This past week, my husband and I received some unfortunate, unexpected financial news. The monthly payment on one of my husband’s student loans, which has been on income-based repayment, recently skyrocketed from about $15/month to about $500/month. We expected the loan payment to increase because my husband got a new, higher-paying job and we filed our taxes jointly in 2014. That being said, we never anticipated such a LARGE jump!
In anticipation of an increase in this loan payment, we had reached out to the loan servicer in February to ask for an estimate and we were told the new payment would be $60/month, which was well within our budget. After we submitted the forms for income-based repayment earlier this summer, we received a bill for over $600. We again called the loan servicer and were told that there was an error and the payment should only be $200. We resubmitted the forms and received a bill for $500, we called yet again and we were told that was correct. Needless to say, it has been a frustrating process with an unexpected, negative outcome.
So, how do you handle the financial unexpected? We know that this is not the first or the last time that we will have unexpected changes in our financial situation, so this is a good time for us to learn how to handle these things that sneak up on us. Some unexpected situations that you may run into are: car repairs, unanticipated move, increase in bills, unexpected medical expenses, etc. These might be large or small, ongoing or just one-time, but either way these unexpected expenses can through off your budget. Here are some ways to tackle these challenges:
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This past week, my husband and I received some unfortunate, unexpected financial news. The monthly payment on one of my...