Why You Should Consolidate Debt Before RenovatingJul 26, 2017
Would you be making financial sacrifices in order to renovate your home? Many Canadian homeowners planning to renovate this year are doing so at the expense of paying off debt and/or saving for retirement. But renovating doesn’t have to mean taking on new debt or sacrificing your savings. With some creative thinking, like learning how to consolidate debt, you can still focus on saving and debt repayment while giving your home a fresh new look.
Home renovations don’t need to cost thousands of dollars.
Sometimes a coat of paint can breathe new life into your home, and have minimal impact on your wallet. Look for other cost-effective, DIY home renovation projects and build their costs into your monthly budget.
A money management app can help you create a budget, if you don’t already have one. A budget helps you visualize all the expenses you have and see where you might have some flexibility to set money aside for savings goals, like a renovation or remodeling project.
Paying off debt and saving ahead can help you do more in the long run.
Canadian homeowners will spend an average of over $16,000 to complete renovations. But those that don’t rely on credit cards, loans, or other forms of debt will usually spend less, around $13,000. On the other hand, homeowners who take on new debt to cover home renovations are set to spend an average of over $20,000. We can only assume that saving up ahead of time allows you to keep a tighter budget when it comes to renovations and avoid taking on debt in the process.
One way to help you save money for renovations is to consolidate debt with a debt consolidation loan. This debt relief option allows you to combine multiple debts into one monthly payment, usually with a lower interest rate, to help you pay off debt sooner.
Need advice on how to pay off debt faster? These personal finance bloggers offer some useful tips:
- Jordann Brown’s 5 ways to pay off debt
- Rubina Ahmend-Haq’s money saving tips to use right now (savings that can go toward paying off debt)
- Kerry Taylor shares her way to dig yourself out with the debt reduction spreadsheet
This BDO blog post offers more ideas for how to make paying down debt a priority. Learn how to reduce spending and prioritize needs over wants.
What’s your best advice for paying off debt? #DebtSolutions