Oct 25, 2007 @ 01:25 pm by admin
United First Financial, a company we’ve profiled a few times previously in this blog, offers the Money Merge Account to help homeowners pay off their mortgages earlier than the typical 30 years that most take. The Money Merge Account is a very smart way to reduce the amount of interest homeowners pay on their homes, however, I’ve come to realize there are more benefits to it than just saving mortgage interest.
Utilizing the money merge account can also help homeowners consolidate other debt, such as credit cards. As I mentioned in my previous post, credit card interest rates can skyrocket, forcing you to pay much more for items than you would if you paid with cash. And, by only paying the minimum payment on credit cards, it can take up to 18 years to pay off those debts! (Almost as long as a mortgage, but without any equity!)
Utilizing other resources to consolidate your debt can help with what may seem to be an insurmountable task - paying off your debt. Living debt free is rewarding, and it can help you feel free from the traps of creditors.
Oct 25, 2007 @ 01:01 pm by admin
Credit card companies like to send offers in the mail in the hopes that they can entice people to sign up, charge things they can’t afford, and pay ridiculous interest rates. When you accept a credit card offer for 0% or other low interest amounts, it is typically for a short amount of time. If you are ever late or miss a payment, those interest rates can skyrocket to 30% (and sometimes more!).
It’s true…you need credit cards to build credit for yourself to be able to get low mortgage and car loan rates, however, credit cards can also ruin your credit. Be cautious about which cards you sign up for, and be sure to pay off your balance every month. That way, if the credit card company does try to charge you 30% interest, it won’t really matter because you’ll never pay interest if you pay off the balance every month.
At any rate, be smart about what you purchase. Don’t buy what you can’t afford. Chances are, that big screen hdtv may look fun now, but will it be worth it in a year when the latest model has come out, but you’re still paying for last year’s model? Save up, buy the tv (or whatever) when you can afford to, and enjoy the peace of mind that comes with living debt free.
