How to Deal with Unexpected Financial Emergencies

We all know that uncertainty is part of life, but that doesn’t make it any easier when you’re hit with an unexpected financial emergency.

3 min read

Uncertainty might be a part of life, but that doesn’t make it any easier when you’re hit with an unexpected financial emergency. Your car breaks down. Your dog winds up in the hospital. You lose your job due to unforeseen circumstances. Facing a money crisis is scary, but there are steps that you can take to tackle challenging times.

We’ve made it our mission to support you on your financial journey with the knowledge and skills that you need to reach your goals, and that includes overcoming setbacks. Whatever you are facing right now, know that N26 is here to help you recover your financial footing.

What to do right now

A financial emergency can be a shock to the system: not just to your wallet but also to your mental health. Allow yourself enough time to acknowledge your feelings: it’s completely normal to feel upset, or sad, or afraid. When you’re ready, you can get ready for action. Being proactive will give you back a sense of control over your situation.

  • Use your emergency fund thoughtfully. Before you tap into any emergency savings, assess how much money you have and how long it will last in your current situation. Consider all your options carefully before spending your emergency fund, and use it only if you really have to. 

  • Cut back on unnecessary expenses. Take a look at your spending to see if there are places you can cut back. Learn about the small changes that you can make to scale down your expenses and save money on your grocery budget, electricity, and water bill. With N26, automated spending statistics make it easy for you to see a breakdown of your expenses at a glance. 

  • Inform lenders about potential delayed payments for your credit card bill, car loan, or mortgage. Many will be willing to work with you to figure out a solution, and you’ll have the best results when you contact them before you make a late payment.

What to do later

After you’ve handled any immediate concerns and commitments, you’re ready to start thinking about what happens next, and how to be better prepared. 

  • Apply for a loan. If you need money right away, a personal loan might be a good idea for your situation. Be sure to do your research, and watch out for high-interest or predatory rates.

  • Start a new emergency fund and build up your safety net little by little. Now that you have direct experience dealing with a personal financial crisis, you’ll have renewed motivation to set up an emergency fund for potential problems in the future.

  • Consider adequate insurance coverage. Insurance is designed to help you deal with emergency expenses. Different types of insurance cover different problems, from health issues, to accidents, to the loss of property, disability, and even death. The cost of insurance might well be worth the peace of mind.


You’ve got this.

With N26 by your side, you’ll have the necessary tools and know-how to overcome unexpected emergencies. Easily set money aside for financial emergencies with Spaces, or understand where your money is going with automated spending statistics. Take charge of your future and sign up with N26 today.

The N26 account is offered by Axos Bank®, Member FDIC. N26 Inc. is a service provider of Axos Bank. All deposit accounts of the same ownership and/or vesting held at Axos Bank are combined and insured under the same FDIC Certificate 35546. All deposit accounts through Axos Bank brands are not separately insured by the FDIC from other deposit accounts held with the same ownership and/or vesting at Axos Bank. The N26 Visa® Debit Card is issued by Axos Bank pursuant to a license by Visa U.S.A. Inc. The N26 Visa Debit Card may be used everywhere Visa debit cards are accepted.

By N26

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