Your New Year's Resolution: Pay Down That Debt

Posted on: 28 December 2017

The new year is here, and it's as good a time as any to make a new resolution to improve your quality of life. While your friends are focusing on finding a spouse, getting in better shape, running marathons, or having kids, it's a great time for you to make a resolution of your own. This is going to be the year that you finally commit to getting out of debt.

If you're like the average American, you're deeply in debt. The size of the consumer debt problem is so large that it's being blamed for young people's inability to move out and start families, and for delayed retirements around the country.

This is your year to get out of debt and start down the road to financial control. Show that you're serious this year by getting a head start on your newest resolution by taking the following money saving steps.

Refinance your debt

If you're carrying high interest credit card debt, mortgage debt that is higher than 4.5%, or auto debt that is any higher than 7%, now is a great time to investigate refinancing opportunities. Slashing your interest rate makes more of your payment's dollars go towards debt elimination and will get you debt free faster than you thought possible. With rates still near their historic lows, now is a great time to consider a consolidation or refinance loan.

Another type of refinancing to consider is the cash out refinancing mortgage. You renegotiate the terms of your home's mortgage with a new lender, and you get out a cash loan in the process. You can use it to repay your most critical debts and make monthly repayments simpler. 

Transfer your balances

It's extremely hard to get ahead when you carry high interest credit card debt. When you're paying more than 18% on your outstanding bills, even treading water can seem like an impossible task. If you've got average or better credit, start looking for credit cards that let you transfer existing card balances without high fees. Many cards will offer you 0% promotional periods and will waive your first few balance transfer costs. Use this interest free period to hammer your debt.

Payments matter

Saving money is great, but it's payments that ultimately matter. If you're looking to get out of debt, hold a garage sale and pick up a side job. Anything you can do to bring in extra cash will bring you closer to your goal of debt relief faster than you thought possible.

For more information, contact a company like Acceptance Capital Mortgage.