Say Goodbye to Bad Debt
Just as there are good days and bad days, good eggs and bad egg, there are good debts and bad debts. Generally consumer debt – credit cards, store cards, lines of credit and sometimes auto loans are considered bad debt. You generally pay high interest rates, up to 35% on depreciating assets and it takes forever to chip away at the principle.
Mortgages, however, generally qualify as good debt. Interest rates are low, very low, these days and a property is an appreciating asset, making it a good investment. If you have equity in your home, you can turn bad debt into good debt. This in essence is debt management. By refinancing and rolling high-interest debt into your mortgage you can improve cash flow, focus on one payment and enjoy huge interest savings. If you would like to discuss your refinancing options, talk to a Time Home Loans professional.