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Broken Cars, Broken Bones, and Broken Finances: How to Manage Your Money after an Accident

Finances can be a stressful enough part of life but they are even more stressful if you end up experiencing a life emergency such as an illness, injury or accident. On top of dealing with the pain of the injury and the hassle of  doctors and insurance, you now have to concern yourself with how the accident will affect other aspects of your life.

Transportation

A number of new problems are now a concern. You might need to rent a car while you wait for your vehicle to be repaired, or even need to look into buying a new car if the damages are too costly to warrant repair. You’ll need to be able to run your errands and get to your appointments, especially if you’re involved in a personal injury accident.  The costs will quickly add up so you should also have all of your expenses documented.

Look at Your Budget

Examine your current financial situation to develop a plan moving forward towards the future. Ideally, you have some money in your savings account to cover unexpected expenses or to pay for regular expenses if you need to take time off work without pay. Even a few days out of work due to an injury can create a financial catastrophe if you are living paycheck-to-paycheck. If you don’t have the funds for this particular rainy day, you’ll need to get creative to get by.

Prioritize Expenses

List your necessary expenses and any sources of money that you have coming in. Only list your needs and not your wants. These include your mortgage, utilities, and food. Ask a friend or family member for a bit of help with paying for expenses if necessary until you can get back on your feet and stable. Other sources to reach out to for assistance such as discount programs for low-income or elderly individuals, community aid programs, your health insurance policy or a personal loan from your local bank or credit union.

Consult with an Attorney

If you’ve sustained an injury as a result of a collision, it is wise to consult with an attorney who can guide you through the process. You may be able to seek reimbursement for medical expenses, pain and suffering or lost wages due to the incident.

Side impact collision lawyer Abels & Annes, P.C. says “No type of vehicle accident is pleasant, but side-impact accidents are often particularly tragic, because of the high likelihood that there has been a serious injury or even a fatality. Dealing with the aftermath of an accident—insurance claims, medical bills, investigators, and so on—is not something anyone welcomes when they are also trying to deal with recovery from an injury, adjusting to a permanent injury, or confronting the grief of losing a loved one. If you have been injured, or someone you love has been killed in a side-impact accident caused by the negligence of another driver, the last thing you need is to deal with the “business” side of a serious accident. For most people, the hassle of dealing with the aftermath is not only aggravating, but completely unfamiliar and overwhelming.” 

Money troubles seem to multiply when something unfortunate happens, and a car accident is no exception to the rule. Take a close look at your finances and work out a plan.

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