Tips to Knock out Holiday Debt Fast from your Ottawa Mortgage Brokers
If your holiday budget was derailed and you find yourself with a high debt load to start the New Year, you need to take control of your finances and pay off your debt fast. By avoiding the issue or making only the minimum payments on your credit accounts, you will not only be paying for your oversight far longer than necessary, you could risk damaging your credit. Follow these tips from your mortgage agents of ReferralMortgages.com in Ottawa to knock out holiday debt fast.
Create a Tight Budget
Evaluate your current financial position, making note of all credit account balances and minimum payments, monthly expenditures and all sources of income. Be very honest with yourself and set a tight budget for the first quarter of the year. Cut down on extraneous expenses like entertainment or eating out. Once you have set your budget, determine what is left over that can be applied to your debt.
Snowball Debts to Pay them Aggressively
With all of the minimum monthly payment amounts accounted for in your budget, determine which account is going to cost you most. Generally, this will be a high-interest credit card with a sizeable balance. Use the money you determined you could apply to debt to pay that account quickly. Once that account is settled, move on the next and so on until all of your debts are paid.
Consider Consolidating Accounts
If your credit is in good standing, it may be worth your while to secure a low interest credit card or line of credit to transfer the balances from the higher interest cards. Even a few percentage points can significantly lower the amount of interest that is added to your debt every month. Do not fall into the trap of charging your paid off accounts again though, because you may damage your credit and fail to qualify for a mortgage or other significant purchases you may need to make.
Speak to your Ottawa Mortgage Broker
If you are close to renewal time on your mortgage or find yourself in a particularly tough credit situation, your mortgage agent of ReferralMortgages.com may be able to help. We offer a variety of mortgage products for residential refinancing or bad credit mortgages at competitive rates. It may be a good idea to consider mortgage options to reduce your overall debt load.