Saturday, February 16, 2008

Buddy's Tips #005 - Consolidation Loans

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.

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