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We’ve all either had first-hand experience of (or heard about) a massive repair bill for broken electronic equipment. So whether you suffer from bad luck or butter fingers, here are three things that can help you cushion or even totally avoid those unexpected bills.
1. Put cash in a kitty
According to the Momentum / Unisa SA Household Financial Wellness Index, only 8% of South African households actually bother to budget. Make sure you join this minority.
Having the cash on hand to pay for a repair in full is the best way to deal with the costs of repairing devices and appliances. But you need to plan carefully to ensure that you are able to build up that kitty of cash.
“I deal with a number of people who experience financial panic when confronted with unexpected costs,” says Registered Financial Planner Marc Joubert. “My advice to them is to draw up a monthly budget in order to start saving because the first step in saving is knowing where your money is going.”
So,
2. Pay a bit extra, get insured
Although it involves an additional cost, consider insuring your appliances. Many retailers offer this option, but be warned! You must review the fine print because there could be significant exclusions and conditions (such as not covering water damage or lightning strikes) and you may need to weigh up whether it’s worth the cost of the insurance premium considering these limitations.
Having said this, an insurance contract that offers good cover could allow you to reap the benefits when you have to have your item repaired. And since some insurance companies allow you to add extra items to your existing policies, this is also worth researching. Being covered means you can afford a mishap, whether small or expensive.
3. Rent-to-own
When buying the latest piece of expensive tech, you’re probably going to have to access credit. But there is in fact an alternative – Rent-To-Own (RTO). A big advantage for restricting future costs is that insuring the product is taken care of by the rental company.
Teljoy offers this form of contract on all its electronics, appliances and other goods. “You don’t need to insure your expensive television or fridge when taking out a RTO contact because we take the risk for that product,” says Rob Katzen, Teljoy’s Group CEO. “So if, for example, there is a theft, or a fire, or even a lightning strike, which isn’t typically covered by normal insurance, we will repair it or replace the product if a repair isn’t possible.”
Planning and researching the options around purchasing an appliance, and making sure you’ve built up a nest egg of savings, are the way to go to avoid being floored by unexpected repair costs for the things you own.
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