Suggestions on ways to pay off debt/increase savings? I have pretty good sized IRA, 401K, stocks, ect.....but a bit of ccard debt and 0 regular savings. I have 2 car pmts and a mtg pmt.
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EveryoneNeedsHelp
ANSWERS: 3
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One word.....AMALGAMATION....Find out if you can take out a personal loan from the bank...enough to pay off credit cards (then cut them up...lol) and car loans. The loan interest on a personal loan at the bank tends, at least here in Canada, to be alot less than credit card interest rates. Then instead of 4 payments you have two. Mortgage and private loan. The cars could be accepted as collateral at the bank for the loan. Then make your mortgage and car payments twice per month instead of once. Cuts the payment in half, more is paid down on the interest and principal than paying it once per month. Can cut a great deal of time off of both mortgage and loan by paying off more principal monthly than the standard way of mostly interest paid and scraping away at principal.
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The 401K does not count as savings, neither does the IRA. That money is considered unavailable. Depending on the return on the stock, pay off the cards by selling the stock, dump a good deal of the remaining balance in an ING savings account at 5%. Pay off the cars as soon as possible to drop your debt service ratio and your debt to income ratio. These are key factors to determing creidt score.
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Live like a miser...sell one of the cars and pay the other car and the credit card debt off quickly. Pay the highest interest off first...also save up and get an emergency fund of $1000 dollars you can put back and do not touch hence the name EMERGENCY FUND. Go to Dave Ramsey's website...if you can get him on the radio listen...he is great!!! Good luck with it and best wishes:)
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