Question

Well so much for putting my tax refund of ? To build up our emergency fund. Now we need a new furnice system with a new air unit included. Estimated cost $5800-$6500 with installation. We tried getting financing and it was a nice go. We have our emergency fund up to $500. I looked at our cards to see we had enough to use on them and we only have half. I know don't use cards and we haven't. But what do you do when something like this happens in the middle of the winter? Update. we can just get the furnice and that is 2600. Not as bad but not great either. We have heat. We split the payment between two cards. This killed me and will kill my tax return.  

Answer 1

Another option is to put $500 of tax return into savings and then see if you can put the rest towards furnace and finance what's left. Sometimes you can get approved for smaller amounts.  

Answer 2

Some companies will do payment plans. Ask if that’s possible.  

Answer 3

Depending on your income there may be community action programs who can help. Here in MN we have something called CEE which offers low interest loans to homeowners with lower credit scores. They also have emergency programs for those who can’t pay. The company you got a bid from should know of some resources and if they don’t, ask around at other companies. Why do you need to do both right now? Couldn’t you start with furnace only since that’s more urgent and do air later?  

Comments

@sunburn we started with our energy company that we have a home warranty with. They sent a company out and and said we needed a new board. Then when they came to install it (would have been no cost to us) they found the crack and said they could no longer repair it. Our warranty only covers parts and services no full replacements.  

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Thank you actually my roommate works for MCOP and we talked about these programs. She thinks we as a household bring in too much to get the help.  

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@fib73 That’s too bad, I guess I would suggest doing the furnace only and then just saving up for the air.  

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We have been really good not using our credit and doing the plan. Just have too much going out at the moment and not enough savings gathered yet.  

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@sunburn yes that's the plan.  

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@sunburn still have to use our cards though and then when our taxes come in we will just have to throw it at the cards.  

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@fib73 I hear you, all my cards are finally paid off but if I had a big homeownership expense I would still have to use cards at this point.  

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@sunburn thank you for the support. I'm glad I found this group.  

Answer 4

If you have no other option than to use a credit card, you need to heat your home. Pay it off with your tax refund and start your EF over again. Life happens.