If you are looking for more financial freedom on July 4th, here are some ways you can pay off your debt quickly. (iStock)
If you sit back by the pool, grill burgers, and think about how to become more financially independent on July 4th, paying off debt is a good place to start.
In today’s economy, low interest rates have opened up several avenues for Americans to get out of debt sooner than just making their monthly credit card payments. Paying off debt will affect your credit, increase your available credit, and allow you to enhance your financial wellness journey in a number of ways.
Here are five debt strategies to help you pay off debts this Independence Day:
- Take out mortgage refinancing with payout
- Refinance your student loan
- Find better rates
- Take out a debt consolidation personal loan
- Look at a credit card with a credit transfer
When you’re ready to get started on the journey to greater financial freedom, reach out to Credible to speak to a credit professional and see what options are available to you.
PAY OFF YOUR DEBT – 5 STRATEGIES TO MAKE IT FASTER AND EASIER
Take out mortgage refinancing with payout
A cash out refinance allows homeowners to potentially get a lower interest rate while pulling cash out of their home equity and using it for other things like home renovations or amortization plans like debt consolidation. Most mortgage lenders require homeowners to hold at least 20% of the equity in their home, but as home prices rise, this level is becoming easier and easier to achieve.
Vulnerable equity – the amount of equity homeowners can borrow while still holding at least 20% equity in their homes – rose 8% annually in the first quarter of 2020 to a record high of $ 6.5 trillion, according to the data and mortgage solutions company Black Knight. The company’s report also showed that 90% of homeowners with such equity would also benefit from refinancing their mortgage, meaning they are above the current national average.
If a payout refinance fits your debt management plan and you want to see what refinance options you have, visit Credible to compare interest rates and loan options from multiple mortgage lenders at the same time.
Refinance your student loan
Due to the coronavirus pandemic, holders of federal student loans are currently subject to a deferral period, so they do not have to make payments until September. However, private student borrowers still have to make payments. Those with private student loans are also not eligible for student loan waivers, so repaying their loans is often the only way to get rid of that debt.
Refinancing the student loan can help lower the interest rate on your loan, which will reduce your monthly interest payments and allow you to use the money saved to pay more on the main balance.
You can also pay off your debts by changing the terms of your student loan. With refinance rates at all-time lows, it could seriously affect the ability of student loan holders to pay off their debts more quickly. Visit Credible to view a rate table and compare multiple student loan lenders at the same time.
Student loan refinancing? HERE’S THE CREDIT SCORE YOU NEED
Find better rates
It’s always a good idea to shop around for the best interest rate, whether it’s a personal loan, student loan, car loan, home loan, or even a credit card. Many loan applicants do not realize that there is an opportunity to shop at better prices even after pre-qualifying with a lender.
Finding the credit needed to make large purchases – like a car loan or a home loan – from multiple lenders in a short amount of time will not affect your credit score. These inquiries are aggregated as one hit on your credit report and can potentially save you thousands of dollars in interest over the life of the loan.
Take out a debt consolidation personal loan
Personal consolidation loans can help pay off high-interest credit card debt, lower your interest rate, and get you on your way to paying off debt in a predetermined period of time. Record low interest rates minimize the monthly interest on a personal loan.
When deciding on a consolidation loan option, it is imperative that you be careful not to continue taking advantage of the new loan available or you could be financially worse off. If you’re interested in seeing your personal credit options, head over to Credible to get prequalified in minutes without sacrificing your credit score.
5 SMART WAYS TO CONSOLIDATE CREDIT CARD DEBT – AND 5 THAT YOU SHOULD NEVER DO
Look at a credit card with a credit transfer
Similar to a personal loan, credit transfer credit cards also remove debt from high yield cards. However, these cards usually offer a sign-up bonus of 0% interest for the first six to 18 months, so you have time to pay off debts before you charge the regular credit card interest.
Users should be careful with this option because new purchases will accrue interest quickly, and if the debt is not paid off during the 0% interest period, interest will accrue even after that period.
Visit Credible if you want to compare different prepaid credit cards, their tariffs, terms and conditions, and apply for the one that best suits your financial needs.
Starting debt payments this summer can be a critical step in getting you on your way to financial freedom. There are several tools that can get you started – like transferring your balance of debt where debts are settled on a credit card with a new credit card at 0% interest on the amount paid out, or a mortgage refinancing with payout using the equity of your home. Visit Credible to speak to a credit professional and get started today.
Do you have a finance-related question but don’t know who to contact? Email the Credible Money Expert at moneyexpert@credible.com and your question could be answered by Credible in our Money Expert column.
source https://collegeeducationnewsllc.com/how-to-pay-down-debt-this-fourth-of-july/
No comments:
Post a Comment