Easy steps to reduce your debt so you can land the home of your dreams.
Debt can destroy your financial dream. Whether you have minor debt from a credit card or are staring up at a mountain of financial responsibilities, debt makes it impossible to get ahead. Paying off debt can sound simple enough but it requires dedication, determination, and persistence. Take a look at these smart ways to pay off debt fast.
Pay off as much as you can comfortably afford each month
Creating an emergency fund should be a top priority. Once you have topped this up, it’s time to focus on paying down your debt. The more you pay, the faster you’ll be free of your obligations. If you saved money at the grocery store last week, use those savings to pay off more debt this month. If you received a bonus at work, use that. Small actions can add up significantly when it comes to debt.
Take a look at your spending
Aside from the essentials like rent, transportation, utility bills, food, and other necessary expenses, what do you spend your money on? Review your expenses over the last week and month. Could you skip daily trips to your local coffee shop? Are you paying for a subscription you aren’t really using? Cutting expenses can help you to save money over time.
Start with the debts that have the highest interest rates first
Although some prefer paying the debts with the lowest balances first, it makes more financial sense to clear those with the higher interest rates out of the way first.
Cleaning up your finances is one of the first steps to take before applying for a mortgage for your next home purchase. Enlist the help of Andraya Coulter to find the best home loan to fit your needs and your budget. I assist California and Texas with all their home loan needs. Contact me to get started today!