With interest rates likely to remain low, some homeowners see borrowed cash as a means to kick-start a major home improvement.  Yet many critics blame easy credit as the cause of unreasonable consumer debt. 

If you’re thinking of securing a loan to improve your home – even at a very low interest rate – you should consider the following advice to ensure you do not put yourself at unreasonable financial risk:
• Do not rely on renovations to immediately improve the resale value of your home.
• Look into alternative means of financing, so that you do not use your home as collateral for a renovation loan.
• Budget the pace of your payments to contractors, keeping track of progress (including performance guarantees and contract obligations) so that you are not paying out borrowed money for work that is not yet completed.