Some people have been saving hard to finance a DIY project to pay it all upfront. Depending on the amount available to invest and how accessible funds need to be on a short-term basis will depend on the options chosen for saving. Bank and building society savings accounts, an international bank account, or ISAs can all be used to generate interest to help towards the costs. An International Bank Accounts can offer savings advantages and allow the saver to take advantage of beneficial exchange rates to maximize their returns.
Almost everyone will have small, routine DIY jobs to do around the house at some point and there are as many ways to finance DIY as there are shades of paint. These are often paid for in full at the time of purchasing the necessary goods and equipment, but some alternatives can reap some benefits for the purchaser.
Some DIY stores now operate their own store cards, offering customers credit against purchases. These can have advantages, as a customer using their card may attract a discount from the store, or the card may offer a period of interest-free credit for new customers. These cards are notorious, however, for having extremely high-interest rates, so a user must make sure that they will be able to pay up before the interest-free period comes to an end.
Credit cards can also offer new users generous interest-free periods on purchases, which would again allow a customer to spread the cost of their purchase add no additional cost. It is also worth looking into credit card providers’ loyalty schemes, which can give customers points per pound spent to be exchanged for a host of extras. Again, this is only really a cost-effective solution if payment is made in full by the due date, or before an interest-free period expires.
Bank or building society loans are one of the most popular means of financing a loan. While these may not offer an interest-free period, they do give the borrower a sense of security in knowing that the length of the loan is finite providing all repayments are made. There are many loan deals in the marketplace and it is often worth checking with the bank or building a society that provides the applicant’s current account, as some banks offer preferential rates to their own customers.
For the larger projects around the home, such as a new kitchen or bathroom, many homeowners will look to a homeowner loan to provide the capital expenditure required. The rates on a homeowner loan are often lower than a conventional loan and certainly far lower than a credit or store card. A homeowner loan is, however, dependant on the equity available in a property and is secured on that property. Consequently, there can be far-reaching consequences if a borrower cannot keep up with repayments.
With so many options available, there is no real need to put off creating the home of your dreams.