NEW YORK, October 28, 2022 (Newswire.com) - iQuanti: When disaster strikes, the last thing you want is to be unprepared, but it is becoming a reality for more and more Americans. With rising costs for materials and labor, you may be shocked to find you can't afford your next car repair bill.
In those situations, it's important to have backup options for funds so that the necessary expenses are covered. Next time you're in a pinch, consider these choices for upcoming or surprise car repair and maintenance.
Get a personal line of credit
In a pinch, a line of credit can be extremely helpful. Extremely similar to credit cards, a person is able to access up to a pre-determined amount of funds within a credit limit. You'll only want to take what you need as, just like a credit card, you'll owe interest on the amount you've borrowed. While there is flexibility to pay back the funds, it's important to be wary of how interest can accrue the longer the balance is outstanding.
Borrow from family and friends
One of the easiest and least complicated methods to obtain money in a pinch is to ask for help from loved ones. Sure, not everyone has the luxury of accessing money from family and friends or necessarily wants to, but if you can, it may provide a more flexible method of repayment.
Plus, you can skip the fees and only borrow and repay the amount that you've borrowed. But if money is a sensitive subject in your family or social circle, it may be smart to avoid this method unless absolutely necessary when no alternatives are available.
Get an installment loan
Installment loans come in handy when you need a manageable repayment schedule with stable interest. With these loans, you can receive a lump sum of money all at once. Then, you'll pay it back over time in fixed monthly payments, or installments. Repayment terms can last from a few months to several years. The benefit of these is that you'll have all the information you need to properly repay the loan from the beginning.
Use a credit card
Credit cards are a huge tool for unexpected expenses, so long as you have one in place prior to the expense. Something important to note with a credit card is that there is usually a credit limit that maxes out the amount you can spend.
For new credit borrowers, that amount could be minuscule, such as $1,000 or less, especially in the case of secured cards. On the other hand, seasoned borrowers or those with favorable borrowing characteristics may be able to access tens of thousands in credit. For high expenses like home repair or unexpected medical bills, this can help keep you afloat.
The bottom line
Car repairs, like any emergency expense, can provide unnecessary financial stress on top of the burden this life event causes. In order to be prepared, you'll want to make sure you have access to cash or have the means to get more funds, whether it be a loan or other option.
Source: iQuanti, Inc.