Surprise home repairs? Here are the best ways to pay them

Unexpected home repairs can happen to any homeowner and sometimes they can cost a substantial amount of money. If this happens, you will need to decide how best to pay them.

The good news is that you have several options for financing the repairs that your home needs. The right approach will depend on your specific situation as well as how long it may take you to cover the costs of the fixes.

Here are three of the best options for paying to repair your property.

1. Emergency savings

If you have an emergency fund, using it to cover the cost of repairing your home could help you get the repairs done as quickly as possible. You won’t have to wait for loan approval or take the time to research financing options. And you also won’t have to worry about having to pay bills for long-term repairs, which will affect your continued financial flexibility.

Of course, there are downsides to using emergency savings to fund your repairs. If you empty your emergency account, you won’t have any money if another unforeseen expense arises shortly after the repairs. If you lose your job, for example, it might be difficult to pay the mortgage if you run out of emergency funds, especially since you can’t easily borrow for mortgage bills.

You will also need to work on replenishing your emergency fund as soon as possible, which will also affect your future financial goals. Yet for most people, the ability to save on interest and avoid committing to ongoing monthly payments makes emergency savings the best option, provided you have enough funds to cover. repair costs.

2. A 0% APR card

Another good alternative for paying for emergency home repairs is a credit card with a promotional 0% APR, but only in limited situations.

A 0% APR card is a card that offers a 0% promotional rate for a limited period of time (typically around 12 to 15 months). If you make purchases within this time frame, you will not have to pay interest, provided you pay off the balance before the promotional rate expires.

This can be a good option since you won’t have additional finance costs. But the downside is that you’ll need to make sure you can pay off the entire balance before the 0% rate expires to avoid getting stuck paying very high interest for your repair costs. You could also temporarily damage your credit score if you max out use of a card to fund repairs (or charge more than 30% of the available balance), as the credit usage rate is a big factor in your credit score. .

Not all repair professionals accept credit cards, however – and you may not have enough available credit or enough money to fully pay off the debt before the high rate kicks in. . If so, this approach wouldn’t work for you.

3. A personal loan

Finally, a personal loan could be another good way to finance surprise home repairs. If you go for a fixed rate loan, there will be no surprises in terms of monthly payments or interest rates, and the rate must be lower than the standard rate on a credit card.

However, personal loans can take a long time to get approved, and you will need to incur future income to pay principal and interest. But if it takes a while to pay off the repairs and you want to keep interest low, a personal loan might be the best approach.

The important thing is to carefully consider each of these options and make an informed choice about the most appropriate financing method for your situation when surprise repairs arise.


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