Credit cards are costly and usually have the highest possible rate of interest. An equity line is more than likely going to be considerably cheaper. The same amount of debt on your equity line should be a considerably cheaper payment that the total of your credit cards.
You can use your spread sheet to test different possibilities and pick the result that works best for you. The effect of moving your debit around will be very clear and help you make an informed decision. The budget spreadsheet is a great financial planning tool.
Where house prices are rising, you will have increasing equity in the home that will allow you to borrow more. In markets where prices are declining this may not be a wise approach. Remember your credit has to be in good enough shape to get the loan and you have to have enough equity to satisfy the lender.
The main thing to consider of course, is what will work best for you. You don't want to go into foreclosure because it could take five years before you get another home loan. Debt reduction is going to take time no matter how you do it, so if you have to go slower and not borrow against your home that may be the most secure option.
If your budget shows that you will not be able to make the additional mortgage payments then it is time to consider other options. Like any big task you tackle it a little at a time. Over a short period of time all those little actions will add up to big savings.
Sell your home and buy something smaller if you can. This will reduce your expenses each month. Coupled with other smaller changes this can really help. Use your budget spread sheet to dig out other areas where you could adjust and save more money.
The home is usually our most valuable asset. It is a great tool to help you lower your debt. You should always do all you possibly can to retain ownership of it.
You can use your spread sheet to test different possibilities and pick the result that works best for you. The effect of moving your debit around will be very clear and help you make an informed decision. The budget spreadsheet is a great financial planning tool.
Where house prices are rising, you will have increasing equity in the home that will allow you to borrow more. In markets where prices are declining this may not be a wise approach. Remember your credit has to be in good enough shape to get the loan and you have to have enough equity to satisfy the lender.
The main thing to consider of course, is what will work best for you. You don't want to go into foreclosure because it could take five years before you get another home loan. Debt reduction is going to take time no matter how you do it, so if you have to go slower and not borrow against your home that may be the most secure option.
If your budget shows that you will not be able to make the additional mortgage payments then it is time to consider other options. Like any big task you tackle it a little at a time. Over a short period of time all those little actions will add up to big savings.
Sell your home and buy something smaller if you can. This will reduce your expenses each month. Coupled with other smaller changes this can really help. Use your budget spread sheet to dig out other areas where you could adjust and save more money.
The home is usually our most valuable asset. It is a great tool to help you lower your debt. You should always do all you possibly can to retain ownership of it.
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