Here are five ways to pay your mortgage and other debts faster
If your mortgage allows you to make additional payments, consider applying your annual performance bonus, your tax refund or your gift money to pay your capital. Better yet, plan a few extra mortgage payments right from your payment schedule. A simple solution that payments every two weeks instead of every month you will shorten the repayment of your loan by several years.
Pay Your Debts First
You wonder if you should put money aside or pay off your mortgage? Here’s what you need to know: If your mortgage comes with an interest rate of 5%, the refund will be equal to a yield of 5% for your money. Your gains will be even more significant if you pay off the balance on your credit card interest rates. In most cases, you will receive a guaranteed return of 19%.
Reduce Your Expenses
Looking for ways to reduce your household budget and use the savings to pay down your mortgage and other debts. Start by slashing expenditure on luxuries. The few hundred dollars you save on restaurant bills, clothing, haircuts, manicures and the trips will give you a significant boost to reduce your debt.
Adjust Your High Debt Rate
If you have accumulated a long-term debt combined with a high rate of interest, for example a large balance on your credit card, your priority should be to repay. Consider obtaining a line of credit with a low interest rate to pay off your debt at high rate.
Require a Better Rate
Call the company that issued your credit card to negotiate a lower interest rate. Once you have liquidated the balance on your card, be sure to use the savings to make additional payments on your mortgage.