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5 Reasons You Should Pay Off Your Debt before Starting Home Renovations

Have you been getting the home renovation itch? With so many home reno TV shows and before and after pics online, it can be tempting to hop on the bandwagon. Especially if your home is older, you may want to give it a serious makeover in order to bring it into this century – but also to make it a more comfortable (and often healthier) place to live.

But before you tackle such a huge financial undertaking, first take a moment to consider whether or not it’s a smart idea to start one. Do you have any existing debt that you should be paying off instead? If so, it’s highly recommended that you pay off your debt first before starting any home renovations.

Doesn’t seem possible? Well it is: with the right debt consolidation services you can achieve a debt free life before you know it. All it takes is some patience, smart budgeting, and financial management tools that a certified Credit Counsellor can easily provide you with.

Still not convinced? Here are five reasons why you should pay off your debt first before committing to a home reno.

1. Adding More to Your Debt

Taking out loans or using credit to pay for a home renovation isn’t a smart idea to begin with. You’ll just be adding more debt (plus interest) to any existing ones that you currently have, meaning that you’ll have to make more monthly payments. The more you need to pay every month, the longer it will take to pay your debt off.

2. Better to Save Up

The best way to pay for home renos is to save money in advance. This may mean holding off on renovations for a while, but it’s the best method to ensure that you don’t get stuck with additional ongoing payments, high interest rates, lending fees, or surprise charges. Choosing to pay with cash or liquid assets also means you don’t have to wait for approval to get money from a lender, so you can start your renos as soon as you have the money to do so.

3. Avoid Unnecessary Stress

Being in debt is stressful! Why put yourself through that when there’s a smarter way to go about things? While you will have to hold off on buying that home reno you really want, it’ll be much better for your mental health.

4. Smart Budgeting

Getting your finances in order before starting a reno is important so that you can budget for, and save money towards, emergencies, retirement, and other financial goals.

5. Only for Emergencies

When considering doing home renos, only consider taking out a loan if it is an emergency, or if it will improve your home for resale. Ditch the aesthetic changes and stick to important upgrades like a new furnace, replacing your eaves troughs, or for emergency repairs, like a leaky roof. These will actually add more value to your home because, despite common belief, people value the practical upgrades over aesthetics.

Want to do a reno but realize it’s not in your budget? Tackle your debt first with the help of a certified Credit Counsellor from a not-for-profit credit counselling agency and begin your path towards financial wellness. 

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