Home Warranty vs. Maintenance Savings Plan
Handling Unexpected Repair Costs as a Homeowner
One common thing about debt is that it tends to pile up, and fast. First it’s one thing and then another. Before long you’ve blown through the budget and you find yourself back where you started, or worse. When you own your home it’s all too easy to find yourself with unexpected repairs and no funds to fix anything.
This is why it’s essential to have a plan in place for dealing with emergency repairs in the home as they arise. But should you invest in a home warranty or put aside savings for maintenance and repairs? Let’s look at which option is best for your family.
The Pros and Cons of Home Warranties
The peace of mind that comes with a home warranty is by far its biggest advantage. Depending on what type of coverage you need for your family, most appliances and systems in the house can be included in your specific plan.
This means when the dishwasher starts spewing soap onto the kitchen floor or the AC goes out on the hottest day of the year, you won’t have to waste time trying to figure out which repair service to use. As long as your home warranty plan is in place and covers the item in question, a simple call to your provider is all it will take to get a qualified professional headed your way. One of the most common complaints about filing a claim with a home warranty provider is that getting your repair scheduled is usually slower than if you were to handle the issue directly. The reason for this is that the home warranty provider works with specific service companies, so you don’t get to pick who services your home.
Another advantage is that you know your costs up front. There aren’t a lot of surprises or unforeseen strains on your budget. Even so, there can be other costs involved so be sure you understand your policy and how it fits your family’s needs.
Most home warranty plans have a deductible, and some include service fees you have to pay at the time of service. If these costs aren’t factored into the budget, you can still find yourself unable to get repairs done when you need them.
What About a Maintenance Savings Plan?
If the cost of a home warranty is outside of the scope of your budget, you will still need to be prepared when something eventually breaks. As a homeowner, having a healthy home is one of your biggest priorities. This means taking care of problems as they arise and ensuring your family’s flow stays constant and positive.
If your family is already struggling with debt and bad credit, what might be a simple fix under other circumstances can strain your budget to the breaking point. Setting aside money and building a fund for home repairs can make all the difference when trying to rebuild finances. You will need to maintain strict discipline over the fund and when it is acceptable to use.
Evaluate each appliance and decide if it really needs repairing, or if it would be cheaper and more cost efficient to buy a new one. If you decide on repairs, look for companies with free service calls and evaluations. Try not to use a company with a poor reputation just because they are cheapest. You will often find yourself paying someone else to clean up the mess in the end.
With due diligence along with some healthy financial decision making, you can be prepared when something goes wrong. CreditGUARD programs can help you deal with debt that interferes with your happy home. Give us a call today at 800-500-6489.
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