Renovation and existing debts
Renovations to do and debts to carry at the same time. We separate the work costs, the balances to repay, and above all the monthly payment from the total interest.
Situation
You’re thinking about renovations, but you’re already carrying several debts with high payments.
The starting figures
- Renovation work
- $72,000
- High-rate debt
- $41,000
- Debt payments
- $1,240 / month
- Mortgage balance
- $296,000
What the figures tell us
Lowering your payments and reducing your debt are two different goals. Spreading card and line-of-credit balances over a long amortization frees up cash every month, but the total interest climbs.
Options to compare
We compare three routes (renovations alone, consolidation alone, a refinance combining both) always separating the monthly payment from the total interest.
The trap to avoid
Consolidation only works if the debts don’t build back up behind you. So I show you the total cost and the balance five years out, not just the new payment.
The decision to make
Which needs to finance, over what period, and with what budget discipline, so the transaction solves the problem instead of moving it.