Caught off Guard? 4 Ways to Fund Unexpected Car Repairs
There are few things worse in life than knowing that your car isn’t running properly. This is partially because it could take hours or days to fix the car repairs.
However, your main concern will likely be the financial consequences of getting the car fixed. Let’s take a look at how to prepare for a repair bill long before you incur it.
Put Money Away Every Paycheck
Ideally, you will put money into an emergency car repairs fund each time that you get paid.
Even if you just put in a few dollars every week or two, it can help to pay for some or all of an unexpected repair bill.
At a minimum, it reduces the amount that you have to put on a credit card or borrow from a friend.
Apply for a Credit Card or Personal Loan
It may be possible to apply for a credit card that comes with no interest on balances for up to 18 months.
You may also qualify for a personal loan or obtain a lawsuit loan if you were in a crash.
It is important to note that paying off a credit card balance by the end of the billing cycle relieves you of paying interest at all.
Therefore, feel free to use any card in your wallet if the balance can be paid with your next paycheck or in a short period of time.
Borrow against Money in a Brokerage Account
Brokerage accounts may allow you to borrow against the value of your portfolio.
For instance, if you have shares of stock worth $10,000, it may be possible to borrow some or all of that money without selling the shares.
You can also consider taking loans from a 401(k) if your plan administrator allows it.
What If the Damage Wasn’t Your Fault?
If your car was damaged in an accident caused by another person, you may not be liable for paying to fix it.
Instead, the at fault party’s insurance company will pay the damage on his or her behalf.
The other driver could be forced to pay repair bills that you incur out of his or her own pocket if that person doesn’t have insurance or have sufficient insurance.
Car repairs can easily cost hundreds or thousands of dollars regardless of what needs to be fixed.
Therefore, it is important that you are prepared to pay those expenses even if you can’t predict when you might need that money.
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Category: Car Repair
