Wednesday, February 20, 2008
Here is a technique I have used quite a bit. In the near future I will add my pre-payment techniques to this section. I pay my mortgage on a 25 day cycle. One technique I have used to maintain my 25 day payment schedule on my mortgage is to obtained a secure or unsecured loan to make my mortgage payment or prepayment. This technique can also be applied to other bills. While this may sound weird, it is actually a good way to meet all payment obligations in advance; it gives me an additional 30 days until the next billing cycle; and it gives me the time needed to pay-off the secured or unsecured loan during the 30 day time frame. Everybody wins and I do not have to worry about when I get paid to make my mortgage payment. Once I'm paid I simply pay off the loan.
Saturday, February 16, 2008
In January 2009 I consolidated a $5,000 energy loan into an existing share loan, which did two things for me: 1) eliminated a monthly payment of $136 to the City (so I have freed up $136); and 2) transfered my 5% energy loan to a share loan at 3% on which I pay a regular monthly payment anyway (so it cost me nothing new). I added the $136 to my monthly payment on the share loan to accelerate payoff. Consolidation loans are good when they free up funds to use in additional debt reduction strategies. This is how you should use Consolidation Loans.