Debt
Consolidation
How
To ESCAPE The DEBT RAT RACE!
I have seen
many articles on this subject but normal they all end with the
same result which is nonsense. They don't touch or even mention
the first thing you need to do which is change your mindset It
is a proven fact that the human thought process works in patterns
or sometime referred to as habit forming patterns. It may be the
way you wake up in the morning to the way you dress to the way
you eat your breakfast or to any aspect of your life, like how
you
spend your money.
Since I've
been in the business for as long as I have it has given me the
chance to look into the lives of many other people and most of
it come from the changes we go through in life from having kids
to college tuition to getting sick to overspending to loosing
our jobs. Some things are in our control while others are not,
so knowing this you need to plan ahead which is not always easy
because of the changes we go through in life.
Sometimes
procrastination like with any other bad habit can be cured but
first you need to admit or realize there is a problem, then you
seek help. But admitting or understanding there is a problem is
the first step just like with alcoholics and drug abusers. Overspending
is a bad habit or living in denial and what I mean is things like
I cant afford to save any money because of xyz or what ever reason.
Back in the 1940's and 1950's the way of life was to save for
tomorrow don't live for the day because tomorrow comes a lot quicker
than you think. Now let's get down to brass tacks here.
1) Sit down and add up you monthly bills and expensive
2) Know look at your income for the month and do the math
3) Devise a plan of action there are a lot of ways to do this
the easy way is to refinance and consolidate there are a lot of
benefits to that like tax deductions more money monthly for retirement
and etc...
4) You need to look at all of your options lets say life just
happens which it does more then it doesn't. If it doesn't make
sense financial to refinance then you might want to look at what
I call and others call the snow ball effect and this is for those
who are discipline enough to do it you start with the smallest
bill and work your way down just like a snow ball on the top of
a hill by the time you get to the bottom you got one big snow
ball but in this case it would be a lot of cash back to you you
pay one bill off then take that money and move to the next and
so on it take awhile but it works
Now a good reason not to do a consolidation refinance are the
following reasons:
1) No equity in the home with out being flip upside down in it.
2) You are selling your home in a year or less.
3) The payment is the same as your monthly out put now.
Notice in the above suggestions I said nothing about a higher
interest rate that is because if you have a 5% interest rate on
your Mortgage and you get a offer for a 7% refinance interest
rate and consolidate your monthly out put and save lets say $300
or more its worth it and this is why now you have done three things
free up some extra cash and stop the monthly compound interest
game which we all know in the long run we pay back three to five
times as much as we borrow on our credit cards and revolving debt
and created a tax deduction for your self which is great at tax
time.
In other words
it is not about a interest rate its about how to stop being the
middle man and put more of that hard earn cash back in your pocket
and the fourth thing is this if you pay one full extra Mortgage
payment a year you cut your Mortgage from 30 years to 23 years
and 8 months now imagine adding a extra $150 to $300 a month what
that will do the wealthy have know about this for years and do
it all the time and teach to there kids so understand it is not
about a interest rate you cant spend a interest rate or put your
kids through college with it or by food with it so don't get caught
up in the interest rate game look at the financial position it
puts you in numbers don't lie.
To touch on the credit card thing here is a little know fact if
you have a credit card with a balance of 10,000 dollars and pay
the 2% minimum which would be $200 dollars it would take you 8
years and 9 months to pay it off and that is if you never use
it again and keep paying on it so lets add that up 8.9 years is
105 months at a payment of $200 dollars which equals $21,000 see
what I mean you can check the figures with any compound interest
rate calculator or credit card calculator you can normally find
them any were on the web.
My point is this that $300 dollar a month 7% refinance is much
better than a 5% interest rate that does nothing but let you brag
to your friends while your lender laughs all the way to the bank
with your money.
But again to refinance it has to make financial sense and you
need to look at all aspects long term and short term how does
it benefit you because after all you are the one who pays the
bill not some greedy bank or broker who only has his best interest
in mind not yours I hope this report helps you my office is always
open to those who seek help in understanding for a better life
and well being and most of all a piece of mind that lets us sleep
well at night knowing we made the right decision for our self
and love ones.
Contact us
today to understand how Debt Consolidation can help you escape
the debt rat race!
Toll Free
Call - (866) 323-7603