5 January 2011
In addition to it, you may also consider changing your payments schedule. If you have monthly payments, think about bi-weekly variant. It will change the annual sum just a bit, but it will certainly affect the overall interest you pay.
• Consider consolidating all your debts
Another variant is debt consolidation. The problem is that many people have a lot of different debts, such as mortgage, car loan, credit card, line of credit etc. And, of course, the rates are different. Here you may think about consolidating all your debts. You’ll pay to one lender and, what’s more important, you may get the lower overall rate. Ask your mortgage broker to find the most suitable variant for you.
• Try to set the annual budget
The beginning of a new year is always the time for new resolutions, changes and making plans. So it’s quite a nice idea to set the annual budget in order to maintain it during the whole year. In this case you’ll definitely save more money, so it will help you pay off the debts even faster.