Home improvement requires financing, and sometimes what you have in your savings is not enough to cover the costs. You may find yourself getting into debt because you have taken financing from an institution like a bank, in the form of a loan or mortgage refinancing.

In some situations, you may be unable to make loan repayments and declaring bankruptcy may be the only way to sort yourself out temporarily. However, filing for bankruptcy will mess up your credit score making it harder for you to access financing in the future.

So, how can you avoid bankruptcy when doing home improvements?

Consider Getting Rid Of Some of Your Assets

If you find that you’re falling behind in some of your payments, raise money by getting rid of some of the assets you have. Such assets include jewelry, unused electronics, and clothes among others. Online platforms like Craigslist and eBay will give you an unlimited market for your stuff. If not, yard sales, car boot sales, and flea markets are places you can consider using.

Get a Side Job

Your job may not be giving you enough income to pay off your debts. You may, therefore, want to consider other ways of making money including; offering lawn mowing or babysitting services to your family and friends.   You can find work online depending on what your strength is, for instance, if you are good at writing, look for writing gigs on some freelance sites.

You can also make money by turning your hobby or talent into a money-making venture.

Negotiate Repayment Rates with A Lender

There is no lender who once you to be bankrupt because they will not get their money back. So it is in the best interests of both sides that you continue to pay them, even if it means they renegotiate the repayment terms.

Talk to your lender and see if they can lower the amount you pay every month, even if it means that your repayment period will be longer. Once you have your finances in order, see if you can make lump payments to clear the loan faster.

Turn to your family and friends

If the situation gets tough, turn to your family and friends. Be honest with them and tell them that you are facing financial difficulty and will temporarily need their help. Be careful though. You do not want to lose the relationship with this group of people by not paying them back.

Live Within Your Means

When you are on the brink of bankruptcy, unnecessary expenses have to go. Whether it is that gym membership, eating at that fancy restaurant, taking a cab to work as opposed to the bus, buying unnecessary things, going for manicures and pedicures, etc.  All these have to stop until you are back on your feet.

Now is the time to shop in bulk, use coupons and discounts as much as possible. Make a need list budget and stick to it, among other money-saving measures. You will be surprised at how much money goes down the drain due to frivolous spending.

Refinance Your Mortgage

Refinance your mortgage to get some money. However, be clear about why you’re refinancing the mortgage, and any money you get should go towards the settlement of outstanding debts. Negotiate for low-interest rates, so you do not put additional strain on your finances.

Be Realistic

Be realistic about what you can afford when doing your home improvements. If your financial situation is not as stable as it should be, now may not be the time to take on significant improvements like replacing the home security system, putting in a new roof, repaving your driveway among others.

Take On Some of the Projects Yourself

Home improvements do not have to lie entirely with the contractors.  There are several projects you can do on your own or with the help of family and friends, for instance, painting the walls, replacing the picket fence, among others.

There are many DIY tutorials online that can give you great ideas on how to make home improvements on an almost zero budget. Think about it this way; you will be saving on cost and will have your personal touch in some aspects of the home improvement.

Final thoughts

Declaring bankruptcy can be devastating for an adult.  However, even if you do decide to work on some home improvements, be careful about your spending and only do what you can afford.  Do not rush to the bank to take on loans that you may not be in a position to pay.

Home improvement is a continuous process, and unless the wind has blown off the roof or there’s a gaping hole in the ceiling, you can always take it slow and work at a pace that is in agreement with your financial situation.