Your home is one of the most valuable assets you have, which is why so many of us consider it imperative to take care of it. However, when being bogged down with a lot of debt, it can not only be hard to make the necessary improvements but additionally even afford the credit to loan what you need out. Yet, it doesn’t have to be.
Believe it or not, utilizing your home as a means to improve your credit is actually much easier than you might imagine. In fact, with a little bit of research and hard work, this strategy can help you get back on top. Here’s how:
A commonly overlooked practice, utilizing a can be an excellent first option to improve your financial standings. This can include knocking out old debts by negotiating with debtors, as well as ways to restructure your current debt obligations. Remember, agencies like this are here to help you get back into good standing with credit bureaus, so it doesn’t hurt to reach out and see what they could possibly do.
A good suggestion to improving your financial standing for home renovations is to readjust your insurance policies. From to health insurance and any other in between, it might be advantageous to restructure these policies to save money. Honestly, with how complex insurance can be, you’d be surprised as to what type of savings you could have simply by contacting a broker. Shop around and see what options might work for you, as this is an excellent strategy to cut down on cost.
Perhaps one of the biggest ways that people waste money on renovations is by going for whatever contractor has the lowest rate. However, this can end up costing you more than you initially intended, as a lot of contractors will take their time with something or overcharge on certain items and services. Instead, only hire contractors that are verified and have great feedback from previous customers. Even for a specialty like a should be thrown into the mix, as their work will provide the overall best value to your home.
One popular option amongst those who are looking to rework their finances is debt consolidation, which allows you to lump a lot of your current bills into one loan, usually to lower the interest rate. According to NerdWallet, the average American cumulatively has , which is a pretty staggering figure when you factor in the different sources this debt comes from. However, if you find yourself in the same boat, then it might not be a bad idea to consolidate them into one low-interest rate.
While we all love to envision what our homes could look like, it’s a smart strategy to try dividing and conquering things in sections. As noted by Home Advisor, the average renovation in total, which can be a steep price tag to knock out all at once. Instead, try going through and making a list of the “must do’s” first, followed by what can be put on hold. This is a marathon, not a sprint, and once everything is said and done, you’ll feel much more accomplished for being patient.
One of the most significant ways to save on your home improvements is by taking care of a lot of tasks on your own. For example, demolishing a wall is something that you could most likely take care of with a sledgehammer, whereas a contractor would charge a significant amount. I’ll note though that it’s probably best to leave specific things up to your contractors, such as electrical wiring or HVAC work. However, anything else can most likely be found on YouTube or home helper sites, which will help you tremendously.
Finally, even though the idea might scare you, refinancing your home can be a wonderful way to help afford new improvement costs. As noted by Freddie Mac’s quarterly report, the median age of a loan before refinancing was , which goes to show how frequently this is done. Consider this option if you’re able to increase the value of your home with the money returned, especially if you can maximize your efforts.
With so many options to help you increase the value of your home, which method would you consider using? Comment with your answers below!