How Can Debt Consolidation Help Your Renovation Plans?Jul 21, 2017
Planning a home renovation project this summer? You aren’t the only one. In fact, a recent BDO poll shows that over half of all Canadian homeowners are planning some type of renovation in the next year. And 43 per cent of those homeowners say they will likely fund at least 60 per cent of their renovation using debt. If you have a similar plan to fund your next reno project with debt, it’s a good idea to stop and take stock of your existing debt to determine whether your debt load can handle the additional cost of a home renovation, and whether debt consolidation could help you repay that debt faster.
Start with a debt calculator
An online debt repayment calculator is a nifty tool. Plug in your numbers and you’ll have a better understanding of your debt — including how long it will take to repay it and how much interest you’ll end up paying.
Surprised by the total amount after running your numbers? It doesn’t mean you need to give up on your kitchen makeover dreams. It does, however, mean that you should focus on reducing your debt first, before you renovate.
How do you focus on debt repayment? Here are two strategies:
- Find a budget tool that works for you — a budget worksheet or an online budget calculator are two options. Stick to your budget, cut back where you can, and put more money towards paying off debt.
- Debt consolidation or credit consolidation can also help you pay down your debt more quickly, so you can move forward with your renovation plans. Speak to your local bank or a trusted lender to learn more.
For information about debt consolidation services to avoid, listen to this podcast from “Moolala: Money Made Simple with Bruce Sellery”.
Do you have plan to renovate this summer? Do you worry that your debt may get in the way? Join the conversation on Twitter. #DebtSolutions #HomeReno