I did a mortgage application last night paying off a first and second mortgage as well as saving the client’s $595 per month. They also wanted to pay off some credit card debt which would have added mortgage insurance to the transaction, so I advised them against doing that.
I recommended that they take the savings each month and pay off the smallest credit cards first. Once the smallest card was paid off, then add the money that would have gone to that card and add it to the $595 and then pay off the next card and keep that process going until all cards are paid off.
Once you start a plan like this, you need to be extremely discipline, if not it is easy to fall back into bad credit card habits.
This is a great article with tips to start the new year in the right direction!
7 Tips for Keeping Your Financial Fitness Resolution
By: Rick Rogers
