Life Happens: Unexpected Life Expenses
Life doesn't always go as planned. Sometimes, despite our best efforts, we find ourselves facing unexpected challenges that can leave us feeling overwhelmed and uncertain about the future. Whether it's a sudden medical emergency, a car breakdown, or a home repair, unexpected life events can take a toll on your finances, leaving you with mounting debt and financial stress.
At MNP, we understand that life's unexpected expenses can disrupt your financial stability and leave you feeling lost. We're here to provide the support and guidance you need to navigate these challenging times and regain control of your finances.
“We've all experienced those moments when life throws us a curveball. My goal is to help individuals regain their footing after facing unexpected financial challenges, providing them with the tools and support they need to move forward with confidence.”
- Melanie Fuller, MNP Licensed Insolvency Trustee
Frequently Asked Questions
Signs that you may be in financial trouble include:
- Difficulty paying bills on time
- Dependence on credit cards to cover daily expenses
- Persistent worry or stress about money
- Ignoring bills or avoiding opening mail from creditors
- Regularly exceeding your budget or spending more than you earn
Building an emergency fund is essential for financial security. Start by setting a goal for your emergency fund, such as three to six months' worth of living expenses. Cut unnecessary expenses and redirect the savings into your emergency fund. Consider automating contributions to your emergency fund to make saving easier and more consistent.
Read more tips on creating an emergency fund here.
After someone passes away, their debts are handled by the estate’s executor. The executor must inform creditors, settle outstanding debts from estate assets, and distribute any remaining assets to the beneficiaries. Jointly held debts may fall solely on the surviving debtor.
While executors may sell assets to settle debts, certain assets like life insurance policies and RRSPs with named beneficiaries are exempt. Planning ahead and seeking guidance from a Licensed Insolvency Trustee can ensure your assets benefit your loved ones instead of being used to pay off debt.
Have more questions?
Visit our FAQ page to access many other answers to your most pressing questions.
Related blogs
Are You Financially Prepared For the Uncertain Future? (3 Minute Debt Break)
It’s always been difficult to plan for future financial challenges. But these days, the unforeseen seems to be a regular occurrence. No one has a crystal ball for global events let alone circumstances that are unpredictable in your personal world. Like… what if your car breaks down and needs major repairs? What if you’ve been laid off or lost your job? What if you’ve become ill and are now unable to work? What it you’ve recently separated or divorced?
How do I know if I have too much debt? Six signs that don’t lie
This question comes up a lot, but it’s a difficult one to answer. While everyone loves a good benchmark, there’s never a clear-cut answer for how much debt is too much for any individual.
Moving away from home? Prepare for unexpected expenses
Moving away from home is an exciting, albeit bittersweet experience. You’ve got a world of freedom and opportunity ahead of you. But the brand-new costs and responsibilities can also feel quite daunting.
