How to Finance an Unexpected Home AC Repair
Summer is in full swing, and as unfortunate as it may be, the potential for air conditioners to breakdown increases exponentially in the warmer weather. In addition, given the economy is in the tank, when financial burdens such as having to pay for the repairs of a broken down AC unit come up, many Americans find themselves without any money to cover the costs. As it always seems, these types of expenses come up at the most inopportune times.
Fortunately being broke does not mean one has to suffer in a sweltering home without AC! Here are three quick and easy options for coming up with the cash to get the AC back on track without breaking the bank.
1) Credit Cards/Cash Advances
With the available credit, these financial tools have become many American’s financial safety nets throughout this down economy. They are quick, easy, and in most cases accepted just about anywhere. In addition, most cards even have rewards so by using up that balance on an air conditioning repair bill, at least the card owner will feel like they are getting a little something back in addition to getting their AC back on line.
The upside is the credit card is readily accepted and can be utilized at a moment’s. The downside to using a credit card or cash advances is you usually end up with higher interest rates, annual fees, and in the card owner is unable to pay the balance off in a short amount of time, the amount repaid may be more than double the original cost of the repair.
If you decide to go this route, be sure to remember to pay the charged or loaned amount back quickly to avoid fees and interest that can add up quickly.
2) Home Equity Loan
In recent years, obtaining a loan based on the equity of one’s property was a super easy process and one that was also readily available. All one had to do was go into a bank or online, apply and within days, have a check in their hand to cover the cost of the bill. Even though this process took a few days, the interest rates were low as well as tax deductible.
Since the economic crash of 2008 however, banks and mortgages companies are no longer willing to set up these loans nearly as easily, and for the ones who are, the rates are nowhere nearly as friendly as they once were. In addition, because of all of the government oversight, the process now takes much longer and as if that weren’t enough deterrents, with plummeting home values, not many people have the equity in their homes to make this option viable to them.
3) Payday Loan
Perhaps the most intriguing option is that of the payday loans. These loans are designed to be short-term relief loans for those who are making ends meet for the most part, but simply have something unexpected come up like an AC repair bill and need to get cash in a short period of time to cover it. These loans are also easy to apply for as well as qualify for. Anyone who has a valid checking account with at minimum, $1500 directly deposited monthly and one bank statement can apply for a payday loan. Once approved, these loans can generally be deposited electronically for use within 24 hours.
The beauty of these loans is that they are easily accessible, and offer lower interest rates for short-term needs. Because they are also loaned and repaid electronically, there is no need for people taking these loans to make multiple trips to an office to drop off paperwork and pick up their cash.
Whereas nobody wants to have an unexpected bill come up, it is good to know there are options available when their cash flow is momentarily dry. Each of the three options have their benefit, so it is up to those needing access to the funds to determine which one is right for them.
Do you have any other options that you’ve resulted to in the past? If so, share them in the comments below.
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