From Debt Stress to Financial Peace: Start Taking Control Today

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Today we are going to discuss how you can move from debt stress to financial peace! Debt doesn’t just cost you money, it also steals your peace. If you feel like you’re always behind, dragging debt around like a heavy load, you’re not alone. However, here’s the good news: you can fix it, and you don’t need a fancy budget or a financial degree to get started.

Let’s walk through how to spot the drag, lower your costs, as well as start moving forward, faster.

What’s Dragging You Down?

Are you battling friction in your finances?

Here’s what that might look like:

  • Paying 24% or more on credit cards while someone else is paying 0%

  • Getting denied for better rates because your credit score is too low

  • Using the wrong kind of loan for the type of debt you have

  • Refinancing the wrong way, adding bad debt to your home loan

All of these things slow you down. You’re doing the same work as your neighbor, but it feels like you’re pulling a parachute while they’re gliding.

Why You’re Paying Too Much

Let’s break down four common mistakes:

First, Carrying High-Interest Credit Card Debt

Many people carry balances at 24% or even 30% interest. But your neighbor might be using a 0% credit card for 18 months or more. That’s money in their pocket, not the bank’s.

Second, A Low Credit Score

A 620 score might get you denied. A 740 score could unlock better terms. Same income. Same effort. But very different results.

Third, Ignoring Home Equity

Instead of paying 24% interest, you could use a home equity loan at 6%. That alone could save hundreds a month.

Finally, Refinancing Instead of Restructuring

Too many people do a full refinance and roll credit card debt into their mortgage. Instead, a simple home equity loan or HELOC could save thousands—without resetting the clock on your mortgage.

Real Example: You vs. Your Neighbor

Let’s say you both have $20,000 in credit card debt.

  • You are paying 24% interest. That’s about $400/month in interest alone.

  • Your neighbor uses a 6% home equity loan. That’s only $100/month.

That’s a $300 monthly difference or $3,600 a year. Imagine putting that into:

  • Family trips

  • Groceries

  • Date nights

  • Paying off debt faster

Your neighbor isn’t richer, they’re just dragging less. That’s the power of moving From Debt Stress to Financial Peace: Start Taking Control Today.

How to Reduce the Drag

You can make progress in just three simple steps:

Step 1: Know Your Interest Rates

Make a list of your credit cards, loans, and debts. Find out what interest rates you’re paying.

Step 2: Find a Better Option

Look into:

  • 0% balance transfer cards

  • Home equity loans or HELOCs

  • Low-interest personal loans

  • Credit from family or friends

The goal? Pay less in interest and keep more of your money.

Step 3: Fix Your Credit

To get better terms, raise your credit score. You can:

  • Pay down balances before the due date

  • Dispute old or incorrect items

  • Ask a family member to add you as an authorized user on a credit card

Even small changes can bring big results.

From Debt Stress to Financial Peace: Start Taking Control Today

Debt is part of life, but how you carry it makes all the difference. By switching from high-cost to low-cost debt, you get more freedom, more fun, and more money to enjoy.

No more giving your extra cash to banks.
No more feeling stuck.
Just smart choices and better credit.

Remember, the tools are out there, Smart with Debt has free calculators as well as resources to help. You don’t need to change everything overnight. Just start small, and start now.

Because it’s time to go From Debt Stress to Financial Peace: Start Taking Control Today.

Watch our most recent video to find out more! https://youtu.be/zJzTnnfgPgw 

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Is a HELOC More Dangerous Than a Credit Card?

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When it comes to borrowing money, many people wonder:
Is a HELOC more dangerous than a credit card?

The answer?
Yes… and no.

Let’s break it down using real examples so you can decide what’s right for your situation.

How HELOCs Are Less Risky Than Credit Cards

Let’s start with interest. That’s the big one.

  • Most credit cards charge around 24% interest.

  • A HELOC (Home Equity Line of Credit) is closer to 8%.

