After the pandemic hit, the home improvement market took off in a big way. People were stuck at home, and they all came to the same conclusion. We don’t like our home. So, they all started rushing off to the home improvement stores.
For some, improving their home meant purchasing a new home entertainment system or perhaps applying a simple coat of paint. Most people however have turned to improving their outdoor space. They found that things like hot tubs, grills, gazebos and new patio sets did wonders for improving the enjoyment of their home. These things do not however come cheap, so how have people been paying for this stuff?
Ideally, you would want to have cash on hand for these types of purchases, any financial advisor would tell you that. But come on, we are Americans. Being broke never stopped us from spending and having a good time. Look at some ways that people have been paying for their outdoor improvements.
If you have equity in your home, a HELOC or Home Equity Line of Credit is a great way to go. It will give you the most flexibility and the lowest interest rates.
HELOC’s work just like a credit card, but with much lower interest. The bank will give you a line of credit which you can do with as you please. Unlike a loan, once you pay back the money, you still have the line of credit. You can then use it again and again, just like with a credit card.
For those of you who go this direction, be careful. With the way home values have increased, you will probably get a sizable line of credit. Try not to overspend. If your original intentions were to buy a new grill, don’t put in an outdoor kitchen.
Online Personal Loans
If you do not have equity in your home, a personal loan is another direction that you can take.
Online loan websites like financeyourgear.com and others like it work with a variety of lenders who can get you the money you need. They cater to all credit types, so even if your report is not all positive, it might be an option.
Personal loans of this type will generally be unsecured loans. Once approved, your lender will transfer money to your bank account and then you can start shopping. This means that you can buy your home goods wherever you like and score the best deal.
Personal loans are an easy option but keep in mind that interest and/or fees can prove costly. Make sure that the benefit of the loan is worth what you will have to repay.
If you have bad credit, charging your backyard makeover to plastic is not advisable. With interest rates over 20 percent, it would just be too costly.
For those of you with excellent credit though, this option should be on your radar. If the scope of your project is small, just a few thousand dollars, you should be able to secure a credit card with a great introductory rate. This rate will typically be zero percent for up to 12 months. Get one of these cards and you can then finance your purchases interest free, and nothing beats interest free.
The caveat with credit cards is that you need to make sure that you pay off that balance before interest starts to accrue. Pay off your balance before the promo period is up or secure a new card and make a balance transfer.
Should all else fail, you might just have to give up on financing and turn to the used market.
The best source for used goods is Facebook Marketplace, mainly because of their instant messaging system. It eliminates the drudgery of working with email, allowing buyers and sellers to communicate quickly.
The great thing about buying used is being able to pick up items for pennies on the dollar. And, since the Facebook community is so large, there are a lot of items available. If it is available new, it is probably available used on Facebook, if you are willing to drive to get it.
If you go this route, make sure that you have cash in hand. People are usually unwilling to hold items, so you need to be able to act quickly.