Should A Car Title Loan Be Used To Remodel Your Home?

The following article discussses using the equity in your vehicle to finance home renovations.

by Laura J Solomon

Remodeling your home, or a room in it, can be a daunting and costly task. If you are considering taking out a car title loan to help finance your trip down renovation road, consider the following things as you set your budget. Revamping your home is great, but breaking the bank in the process is not!

1. Create a budget/plan for your remodel and stick with it! Making changes half way through the process can be costly and cause you to have to make major changes to work that has already been done.

2. Hire a professional to do the job if you are not experienced. Do-it-yourself remodeling tends to work only if you have experience as a contractor/designer/builder. With training and experience, a professional will see things that you don’t and will help you avoid costly mistakes.

3. Educate yourself about the remodeling process. Magazines, books, video and the Internet are all great resources. Your local home centers (hardware stores) will also offer classes on installation, drywall and flooring installation along with valuable remodeling information. You can price the cost of hiring a contractor and laborers as well as determining what your budget can afford for new appliances, furnishings, and supplies. Is paying back your car title loan part of your budget? Remember, there are fees and interest rates attached to your balance.

4. Buy what you can on your own. Contractors will have a list of distributors that they use and will get a discount for being a contractor but may charge an extra service fee to order things for your remodel. Purchase what you need at your local home center, at auctions, through Craigslist and other classified ads, or factory direct from the dealer.

5. See it before you build it. You may have a vision in your head of what you want the end result to look like, but often times what we see in our mind is not what comes out in reality. Take some time, before you start tearing apart and re-building, to make a model or computer design that depicts what you are going for. Play around with it and make changes so you will have a better idea of what your vision is actually going to look like once it’s finished.

6. Don’t create an unwanted domino effect by not having a plan for the future. You may only be remodeling one room right now but that could affect other rooms in the future. Your current plan should accommodate any follow-up projects you may or may not plan on doing right now. It’ always smart to anticipate any foreseeable refashioning.

7. Pay as you go through the process if you can. Paying out-of-pocket will give you financial peace when all is said and done and you are enjoying your newly renovated digs. The money you save on interest charges and loan fees can be used towards your remodel.

If you do take out a car title loan to finance your project, pay it back quickly! These types of loans are short-term in nature; not meant to be turned into a long-term debt obligation. If your finances don’t afford you the option to pay back any monies that you borrow for the sake of your remodel, maybe you should consider postponing your plans until you are more financially prepared.

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