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Get 'er Done Paying for Your Summer Projects

June 26, 2014 • General News

Last month in our blog we discussed staying safe and being effective while completing your summer projects. This month, we will discuss ensuring that you have the tools necessary to make smart financial decisions when you are considering summer projects. Whether large or small, projects have a way of adding up very quickly.

So, how are you planning on paying for your summer home projects? There are several different options. Some options might be best suited for some, while other options might work better for someone else. Whichever option is right for you, it is important that you can focus on the task at hand and not lose sleep over the financial aspect of your summer endeavors. Here are some of the different ways that you can pay for your summer project.

1. Savings-If you’ve anticipated your project and saved up for it, then this is the way to go. This ensures that you don’t take on any additional debt and gives you the feeling of complete ownership of the project. It also can help to keep you on a strict budget, if you do not allow yourself to spend more than you have saved for.

2. Home Equity Loan-Home equity loans are a great option if you have enough equity available in your home. A home equity loan is typically for a fixed amount that you pay down until the balance is at $0, similar to an installment loan. These types of loans are great if you know the exact amount of your project and do not need a revolving line of credit.

3. Home Equity Line of Credit-These types of loans are revolving, meaning that you once you make a payment towards the loan, a portion of the payment becomes available for use again. These types of loans are great if you are going to be completing several projects or don’t have an exact total cost estimate of the project.  These loans are also handy in the instance that you run into an unexpected expense that requires immediate attention.

4. Credit Cards-The interest rates on credit cards can be higher than traditional home equity loans, so many times a credit card is used for small projects. This saves money in the form of interest paid, however, some credit cards offer incentives and rewards for using the credit card.

5. Financing from the Service Provider-If you have hired a construction company or commercial contractor to complete your project, you might be able to seek financing through their sources. At times, incentives such as “no interest” periods can be offered, but it is always at the discretion of the financing company.

As always, your friends at Spokane Federal Credit Union are here to answer your questions and help you make the best decision for your current situation.   Don’t hesitate to give us a call at 509-328-2900 or visit us on our website at https://www.spokanefederal.com/line-of-credit for more information. Have a great summer!


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