Now that you know your FICO score, it is time to get aggressive about reducing your debt. Your home can get you out of debt by allowing you access to low cost money via the equity you have built up in your home. Here are a couple of things you can do:
You can re-finance your home to a lower interest rate that will allow you to spend less per month on your house payment. This savings can be added to your RMF to accelerate your debt reduction even more. It is not uncommon for people to save hundreds of dollars per month by re-financing.
You can pay off your high interest credit cards by taking out a home equity loan. Let’s say you have $20,000 of credit card debt at 18% interest and $30,000 of equity in your home. You could take out a home equity loan of $20,000 at maybe 8% interest and place the monthly savings towards your RMF! Imagine how that would speed things along!
(Note: This is where knowing your credit score is a huge help).
As an added bonus, the interest on both of these loans can be deducted from your taxes for even more cash to place to paying off your debt.
On of the things you will find out about me is that I like to have choices. I reckon it leads to better decisions. If you go to your local bank to get a loan, how do you know you are getting a excellent interest rate. Rather, I have used a mortgage broker who will get rates from multiple banks and let you choose the loan that you want to use.
Best yet, you can do nearly everything over the internet. If you are interested in taking out either of these loans, click here. You can fill out your application, be approved, and select your loan all within the next hour.
The internet is incredible!