Unplanned and unexpected home repairs are an unfortunate fact of home ownership.  The problems that necessitate these kinds of emergency or urgent repairs seem to strike at the worst possible times, too.  Your heater might break down and stop working in the middle of the cold winter months.  You might need to fix a suddenly-broken pipe the day before a holiday or family get-together.  Or maybe a bathroom fixture or your refrigerator stop working when money is already stretched too thin, and your days or weeks away from being able to pay to have it fixed.  Whatever the case may be, there’s a special frustration that comes with these kinds of home repairs, which often seem like the very last thing you have the time, energy, or money to deal with when they occur.

Nevertheless, most home repairs need to be addressed in a timely manner.  Some minor issues may keep for awhile, but critical appliances and systems in your home are often critical to everyday life.  Without them, you and your family may not be able to stay in the home for very long.  No shower, no fridge/freezer, no heat – these are all things that need to rapidly be addressed, or alternative lodging arrangements would need to be made.  If you are already struggling financially to pay for repairs, the last thing you can afford is a multi-night hotel stay, too!

There’s no need to despair, though, even if your finances have you stressed and something needs an urgent repair.  There are various options to help when you’re short on cash, each with their own pros and cons.  Some options are obviously better financially, as they cost you less (or nothing at all), but may not be available in many circumstances.  Others might cost a bit more, but are more accessible, and ensure you get your home repairs taken care of promptly, without the added expenses of hotel stays or other temporary and costly workarounds.

Below, we’ll highlight some of the different ways to pay for home repairs when you are short on cash.  We’ll talk about the trade-offs with each of these options.  Additionally, we’ll discuss their typical availability, and what to expect if you choose that option to pay for your home repairs.  Finally, we’ll cover any limitations with these different options, as well as the typical period of repayment, interest rates (if applicable), and so on.

In short, you’ll get a good sense of the best choices and where you can turn when you need home repairs that can’t wait, but don’t have the money to pay for them, either.

Insurance or Home Warranty Coverage

Depending on the type of home repair you need, you may be able to get a reduced rate or have it paid for entirely by your homeowner’s insurance or a home warranty, or possibly both.  Exactly what systems, appliances, and parts of your home are covered by insurance and/or home warranties will vary considerably by region/province, as well as your provider.  It will also vary based on the level of coverage you have chosen.  In many cases, however, insurance and/or home warranty coverage will help you to pay a reduced price on a service call from a technician to fix the problem, and may cover part of the total cost of the repair, or help limit the cost the contractor can charge.  This is often the best place to start, before you ever call a repair person, if you have insurance or a home warranty.  Otherwise, you may lose out on your coverage options if you directly contract with a repair service yourself.

Merchant Payment Plans or Financing

One of your options to handle repair bills may be to take advantage of a payment plan or financing available from the company that is handling the repair or replacement.  Not all companies offer these kinds of services, and they may have certain qualifications (including credit scores and income requirements), so there is no guarantee of eligibility.  If they are offered and you qualify, however, these options can be a good choice.  They defer the total bill due, and instead charge you regular monthly payments of some fraction of the bill.  Like a loan, there’s an interest rate, which is essentially the cost of using this service.  The length and interest or financing rates on payment plans like these will vary by company, customer, and the amount of the bill.  However, they are worth looking into, if for no other reason than they give you options and data to compare against other, more traditional payment options.

Credit Cards

Credit cards are another way to pay for unexpected home repairs.  Like a payment plan, they allow you to put off paying the total cost of the repair.  The difference here is that, as far as the repair person or service is concerned, they get paid.  Credit cards are basically like mini-loans from the bank or card issuer.  The downside, of course, is that credit cards typically have extremely high interest rates on any balance you carry.

The average Canadian credit card rate is 19%, with a good portion being in the mid to high 20s or even low 30s!  A $1,500 repair bill that you put on your credit card, at 25% interest rate, which you don’t pay off for 2 years, is going to end up costing you $377 in interest, for a total of $1,877.  If you’re out of options, running up a credit card balance may seem attractive, but it can cost you a lot over the long term.

Short-Term Loans

One of the best options to get quick cash to pay for emergency home repairs and other unexpected bills are short term loans in Canada.  If you don’t have money to pay for the repairs now, but are paid regularly (weekly, biweekly, or monthly, for example), then you often just need some financial help in the interim, over the short term.

That’s why short-term loans are ideal.  You can borrow up to $1,500 to put towards your home repairs, without adding to your credit card balance or having to qualify for financing with the construction company.

Perhaps most importantly, there are no minimum credit score requirements, so these loans are one of the easiest ways to get the money to repair your home quickly and easily.  They’re available 24/7/365, too, so it doesn’t matter when something breaks down and needs repairs. iCASH is always available to provide you quick loans with instant approval.

Author bio:

This article was written by the icash.ca content team. iCash is a Canadian Fintech startup who provide short term loans when people need them most. We’re on a mission to educate the world about finance. Check out our free resources and learn  how we can help here: https://icash.ca.

Sean Cooper is the bestselling author of the book, Burn Your Mortgage: The Simple, Powerful Path to Financial Freedom for Canadians, available now on Amazon and at Chapters, Indigo and major bookstores, and as an Audiobook on Amazon, Audible and iTunes.