I can’t afford my auto repair. What do I do?
Just about everyone has been in a position where they have to make a major car repair. Of course, this never seems to come at a good time. Usually, your car breaks down when you have nothing in savings, meaning that you scramble to come up with a way to pay for the repairs.
The most common of dealing with this situation is to put the repair charges on a credit card. This ensures that the mechanic gets paid quickly and easily, but it can cost a lot in interest charges. Credit card debt has some of the highest interest rates on the consumer credit market, making this some of the most expensive debt to take on.
Another option is to apply for credit through the mechanic. While this is common in large shops and chain stores, privately owned mechanics rarely have the option to put your car repair on credit. When this option is offered, however, the interest rates are similar to those on a credit card. In fact, most national chains simply issue a store credit card to customers who request a loan. While you’ll know that your car will get fixed quickly, you will pay a lot in interest.
One of the worst options that you have is to take out a payday loan. These loans come with astronomically high fees, but they are also the option of last resort for many people who are unable to get credit somewhere else.
If you are forced to accept any of these options and you want to get rid of the debt, then you might want to look into a debt consolidation loan to lower the interest rate that you pay and get the payment down to something you can manage. These loans combine all of your existing debts into a single loan with a lower interest rate than what you’re currently paying. Depending on what you want, it’s also possible to stretch out payments over a longer time. Together, these two steps can give you a monthly payment that is less than half of what you’re currently paying.
With a debt consolidation loan, it’s possible to take the debt from getting your car fixed taken care of without paying hundreds of dollars in interest and fees.