other improvised options, with Cofidis you’ll find clear conditions and the backing of a regulated entity.
Cofidis Direct Credit
Cofidis’ direct loan is a quick and easy solution for when you need a moderate amount of money with little paperwork. With a 100% online application , you can obtain anywhere from a few hundred euros to several thousand, depending on your needs. Unlike informal express loans, Cofidis offers transparent terms: you’ll know the applicable interest rates and fees in advance.
To make the most of this type of credit, it is advisable to be cautious:
- Review the terms: Although Cofidis offers clear terms, always check the interest rates and potential late fees. This way, you’ll avoid surprises and know exactly how much your loan costs.
- Order only what you need: Ask for the exact amount you need. Every extra euro increases the final cost, so avoid ordering more than you really need «just in case.»
- Plan your payment: Allocate your next income or salary to repay the loan as quickly as possible. With short payment terms, it’s important to be disciplined to pay off the debt without extending it.
Cofidis Personal Loan
The Cofidis personal loan is the ideal option if you need a larger sum or a longer repayment period. With this product, you can finance large expenses (such as renovations, studies, or the purchase of a car) without having to resort to traditional lenders. Unlike quick loans, the terms can be extended over several years , allowing for more affordable monthly payments.
Because it’s a loan from a well-established institution, you’ll enjoy benefits such as:
- Lower interest rates: In general, the total cost is lower than that of an express loan, since you have more time to repay the money and the terms are usually more advantageous.
- Security and professionalism: When you process your transaction with Cofidis, you’re dealing with a regulated entity (like any bank). This provides confidence and protects you against any unforeseen events.
- Process at your own pace: Although approval may require verification of your income or credit history, it’s still an online process. It will only take a few days to complete, which is reasonable for medium- to long-term needs.
Please note that, as with any loan, Cofidis will evaluate your income and financial situation. Even so, the institution strives to make the process as accessible as possible, adapting to clients who seek speed without sacrificing clarity in the terms.
Use of credit cards
If you have a credit card , you might consider using it to pay for a financial emergency. In fact, many people turn to a card when they’re short on cash because it allows them to defer payment. Using a card can get you out of a tight spot, but be very careful : eventually, the card debt will also have to be paid, and the interest can be high (20% APR or more).
Some cards allow you to finance purchases over several months interest-free or with discounts if you have agreements with certain stores. But in general, what usually happens is that many people only pay the minimum monthly amount on the card , entering a spiral of debt . Avoid paying only the minimum at all costs, because you could end up paying double or triple the original amount over time. Cards can be allies or enemies, depending on how you use them.
If you use a credit card, do it like this:
- Only charge the essential amount of the unforeseen event to the card .
- Plan to pay most (ideally all) of your balance on your next credit card bill to avoid interest. If you can’t, set your installments as high as possible.
- Don’t use it for other expenses while you have the outstanding balance, so you don’t increase the debt snowball.
Negotiate with creditors or seek deferrals
As we’ll explain below, sometimes the solution isn’t to raise extra money, but to buy time or reduce the pressure of immediate payment. If the unexpected event is a debt owed to someone, try negotiating. We’ll explain the different options available to you when negotiating:
Deferral or installment payment
Many government agencies allow debt settlements. For example, the Treasury and Social Security have procedures for deferring the payment of certain fees or taxes. Generally, you’ll have to pay moderate late payment interest, but it’s better than defaulting or taking out an unfair loan.
Refinancing
If the unexpected expense is added to other debts you already have, it may be helpful to talk to your bank about debt consolidation or refinancing . A consolidated loan with a lower lump sum can give you some leeway during critical months.
The important thing is to communicate and demonstrate your willingness to pay. Ignoring the debt only makes the problem worse, as it could lead to late fees, service interruptions, legal action, and more.
Help from family or friends
In difficult situations, it’s worth considering turning to family or close friends who can lend you money. This option has the advantage that, if they agree, they typically charge you no interest or very low interest, and you can agree on more convenient terms. Many people have gotten out of trouble thanks to family.
However, handle this alternative with great tact . Money can strain personal relationships, so:
