3 Ways to Better Pay Off Your Debt
Is your New Year’s resolution to work on lowering or getting out of your debt? You’re not alone.
The average household has nearly $15,000 in credit card debt alone. Once you add in mortgage, car, and student loans, the number can feel staggering. To help you, we want to share several options to help you get back in control of your debt.
There are several benefits of loan consolidation that can help you save money and simplify your life. First, a consolidation loan can lower your payment, which in turn will free up money in your monthly budget. They also can reduce your interest rate, enabling you to pay down your debt faster. And finally, you’ll enjoy the simplicity of a single payment instead of coordinating and tracking many.
At Wasatch Peaks, we consolidate auto loans, mortgage loans, credit cards, and signature loans.
If your current debt is difficult for you to track or the multiple payments are overwhelming, merging your debts may make it significantly easier for you to pay down your debt. It can be helpful to prioritize the highest interest loans first to avoid paying more in interest.
A home equity line of credit (HELOC) is an open credit line that is secured by your home’s value. HELOCs have adjustable interest rates and have a “draw” period in which you can access the funds, usually about 10 years. The benefit of a HELOC is that once you have been approved, you can spend the funds however you choose, including to pay down your high-interest loans.
HELOCs help you stick to a budget – instead of walking out with a large amount of cash, you’ll have access to your credit line as needed and have a fixed amount as your maximum draw. You will withdraw money in the amount and at the time you need, while only paying interest on the amount withdrawn.
Wasatch Peaks offers cash-out refinancing on our mortgage loans to help you reach your financial goals. Our refinanced mortgage loans are powerful tools for people who take advantage of them. Not only are our interest rates always competitive, but in many cases, you may also qualify for tax benefits.
Utilizing a cash-out refinance can help you pay off your loan faster, while also providing you with cash out to help you catch up on your debts.
Take the time to list all your debts: credit cards, student loans, mortgage, home equity line of credit, auto loans, personal loans — everything. Put it all in a spreadsheet along with columns for monthly payments, interest rates, and total amounts owed. Call our Pleasant View Branch at 801-476-6304 and speak with a representative to see how we can help you start paying off your debt!