10 Ways to Decorate Without Debt

Homeowners spend an average of about $9,000 to furnish and decorate their new homes in the first year after they move in, according to the National Association of Home Builders. After coughing up cash for a down payment and closing costs, many owners don't have those extra thousands in savings, so they're tempted to decorate with the help of credit cards.

But financing furniture is like adding a penalty to your new mortgage. With planning and patience, you can decorate your home without adding debt.

"The first thing people need to do is come up with a budget, then decide what areas to concentrate on," says Elizabeth Lewin, a certified financial planner and co-author of "Making Bread: The Ultimate Financial Guide for Women Who Need Dough." "Ask yourself: What is most important on your list? Is it a stainless-steel refrigerator or a high-definition TV?"

Once you've prioritized your list and figured out how much you can spend without borrowing, follow these expert tips to stretch your decorating dollars.

1. Don't move home without it. "One of the biggest mistakes I see is when people don't take their existing furniture with them when they move," says Mindy Miles Greenberg, owner of Encore Decor in New York City and a designer on HGTV's "Decorating Cents" show. People aren't going to necessarily keep the old furniture, she says, but if they don't move the pieces into their new home, the dwelling may be depressingly bare. "You don't want to come home to a folding table while you're trying to decide what new furniture to buy." Doing so would make it tempting to act on an impulse purchase at an expensive retail store. Stick with current furnishings and make improvements in a planned manner.

2. Look for low-cost color. One of the quickest and cheapest ways to transform the interior of a home is to paint it. Home-improvement centers often have unused mixed paint on hand that did not quite match a previous customer's color choice. Ask your local dealer if they have any recent mix-up mistakes. If it's a hue you can live with, you could buy a gallon or two at a deep discount.

3. Shop your house. Interior "redesigners" have made careers out of showing others how to decorate their homes without buying anything.

Pam Faulkner, a redesigner and owner of Faulkner House Interiors in Arlington, Va., says that homeowners can save big bucks if they approach decorating in the same way she does for her clients.

"I shop their house," says Faulkner. "I use what already exists in their new home to create a new look." For example, she recalls helping one client find a printer stool for his home office. She spotted an unused silverware chest in the dining room that did not match the room's colors. She moved it to the office. "The stool fit perfectly, and the silverware chest was the same color as the client's desk," she says. Initially, her client did not even realize that the "new" stool was his unused furniture.

4. Make a model. Remember in kindergarten when you enjoyed cutting and pasting?

Rediscover those days by making cutout models of furniture you're considering purchasing, and arrange them on more cutout models of the rooms in your home.

"Gather pictures from magazines. Make templates. Create files for each room so you can see different things that move you," says Greenberg.

Doing so will help give you a feel for your newly decorated room before you make a big purchase.

It will also help reduce the risk of ordering bulky furniture only to discover that it does not fit in your space.

5. Shop the information superhighway (and make a stop in High Point, N.C.) Consider looking online to find furniture deals that aren't local. Since several furniture manufacturers are based around High Point, N.C., it has become a hub for bargains. The High Point Chamber of Commerce reports that thousands of people from all 50 states and more than 100 countries purchase furniture from area stores each year. They are actually the reason the bargains exist.

"We buy from the same manufacturers at the same wholesale prices (as other retailers)," says Jim Cornelison, president of High Point-based Warehouse Discount Furniture, one of the retailers in the area. "The only difference is we have a higher volume, so can have lower profit margins and offer lower prices."

While you're on the information superhighway, don't forget to visit furniture stores that are based in other cities. "A company could be in Kentucky or whatever," says Cornelison. "If they don't have the expenses of a brick-and-mortar shop, they can offer you a lower price."

Whether looking online or in a local store, be sure to record the manufacturer and model number of the piece of furniture you are interested in so that you can comparison shop. Understand how shipping costs will be computed, and do general due diligence to make sure you are engaging a retailer you trust.

6. Time large furniture purchases. Some experts say that January is the best time to buy furniture on sale because retailers are closing out last year's inventory. Others say that the best reductions happen around April and October, when retailers buy next season's merchandise. Everyone is probably right.

"There are furniture promotions going on all the time," says Greenberg.

Cornelison agrees. "On any given day, some retailer is going to have a piece of furniture that they want to move out of their showroom, and they will price it less than anyone else, including High Point dealers," he says.

Perhaps the best time to buy furniture, then, is the day you have saved up enough to pay in full. Otherwise, financing can add high interest fees that exceed the value of any discount -- especially if paid late. That eliminates the benefit of any "sale" price.

7. Reface, don't replace. If your new home has boring kitchen cabinets that don't fit your style, it may be tempting to toss them out and buy new ones, but consider cabinet re-facing to save money. "Instead of ripping out the entire cabinet, you just put up a nice front, and you're done," says Daryl Coley, owner of a Kitchen Solvers franchise in Tulsa, Okla. "Most of the time it takes a week to two weeks. You can save 30 to 40 percent (over the cost of installing new cabinets)."

8. Network with neighbors. Simply getting to know the people in your new community can help you save on decorations. "My son and daughter-in-law heard that one of their new neighbors was moving and needed to get rid of a dining set," says Lewin. "They bought it and got a good deal."

Don't forget about the "neighbors" who sell through consignment stores, online auctions and garage sales. Many include pictures with their listings. Research first, and then make arrangements to visit only if you find something that's on your priority list. That way, you'll be less likely to waste money on knickknacks you won't use.

9. Look for bargains at big-box retailers. And don't be afraid to buy bargain lighting. "Not every lamp has to be an antique," says Greenberg. "Get away from the stigma of not wanting to go to a home-improvement center to buy a lighting fixture. A lot of the items there are very good quality, without the extra cost."

The best-priced light is sunshine streaming through windows, of course, but Greenberg says that buyers sometimes get into trouble when buying window treatments too soon. "Invest in paper shades until you are able to determine the look and feel of your desired window treatment," she says. After living in a home for a few weeks, owners may decide that a window needs more privacy -- with heavier window treatments -- or vice versa. During this decision-making period, it is better to put up temporary paper while saving for high-quality window treatments. The operative word is "temporary," though. "Don't think that a room looks finished without a window treatment," says Greenberg. It's just that this is one piece of decoration that takes time to find.

10. Invest in an interior decorator. At first glance, hiring a design pro might seem like a sure way to bust your budget. But independent designers can help you stick with your financial plan. If you have a friend with design talent, recruit him or her. "I know a couple of people who are just so clever when it comes to color and putting things together," says Lewin. "When you can find a friend like that, they're worth their weight in gold."

Before calling a professional decorator or a talented friend, be ready to explain how you you're going to use the space. "Exhaust your imagination first, then call your decorator," says Greenberg.

Buying a home is an expensive process, so don't add to your expenses by financing your furnishings. By crafting a budget and looking for good deals, it is possible to decorate your abode without borrowing.