4 Effective Tools to Help Reduce Your Debt
If you own a home, went to college, or had an unexpected expense arise, you likely have some form of debt. Borrowing money isn’t a bad thing. When managed properly, it can help you positively grow your financial health. Taking the time to find the option that fits your situation is time well-spent.
#1 – Consider a vehicle loan refinance.
It may make sense to refinance your vehicle loan for a lower rate, but have you ever considered rolling another higher rate loan (like a credit card or personal loan) into it? Whether you still owe on your vehicle or it’s fully paid off, a low-rate vehicle loan could help you pay off other debt more efficiently.
#2 – Leverage your home’s equity.
A home equity loan can be used for more than just a home renovation. If you own your home, a home equity loan or a HELOC could help you pay for a wedding, fund your child’s college, or pay off a high-rate credit card. With options for a lump-sum loan, a revolving line of credit, and a cash payout, using your home’s equity can be a good debt management strategy.
#3 – Take advantage of a credit card balance transfer.
Have you ever signed up for a credit card to cash in on the initial discount and then got stuck with a high rate? A balance transfer could be a great tool to help get your credit card debt back on track. Many balance transfers (like at BHFCU!) offer a low interest option for the first several months or year. With less interest, you can pay more quickly on principle.
#4 – Double check your loan rates and consider making a change.
Don’t have equity to draw on? A personal loan can still have a lower rate than most credit cards or short-term loans. With a fixed term, it can also save you from additional spending.
We would love to help you manage and pay off your debt quickly and efficiently! Stop by one of our locations or call us at 605-718-1818 to get started today.