Debt in any form is a sword that hangs continuously on the debtor’s neck. So as to secure the collateral against being taken over the creditor, it is very important that the debtor starts taking steps to reduce mortgage debt as soon as possible. The easiest way to do this is to increase monthly payments while keeping maximum amount for other expenses as well. This will ensure that the mortgage amount is paid back to the creditor in minimum possible time.
One may consider increasing the payment frequency such as from monthly to fortnightly. This will ensure that the mortgage loan is paid back pretty quickly. Another option is to go for refinancing. Such a loan has a lower interest rate and requires lower monthly payments. This means the debtors may have plenty of surplus money to be spent on other stuff. Such a mortgage loan debt can also help in payment of other debts such as unsecured loans and credit card debts.
It is a good idea to reduce the loan tenure so as to reduce mortgage rate. For example, if a debtor has availed a loan under 30 year loan scheme. The interest rate can be reduced by a great amount by reducing the interval to 15 or 10 years. At the same time, the debtors can eliminate or reduce mortgage insurance to cut corners and save thousands of dollars every year. This money can be used for paying back the mortgage loan, other debts or for saving purpose.
No comments:
Post a Comment