Car breakdowns can happen when you least expect, and the worst timings are when you are broke. It is a situation that leaves you stranded as you try figuring out how you will pay for the car repairs when you have no money.
You can get the cash you need to fix your vehicle in different ways, many of which could see you finding the money you need fast. Below are 7 tips on how you can sort your car repair costs when you lack the money.
1. Use A Credit Card
A credit card can be one of the fastest ways to sort your vehicle repairs when your emergency fund is dry or does not have one. However, it would be best if you were prudent with how you use your credit card.
Ensure your budget for your credit card repayments. You must pay off what you are owed as soon as possible, especially when the interest rate is high. Try to find some wiggle room when budgeting by trimming the costs for things like eating out and paying for unused subscriptions.
If you do not have a credit card, you can apply for one. But you should review the interest rates to ensure you pick a card with the best deal. For instance, a credit card with no annual fee is an excellent choice if you are keen on saving money.
2. Apply For A Personal Loan
A personal loan is another viable option that will help you meet your unexpected automobile repairs. You can visit your bank or credit union and see if they can help you since you have an account with them. Alternatively, you can go online and search for a reputable lender. It could be a fast answer to your woes.
The smart thing will be to shop around comparing the offers to find the best interest rates and long terms. Search for any hidden details like extra fees as you try to determine which offer will fit your budget.
In case you have bad credit, it should not be a reason for too much concern. Bonsai Finance is one of the companies that can help you secure a personal loan irrespective of your credit score.
3. Set Up A Payment Plan
At times, your struggles of figuring out how you will pay the costs of fixing your vehicle can be as simple as talking to your automobile technician at the repair shop. Most of them are willing to offer you a payment plan that will not feel burdensome.
Discuss your situation and iron out the details of the plan before agreeing to the payment amount. Get to know about any extra charges, the due dates, and the interest rate. Keep in mind that you should settle for a loan you can afford to repay. Therefore, take the bold step of negotiating the terms until everyone is comfortable with the agreement.
4. Find Title Or Payday Loan
If you are run out of viable options, consider taking a payday loan or title loan. The downside to this option is the loans have high interest rates of nearly 300% - 500% APR. However, they can be a means to an end, helping you settle your money owes. You can get as little as £50 payday loans, direct lenders a great short-term fix for an emergency.
Go for the best deal that has a short-term repayment plan. The sooner you can settle the loan, the more you get to save on the interests if you can afford to make the monthly payments.
Moreover, you can get a payday loan or title loan with interest rates of roughly 36% - 40%, which are a better deal. Nevertheless, remember that these are loans known for becoming a financial nightmare when not thought through thoroughly before agreeing to them.
5. Get A Side Hustle
If landing a fast loan is not happening for you, and your budget cannot accommodate cuts any further, where not get out there and earn the money you need. You can engage in a side hustle and make some extra cash besides your work schedule. It can be anything of interest.
For instance, you can engage in services like house cleaning, yard work, or dog walking. Joining a rideshare service as a driver can also be an excellent option, the same as working for a food delivery service app. Freelance writing or other online content creation jobs can be a side hustle that makes you good money.
6. Find Out If The Repairs Service Is Covered
If you plan accordingly for emergencies, a protection policy or warranty could cover much of your car repair expenses. Why not research this as you struggle to find a payment method for the repairs and have no money.
Review your car insurance policy terms or credit card protection plan to understand the fine details. You might discover that they offer free roadside assistance or towing services that can reduce the bill. And if your vehicle has a warranty, find out what’s covered. You might be glad to learn that the warranty covers all the repairs.
Get in touch with your insurance provider if you were in an accident. They might cover the entire bill after you meet all the deductibles.
7. Ask Family Or Friends For Help
While this might not be a comfortable option, people are quick to ask family and friends for some money when they lack other options. Discuss your situation and ensure you reach terms that you both agree on before taking the money.
You can request to pay some interest on what you are offered and ensure everything is put on paper and signed. And honor your promise of paying them back on time and in full lest you burn that bridge and soil your chances of getting help in the future.