christian debt

4 Tips to Make Mortgage Debt Reduction Easy

Your home mortgage is often the most significant debt most people have. To buy a home, taking out a mortgage is necessary, but have you thought about a mortgage debt reduction plan to pay it off quickly?

Mortgage debt reduction needs to be a long-term goal, but it doesn’t need to be difficult. In fact, there are several simple ways to reduce your mortgage quickly and cut down the loan term dramatically. You have the option of using one or a combination of any of the tips mentioned below as part of your mortgage debt reduction strategy.

Payment Frequency

When a bank calculates your mortgage repayments, they use a calculation known as ‘amortization.’ This allows them to work out how much you need to pay each month so that a portion of your payment goes towards paying down your balance and the other part of your debt is interest charged on your balance owing. They tell you how much you need to pay in monthly installments to pay off your loan over the exact loan term written on your mortgage contract.

However, if you’re paid bi-weekly or even weekly, you can adjust your repayments to the same frequency for which you get paid. This not only makes budgeting much more comfortable to pay a smaller portion each pay period, but it can also cut years off your loan term and save you thousands in interest.

Call your lender and ask them if you can adjust your payment frequency to bi-weekly but be sure you work out your own calculation amounts before you call.

Bi-Weekly Calculations

Find out exactly how much your minimum monthly payment will be and then divide it by two if you’re paid bi-weekly. If you’re paid weekly, then divide your monthly payment by four. Don’t use any fancy calculations or try to figure out how many weeks in a year and then divide by how many days. This won’t work. Simply divide your minimum monthly repayment by two for bi-weekly or divide by four if you’re paid weekly. Write this figure down. It’s your new minimum repayment. You’ll pay this new amount every time you’re paid.

More than Minimum

Once you have your new bi-weekly minimum repayment worked out, round this figure up to the nearest $5. For example, if your payment comes to $423.24, then round this up to $425. This small amount won’t break your budget, and you’ll find it easier to remember how much you need to pay.

Rounding up your repayments seems like such a small amount of money, yet it can save you tens of thousands of dollars in interest and reduce your loan term dramatically.

Lump Sum Reductions

Lenders calculate your interest repayments based on the balance you owe at the end of every day. Then they add up how much interest has accumulated and shown you a straightforward figure at the end of the month. By making more regular payments, such as weekly or bi-weekly payments, and then rounding up those amounts, you’re reducing the amount you owe on a more regular basis. This reduces the amount of interest the bank can charge you.

If you receive a pay raise or a tax refund or a bonus or if you earn some extra cash from a yard sale, pay it as a lump sum payment off your mortgage. This reduces your outstanding balance and lowers the amount of interest you’ll be charged. Mortgage debt reduction really is as simple as finding a plan and sticking to it.

We hope this information was beneficial. You can have anything you want if you are enthusiastic about putting in the time, effort and plans to get to your goals. Discover the secrets why the rich stay rich and the poor stay poor. Click Here to view a video with more life tips!

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Christian Debt Reduction May Well Bring You Relief

Christian debt reduction is fast becoming a concern within many Christian families. Monthly repayments on consumer debts account for a more significant percentage of disposable income than ever before. This can lead to some families suffering through financial difficulties as they try to keep up.

The stress of keeping up with payments on credit card bills, personal loans, medical bills, and other unsecured debts can often cause some Christian families to worry about their ability to save for the children’s education or pay off the family home.

There are some excellent Christian debt reduction options available, offering great choices to help you reduce your levels of unsecured debt. Reducing your balances on consumer debts can give you the financial freedom you’ve been seeking to work on those bigger financial goals.

There are Christian financial ministries and non-profit agencies willing to offer you solid financial advice to help you work through your financial difficulties and find ways to help free up your monthly income. After all, if you didn’t have to see the cash every month to make repayments on those credit card bills or personal loans, you’d have more of your own income left to put towards the family’s benefit.

Christian debt reduction options can include financial education, showing you how to realign your priorities and teach you how to get your current spending patterns back under your own control again. If your credit situation is a little more severe than counseling can correct, then you may want to consider consolidating some of your debts, which will reduce your monthly payments and help free up some of your monthly cash flow.

Debt consolidation is where you roll the balances of some outstanding unsecured debts into one convenient consolidation loan. In most cases, your new loan will have a much lower interest rate than the high-interest charges you’re paying on credit cards or store cards, so you should notice an instant reduction in the amount you’re required to pay each month. This alone could help you get your finances back under control.

Many Christians are initially embarrassed to ask for financial help. Never feel ashamed that you dare to work through a problem to find a better solution for you and your family. Everyone has moments in their lives where accidents happen, illnesses occur, and jobs aren’t as stable as you believed.

No matter how bad you might think your situation is, Christian debt reduction companies are able to help you find real solutions even if you have bad credit. The object of these companies is to work with solutions that suit your individual circumstances and needs.

If your financial situation is dire enough, then you may qualify for a debt settlement program. This is where a Christian debt reduction company may be able to negotiate with your creditors on your behalf to accept a reduced settlement figure as payment in full for your outstanding balances.

Christians should take a little time to research the options available to them regarding Christian debt reduction programs to be sure you’re receiving the right services to suit your individual situation.