Debt Elimination Strategies

I have a friend who accumulated a lot of debt, and he was looking for some advice on how to pay it off. Since I was in the process of discussing debt elimination, I thought this would be a good time to share some of these ideas with you, too.

Most people have some kind of debt. I’m listing techniques for the most common debt: student loans, credit cards, and mortgages. Here are some ideas that could help if you’re looking to become debt-free.

1. Refinancing Student Loans. Today, there are numerous competing lenders willing to refinance student loans at a lower rate. I recently had a friend refinance her student loan from 7% down to 4.7%, which brought her a huge monthly savings. Take a look at Navient or Pen Fed.

2. Transfer Credit Card Balances. Here are the best credit cards for balance transfers according to Lending Tree. If you can get a 0% interest rate, all your payments will go toward debt principle.

3. Recast a mortgage. When most people think of saving money on a mortgage loan, they consider refinancing the loan to a lower interest rate. This can save you money. However, if you have a lump sum you want to put on your debt, you can recast the loan. Recasting can save you a lot without you having to pay refinance fees. Here’s an article that explains recasting versus refinancing and whether or not it’s a good strategy for you.

I want to help you achieve your financial goals this year. If you have a question or comment, post it on my blog or send me an email. I always enjoy hearing your thoughts and questions.

And if you haven’t already picked up copies of my books The Money Mission, Tax Saving Strategies, and The Blended Retirement System, you can do that today.

Have a great week, and until next time, I wish you unlimited success!

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