What’s that you say…good versus bad bills? Aren’t all bills created equal?
Unfortunately, many people think the answer to the latter is yes.
I’m going to dispel that notion with a simple example. Let’s say you go into a store and find the “widget” you need for around $22.00, but next door you find the exact same thing for about 5 bucks. That’s a big difference in price and any sane person would obviously opt for the better deal. Right?
Well, if it’s so obvious, then why do smart homeowners plunk down a piece of plastic – and inherent 20+% interest rate – when they could be getting a much lower rate with a home equity loan or through a refinance?
Bad debt is using a credit card to pay for home improvements, home maintenance, dream vacations, college tuitions and such. Good debt is when you do the same at a fraction of the cost.
In fact, even better is when you consolidate the mountain of credit card debt and accompanying penalties into one manageable – and far less expensive – home loan. It can change your life and open a door to a financial future that you never thought possible.
So take out your calculator – or fingers and toes if you’re more comfortable – and see for yourself the difference between what you are paying today and how much lower it could be tomorrow. Better yet, talk with an expert Loan Advisor about a mortgage loan; they can show you how much you can save.
Written by: Royal United Mortgage LLC Blog Team
Published: 10/27/2015