Hey Everyone, I am Sam and I have been dealing with debt due to car payments and credit card usage at various interest rates. I would set my budget and focus on paying the debt by paying off the ones with the higher interest first.
I have been going through ups and downs when it came to paying my debts and even considered at one point to get a larger loan to consolidate thinking that it would make it easier; however, it all depended on debt to income ratio to receive the loan amount as well as the credit rating.
The reason that I developed this website was to help and share my experiences when dealing with debt situations. I believe that sharing my experiences in dealing with debt, tips and budgeting strategy would benefit all of us that are in this situation and to ultimately get out of it. I ask that if there is anything that captures your interest to get involved in my website. I do appreciate feedback and I love to share my feedback to help anyone out.
I would like to share with you my journey, trial and errors and budgeting techniques I have done to organize my situation to make my debt in control and to pay it off sooner. Note that I own my own home, co-owned with my sister, and still paying the mortgage while I am paying off my debt. This will be my third re-financing of my home as of 2017. In 2012 when I did my second re-financing I did have debt at that time and from the conditions of the bank where I was going to re-finance, I had to pay all my debts which led me to get a Home Equity Line of Credit towards my mortgage. As you know, given our current conditions such as health and dental expenses I had to use my credit cards and line of credit. At that time, we were benefitting from the near zero interest rate due to the 2008 Great Recessions. I took advantage of special rates that credit card companies were giving me and these were 0% interest for 12 months then 0.99% interest for 12 months. With this strategy, I was able to put more money to pay down the credit card principal faster. After the 12 months I would transfer the remaining principal and then again take advantage of the 0.99%, 1.99% interest rates. Different credit cards also offered promotions. The important thing to note is when taking advantage of the low interest offer and paying more than the minimum payment, this increases your credit score. Other strategies I have done was talk to financial representatives at banks where I held a line of credit and negotiate the interest rate to get the lowest rate. Remember that you can negotiate interest rates and not just take what the banks, credit unions or even credit card companies give you. With regards to credit card companies I would call them asking if there were any promotions and there were times where I was lucky and got low interest balance transfers. To this day I do some debt but from my past experience I am taking advantage of the financial institution’s promotions as 1) getting a low interest rate and paying more than the minimum payment shows the credit bureau that I have good budgeting skills and 2) I get the low interest rates as my credit score is very good.
If you ever need any feedback or support regarding your debt situation or debt consolidation, I would be more than happy to connect. Simply leave your comment below and make sure you visit my site regularly as I am always updating it with the crazy “ideas” and “information” that I come across that I know you will find interesting.
Anyways, I wish you all the best with your debt consolidation strategy and thank you for dropping by!