A home is one of the biggest investments you can make.

It’s a commitment you make to care for, invest in, and build up over time. As such, it is important to keep up with the financial obligation. Repairs are anticipated and made over time, but not everything can be so simple.

Potential water damage caused by a rainstorm. HVAC system breaking down during critical summer months. Electrical problems that require immediate attention.

These events certainly are not expected, and they never come at a convenient time.

What to do when dollars may be tight around holidays, or after paying for expenses you may have planned for? Not correcting critical issues can cause much greater damage over time. They simply must be done. Fortunately, there are ways to take control.

Emergency Fund

It is good practice to keep an emergency fund stored away in case of, as you would guess, emergencies.

Saving a little money over a long period of time can go a long way towards relieving stress when you need the money fast. A good rule of thumb is to keep 6 months worth of your monthly salary. You can also produce a separate fund strictly for home repair and not other life expenses.

Paying cash is the cheapest way to have repairs done. While it may sting a little to erode that fund you worked hard to build, remember that is what it’s there for. The relief from stress, coupled with the prevention of future issues pays for itself.

Use of credit

Another option to make your repairs on a tight budget are among the many credit options available. A good financial strategy includes the use of credit, this will come in handy here.

While you cannot pay for labor with credit, it does open up a range of options that can help you if you’re tight on cash. Materials can be bought through major home improvement retailers, often with some great financing options.

From there, either a licensed contractor or some sweat equity can be used to complete the job. You can then focus on paying down the credit over a span of months, not days.

Loan options

Various loan options exist that can be very helpful to acquire the cash needed for a home repair. Remember that it can often be more costly to ignore these repairs, so a loan can end up beneficial.

You can also look at mortgage refinancing rates to see if a refi would be a good option.

There is a myriad of options that exist in personal lending, there are a few that you can use.

  • Home Equity Loan

Home Equity Loans exist to borrow against the equity you have built up in your home. The terms can be anywhere from five to 20 years, and you have access to 80 percent of your existing equity.

  • Car Title Loan

Another great short term option to generate cash, car title loans. This variety of loan uses the equity in your vehicle to borrow against.

Understanding the general guidelines is important, they are fairly straightforward. The value of your vehicle will determine the value of the collateral (as is standard in lending), and the vehicle cannot be a salvage title. It’s that simple.

  • Payday loans

These types of loan process, involves a lender providing a short-term unsecured loan to be repaid at the borrower’s next payday. Verification of employment or income may or may not be involved.

No matter what the emergency, don’t get overwhelmed by sudden repairs. Step back, assess, and remember the options available to homeowners. You’ll be glad you did.


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