Top Debt Paydown Strategies

  • Top Debt Paydown Strategies

    Posted by FLH Team on August 11, 2024 at 12:24 am

    The journey to financial freedom often involves navigating the complexities of debt management. With a multitude of debt paydown methods available, how do you determine which is most effective for your unique situation? Join our forum to dive deep into this method, compare it with other popular strategies, and share your personal experiences. Whether you’re a seasoned financial expert or someone just beginning their debt-free journey, this forum aims to empower everyone with knowledge and insights into the best debt paydown strategies.

    Patricia Frawley replied 3 months ago 4 Members · 3 Replies
  • 3 Replies
  • Andy Rivas

    Member
    February 21, 2024 at 6:05 pm

    – Hey guys, I find myself thinking a lot about the easiest and fastest way to reduce my debts. I only have 6 remaining years off from my current mortgage but also have bill expenses, a couple of cards and a car to pay off. I am considering refinancing my home but still contemplating if that would be the best option as that may take me back to scratch, plus rate is too high right now. Your thoughts?

    • Elias Guerrero

      Member
      February 22, 2024 at 5:11 pm

      There are lots of credit cards that do 0% Balance Transfer for their introductory APR offer. Be mindful of balance transfer fees and ensure you can pay off the balance before the promotional period ends to avoid accruing more interest. If there is not an opportunities for you to to increase your income, might as well cut back on some of your expenses.

  • Patricia Frawley

    Member
    February 22, 2024 at 5:49 pm

    Let me tell you that not all credit card companies can give you a jumbo line of credit. If choose to refinance your home, you’ll end up with a large sum of money that you must put to good use to make it worthwhile. However, whether or not you invest that money to get an extra income, you’ll still face higher mortgage payments. Additionally, if you use unexpected extra money to pay off your mortgage, unlike with a Home Equity Line of Credit (HELOC), your payments won’t decrease, and accessing that money again would require another refinance or selling your home. Clearly, I would suggest choosing a HELOC over refinancing.

    Always remember too that these loans are secured against your primary residence. Mismanaging the funds and failing to keep up with payments could lead to losing your home. I mention this not to frighten you but to highlight the risks and encourage careful planning and a conservative approach with this money. If you’re financially responsible, getting a HELOC is a great option. Access to such funds can be very beneficial, as long as you use them wisely.

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