Reply to renovations went completely over budget...floating expenses on a credit card now

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[quote=Anonymous]We had a similar situation. I was planning a renovation on an old house with some flaws. Then we had some damage and were worried the situation would deteriorate if we did not begin the project soon. We tapped out our savings for the project and combined it with a personal loan from our bank.

I acted as my own general contractor and worked hard to control costs.

I don't think ours was a smart move; in retrospect we might have saved longer and bought a house that didn't need the work. But we figured that in the worst case scenario we could make payments on the personal loan (we set it up for 330/m over several years) and in the best case scenario we could refinance after the work was complete and pay it off speedily. (We bought the house for cheap, in an improving neighborhood, and our project stood to improve house value.)

We are about to refinance and pay the entire project off. We still have significant home equity, so in terms of our long-term financial picture it was a win. It was just a really risky "win."[/quote]

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