People who have limited financial resources may have no other way to pay for their repair expenses other than to agree to a mechanics’ lien. This arrangement allows people to secure the repair services they need; however, it puts them in the position of paying off the loan in good time or face losing their property.
When someone wants to avoid a mechanics’ lien, they may wonder what financial options are open to them. Considering these suggestions could help them avoid a lien if or when they need to seek out repair services.
Save Money from Earnings
Many people take for granted the importance of saving money from their earnings. However, many difficult financial circumstances could be avoided if a small amount of money is saved from each paycheck.
Most financial experts agree that individuals saving at least 10 percent of their earnings and putting that money into a separate account could help accumulate cash they need to pay for unexpected events. Having money in a savings account could help get around a mechanic’s lien.
Invest in a Warranty
Difficult financial circumstances tied to repair services can also be avoided with extended warranties. This will often cover the costs related to unexpected and costly repairs.
Many repairmen are able to bill the warranty companies directly and spare customers the dilemma of coming up with the right amount of cash for these services. Sometimes, however, warranties require that customers pay first and then seek reimbursement from the warranty company.
Before they invest in a warranty, details should be check out thoroughly. Even so, extended warranties can also help get around a mechanics’ lien.
Keep Credit Cards Open
Having credit cards comes in handy for unexpected repair expenses. Rather than maxing out their credit cards on frivolous purchases, cardholders may be well advised to keep their credit cards available for covering repair costs. Many repair services accept credit cards for these expenses.
People can pay for their repairs using their cards and save themselves from having to agree to a mechanics’ lien or figuring out another type of financial arrangement.
Cash in Bonds, CDs, or IRAs
People who invest in CDs, bonds, and IRAs could use these investments as a way to pay off unexpected repair costs. While they may incur penalties for cashing out their accounts, account holders could have access to the money they need quickly.
Many banks and credit unions allow customers to cash out investments if they are experiencing such financial emergencies. People could also borrow against their investments if they do not wish to cash them out prematurely.
Take Out a Bank Loan
If they have solid enough credit, individuals could take out a bank loan to cover the costs of their repairs. When they take out a bank loan, customers with good credit often do not have to put up any type of collateral. Their credit rating allows the bank or credit union to trust them to pay back the loan amount.
This financial arrangement also provides people with the peace of mind in knowing that they will not lose their vehicles or other property if they default on that loan. Taking out a bank loan and using that money to pay off repair expenses could aid in preventing a mechanics’ lien.
When people face unexpected repair expenses, they may wonder what they can do to avoid a mechanics’ lien. They might consider various financial remedies to help them pay these costs and avoid losing their property in such a case.
Jamica Bell is a freelance writer and subcontractor who is knowledgeable of mechanics’ liens in the construction industry. During her research, she found the website http://www.cmr-llp.com to be a helpful resource for individuals either seeking greater understanding or being involved with the complicated matter of mechanics’ liens.