How To Renovate Your Home Without Going Further Into Debt
If you're a homeowner and interested in renovating your home, expect to spend a fair amount to give your abode a fresh look. While some renovations may cost only a few dollars, 22% of homeowners will spend between $5,000 to $15,000 on various projects. This may be a concern for you if you already have debt. But there is good news: if you'd like to make improvements without spending too much money, there are a few steps you can take. Here's how to renovate your home without going further into debt.
Pay Off Old Debt
If you have any unsecured debt, then it's not a bad idea to take care of it before you start to take out additional loans. It may be more difficult to get a loan if you already have debt that you haven't paid. Having some debt isn't a bad thing, but consider taking a few months to pay for your current loans. Consider meeting with a credit counselor or loan officer at your bank if you're not sure of your options. Some creditors may be writing off bad debt. Regardless of whether or not you need to take out a loan, paying off old loans is always beneficial.
Consider DIY Options
Evaluate your home and decide which renovations are strictly needed and which ones to leave for next year. For instance, you may need to upgrade your heating system, but new flooring can be optional. Make a list of the renovations you'd like to make and a separate list of the ones that you absolutely need to make. Focus on the necessary ones first to prioritize your finances.
One you've finalized the list, look at the necessary repairs and think about what projects you might be able to do on your own. Most people can't take on electrical or plumbing work on their own, but many simple home repairs or renovations can be done on your own with a little research. For example, refinishing your floors can be done on your own, and it usually takes just a weekend's worth of work. Consider what you can take on or ask friends and family for help if needed. If you can do the work yourself, you may not need to be able to take on any debt at all.
Consider Alternate Funding
Depending on the area where you live, the age of your home, and other factors, you may qualify for grants or local funding for home improvement and maintenance. This is especially more likely if you live in an older home that has historical significance. Talk to your local housing authority to determine what types of programs are available. Even if the home isn't significant, your income or financial situation may qualify you for grants which do not have to be repaid. Consider these options as they will provide funding for renovations without adding to your financial burdens.
Finally, make sure that you keep a close eye on your finances throughout any renovation or debt-paying process. Most people have some debt in their lives, but being financially sound with your money can provide financial freedom for your future. Use these tips to determine if you can renovate the home and, if so, how to go about this in a smart way.
