It happens to the best. You are on a roll. You made your budget and are sticking to it. You are paying off your debts and soon will be able to put some money aside for an emergency fund. Then all of a sudden, it happens! Your car breaks down. How will you pay for the repairs? Let’s take a look at a few options.
Borrow From A Friend Or Family
If you have a friend or family member who is willing to lend you the money at a low-interest rate, that is a great option. Put everything in writing and agree on a payment schedule that will be convenient for both of you. Stick to the plan, and if ever something happens that prevents you from doing just that, talk to your friend or family member. Let them know about your situation and do everything in your power to mend it quickly.
Ask About Payment Plans
Ask your auto mechanic if he offers payment plans. Before agreeing to one, check the interest rate and if you can afford the monthly payments.
Apply For An Online Personal Loan
If you have bad credit and are just getting back on track, some options might not be available to you. That is where online personal loans come in. They do have high interest rates, but they do not check your credit score. They will only verify that you have a steady job and can afford to make the payments. The amounts you can borrow are smaller, from $500 to $750, and you repay the loan within three to four months.
Use A Credit Card
When going with this option, use a low-interest credit card if possible. Do not take out a cash advance on your credit card, as the interest rate will be higher and will be calculated from the day you took the money out. With a regular transaction, there is a lapse of time, usually twenty-one days, before the interest fees kick in.
If you have a specific profession or particular skills that might be useful to the shop owner, try to barter. Who knows? Maybe he needs a plumber, or someone to paint his house. You might be able to bring down the bill and end up paying for the parts only. Bartering will best work with small family-owned auto repair shops. If you have been doing business there for a while, it is even better.
Apply For A Personal Loan At Your Bank
A personal loan with your financial institution might be an option if the repairs are quite expensive. The minimal amount to borrow is about $3000. Before going for this option, make sure the repairs are not worth more than your car.
The solution to your problem is out there. You have to weight your options and choose the best one for you.