Have a Better Life

Are you currently stressed about paying your bills?  Is your mortgage one of your largest bills, and you are concerned about not paying it and losing your house?  With interest rates being as low as they currently are, you may think about seeing if you can refinance your current mortgage.  Furthermore, you may want to even consolidate your debt into your mortgage, lock a low rate, and enjoy the reduced stress of being able to make ends meet.

There are many sites that offer mortgage comparison, but here are some key points to consider if you want to refinance to save money, consolidate debt, and be more stress free.

Reducing Your Mortgage Payment
One of the main reasons people refinance is to reduce their mortgage payment.  You can use a home loan calculator, and plug in today’s current low rates, to see what your new monthly payment will be.  Depending on your currently loan, you may see savings as high as 10-20% off your current monthly payment.

Having a lower monthly payment is a great way to reduce your current stress to make ends meet each month.

Debt Consolidation
If you have enough equity in your home, you may be able to refinance and take out some money to pay off your other debts.  This is essentially consolidating your debt into your mortgage.  However, this can make sense.  Owe $10,000 on a credit card at 18% interest?  You could add $10,000 to your 4.5% mortgage, save on interest, and even deduct the interest on your taxes each year.

Paying off the auxiliary debt, getting a lower interest rate, and having a lower total payment are all ways that can help lower your stress when it comes to paying your bills each month.

Final Considerations
Before you think about doing anything with your mortgage, you need to make sure that you meet these two criteria: you have equity in your home (you’re not underwater), and you have a good credit score.  If you don’t meet these criteria, it will be difficult to refinance and consolidate.   If you are in a good position, you should be able to lower your payments and lower your stress.

Guest Post

Every month, you surely receive promotional offers and monthly bills on your home mailbox. You may rave on the latest promos from retailers. But you surely are almost always ranting about your monthly bills, whether for utilities or insurance.

Nobody said paying up monthly obligations and balancing your household budget is easy, especially these days. When the times get tough, your logical measure would be to trim down or lower your regular household expenses. Doing so should never be an extreme sacrifice. Here are 10 ways on how you could reduce your monthly household bills.

1. Budgeting

Limit your spending on necessary items to just about 60% of your overall monthly income. This may mean exerting more effort on effective and logical budgeting. Carefully track your regular expenditures every month and try to adjust budget targets in every category. Your monthly expenses should not exceed your regular monthly income.

2. Electricity

According to the US Department of Energy, the average American household spends up to $250 or more annually just on standby power. Thus, you could save so much if you would always unplug appliances and devices that are not in use. Keeping your printer, television, or PC plugged in and on standby incurs small energy losses.

3. Telephone bills

Lower your telephone bills for both landline and cellphone. For landlines, switch to measured-use plans that may cost at least $10 each month for unlimited incoming calls and limited outgoing transactions. Use your mobile phone for emergencies and only if necessary. Switching to a prepaid mobile plan could help you save a lot as you may spend just about $20 each month on buying prepaid.

4. Groceries

Try to buy by bulk as doing so would help you save dollars. Also buy more when items are on sale. How about using discount coupons? Compare price tags on various supermarkets so you could determine where to find and get the best buys. Avoid frequent trips to the grocery, do your shopping list weekly or twice a month, and do not shop for your household supplies on an empty stomach.

5. Heating and cooling

Make your home weather-ready. Windows and exterior doors must be caulked so that air inside the house would not seep out when you are using your heater or air conditioner. Check your home insulation. It would be easier to keep a weather-tight home cooler or warmer during summer and winter, respectively.

6. Internet and cable

Have you already figured out that you could save a big amount of cash by bundling your Internet and cable television services? By doing so, you could possibly save up to $392 every year.

7. Water

Try to minimize your water bill as well. Be mindful of the way your household uses water every day. Do not leave the faucet running while you brush your teeth. Do your laundry weekly instead of daily. Repair leaky tanks and taps and fix running toilets. Try to take quick showers instead of lengthy showers.

8. Mortgage

Paying for your home loan is not actually part of essential spending for your household but since it is necessary to make payments, mortgages usually get into regular household expenditures. Do not stick to your minimum required payments; try to pay more than required each month so you could lower your principal and possibly shorten loan maturity. Remember, the longer your mortgage stays, the higher your interest payment becomes.

9. Home insurance

Seek discounts from your home insurance provider. If it remains costly, try to look around for cheaper policies from other insurers. Just be careful not to compromise the overall coverage and benefits.

10. Car insurance

Increase your excess charge (an amount you agree to shoulder before the insurance provider provides for claims). Doing so is a good way to lower your car insurance premiums.

Andrew has been working in the finance industry for several years, helping people with debt management and refinancing solutions.