Totallymoney.com recently carried out a survey that suggests the average British family wastes up to £795 by choosing the wrong financing option when renovating their bathroom.
The finance company also discovered that this was the case when renovating any part of the household of a similar cost, an average of about £4,500.
55% of the UK are happy to take out an unsecured loan with an average rate of 5.6% APR, whilst nearly 34% would borrow on an existing credit card with a massive APR of 17.31%. Staggeringly only 11% would opt for a brand new 0% interest credit card.
Women know best
Sorry lads, but when it comes to making the right decision about how to buy that new bathroom, he ladies know their stuff. They are 17% more likely to put the purchase on a new 0% interest credit card. Men are 30% more likely to make a bad choice and put it on an existing credit card that charges interest.
The Young Prevail
It seems the youngsters (25-34) are more savvy when it comes to saving money with just under 14% choosing a 0% interest credit card. This is in contrast to the over 65’s with only 8% taking the best option. 33% of the over 65’s would put this purchase onto interest bearing credit cards, wasting money unnecessarily.
The Welsh are savers
Residents of Wales tend to make a good decision when renovating their homes, with 80% of them borrowing on 0% interest deals. Scottish people however, are more reluctant to get a new interest free credit card, with only 7% prepared to do so for a new bathroom.
When improving your home, no matter how big or small, how you finance it should always be at the forefront of your mind. Deals are there to be had, so make sure you take advantage of them!