Home improvements are something that many homeowners across the country tackle on a regular basis. From minor little renovations to massive overhauls of their home, the home improvements industry is thriving, to say the least. According to statistics, homeowners spent £3,048 on what they call “sprucing up” their house in the past year – which included renovations, flowers, and furnishings. That’s no small chunk of cash.
So what happens if you’ve got home improvements on your mind but you don’t exactly have that kind of money lying around? Does that mean you have to cross improvements off your “to-do” list? Not necessarily, as it may just be time to get a little creative. Here are some alternative funding sources that you could use to come up with the cash needed for your home improvements.
Home Equity Line of Credit
As long as you own your home, you’ve likely got home equity. Home equity is the difference between how much you owe on the house, versus what it would be worth if you were to sell it right now. In order to qualify for one of these types of loans/lines of credits, you typically need to have 20% worth of equity in the home.
Increase Your Credit Card Limit
If you have a credit card, this can be another way to fund your home improvement. You may be able to speak to your credit card company and qualify for an increased spending limit. If that’s the case, you can use it to pay for purchases. Now keep in mind the interest rate is extremely high on credit cards, so this solution is only ideal if you’re able to pay it back fast.
What About a Personal Loan?
Maybe the credit card won’t give you enough cash, and you don’t qualify or just aren’t interested in a home equity line of credit. Another option is a personal loan. This will mean you have set payments each month, and this also means there will be an end date in which it is paid off.
Logbook Loans
Logbooks loans let you borrow against the value of your car, using the vehicle as collateral. As long as the car is registered in your name on the logbook, and it’s worth something, there are lenders who will lend you money.
A great example is CarCashPoint, https://www.carcashpoint.co.uk, which is one of the top Logbook Lenders that offer low-interest loans. By getting a lower interest rate, you’ll be paying less over the term of the loan, which means you can afford to borrow more to spend on your house.
Downsize Expenses to Free Up Cash
Another tip is to look at the various expenses in your life and find ways to downsize those payments and costs. It’s not difficult to find areas to save money, such as utility bills and entertainment expenses.
Making Those Renovations Possible
Just because you don’t have the cash saved up to pay for your home renovations doesn’t mean they can’t happen. It’s all about finding the ideal funding source for your needs.
