Killer Expenses

Expenses that suddenly appear that result in a serious financial problem are sometimes called killers. They are killer because they seem to eliminate any way out for the person in debt.

We are all debtors. Each month we use a form of credit, for utilities like hydro, gas and telephone. These are services that we usually use before we pay for them.

Sometimes there is not much we can do to avoid a situation where unexpected expenses can cause a crisis. Perhaps we have been receiving a very limited income, had marital problems or poor health. For one reason or another we have been unable to develop a plan, or have enough income to set aside for unexpected expenses.

To help avoid financial crisis where there seems no way out, it is important to develop a budget or financial plan. You can get information about budgets from a variety of sources. Banks and other financial institutions usually have booklets on budgeting on display, or for the asking. You can buy a variety of books on the subject or go to your local library.

The critical part of any money spending plan is setting aside a portion of income for occasional expenses that may or may not come up throughout the year. We often do not plan to set aside anything for expenses such as: appliance repair or replacement, automobile repairs, christmas gifts, household maintenance, property insurance, vacation, automobile replacement, dental appointments, property taxes etc. Some of these expenses can be "killers" when they corne up at an unexpected time.

If you are in a crisis because of killer expenses and don't seem to be able to find a way out of your problems call your local Credit Counselling Service. Counsellors will help you to analyze your situation so that you can find out the best solution to your problems.