Home improvement projects, even if they are DIY, do cost money. To finance your next home improvement project, here are different financial choices that will help you in the long run.
Use cash if you can – If you have cash saved up it is best to use it, as this will prevent you from accumulating more debt. However, for larger remodeling projects, like a kitchen remodel, which can cost over $50,000, it is best to look at financing options for part of the cost.
Use 0% or low-interest credit cards for small projects – You may see 0% interest on credit cards, these are a good choice as it will give you at least 12-18 months to pay off your debt. It is a good idea to clearly read the fees and terms of the contract before accepting the offer. It best to set an automatic payment to pay directly to avoid being charged for delayed payments.
Consider personal or unsecured loans for medium-sized projects – Personal or unsecured loans will provide you cash for projects between $15,000-$50,000. They are a sensible choice as they do not require any collateral and therefore will not place any of your assets in jeopardy if you default. However, interest rates are higher for such loans. For example, a $50,000 unsecured personal loan will see you paying 7.2% – 9.2% interest depending on the term of your loan (36 months to 60 months).