So, if you owe $10,000…

  • A credit card might cost you $2,400/year in interest.

  • A HELOC? Just $800/year.

That’s a difference of $1,600 — and that money stays in your pocket instead of going to the banks.

That’s a huge win for your budget.

Lower monthly payments mean less stress and fewer risks of falling behind. You’re also not paying extra just to carry the debt.

How HELOCs Are More Risky Than Credit Cards

Now let’s talk about the risk.

A HELOC is a mortgage. That means it’s tied to your house. If something goes wrong and you miss payments:

  • It affects your credit more than a credit card would.

  • You could even face foreclosure.

That’s a big deal.

You’re giving up equity in your home and putting your property on the line. This is why you should only use a HELOC if you know where your repayment will come from.

If lowering your interest helps you get ahead, great.
But if you’re falling behind already, a HELOC might only delay the problem.

What About a Refinance Instead?

If you’re thinking about using your home to consolidate debt, a HELOC is usually a smarter option than a full refinance.

Here’s why:

  • Refinances roll your entire mortgage into the new loan.

  • If your current mortgage is at 3%, why bump the whole thing to 6% or 7%?

  • A HELOC lets you borrow just what you need, at a lower cost (sometimes as little as $500 vs. $5,000+ for a refinance).

Plus, most HELOCs let you borrow up to 80–85% of your home’s value.

So, Is a HELOC More Dangerous?

Only if you’re not careful.

✅ If you need to lower your payments and have a plan:
A HELOC can save you thousands and reduce financial stress.

⚠️ But if you’re struggling to make payments already:
Tying that debt to your house could make things worse.

Download Free Tools

Want to see the real numbers for yourself?

📥 Download our free tools at Smart with Debt:

  • Credit Cards vs HELOCs

  • Refinance vs HELOCs

These side-by-side comparisons show how much you could save — or risk — based on your situation.

Make your debt work for you, not against you. Contact us today to find out more.
That’s what being Smart with Debt is all about.

Watch our most recent video: “Is a HELOC More Dangerous Than a Credit Card?”

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HELOC Rates: Where Are They Now and Where Are They Going?

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Today we are going to discuss HELOC Rates: Where are they now and where are they going? HELOC rates have been shifting, and if you’re thinking about tapping into your home’s equity, now is the time to understand where they stand. Over the past year, rates have dropped, and many experts predict they will continue to go down. But should you wait, or is now the right time to get a HELOC? In this guide, we’ll break down where rates have been, where they are now, and what you can expect in the coming months.

Where Have HELOC Rates Been?

Over the last 12 months, HELOC rates have been on a slow but steady decline. The prime rate, which HELOCs are based on, has dropped to 7.5%. This means that if you qualify for a good HELOC, your interest rate should be around 7-8%.

Where Are HELOC Rates Now?

Right now, the average HELOC rate sits around 7.5% to 8%, depending on the lender and your credit profile. Here’s how HELOCs compare to other types of debt:

  • HELOCs: Around 7.5% – 8%
  • Credit Cards: Around 24% – 29%
  • Home Improvement Store Cards: Over 29%

For those looking to consolidate debt, a HELOC is currently about one-third the cost of credit card interest.

Where Are HELOC Rates Going?

Most experts expect rates to continue decreasing over the next 12-24 months. If the Federal Reserve lowers its rates, the prime rate will drop too. Since HELOCs are tied to the prime rate, your interest rate will go down automatically.

Should You Wait for Rates to Drop?

No! If you need a HELOC now, don’t wait. Here’s why:

  • HELOC rates adjust downward when rates drop, so you benefit automatically.
  • The money saved from consolidating high-interest debt now outweighs any small rate decrease in the future.
  • HELOCs are cheap and easy to refinance, so you can switch to a better rate later if needed.

HELOC vs. Cash-Out Refinance: Which is Better?

For most people, a HELOC is a better option than refinancing their mortgage. Here’s why:

  • HELOCs keep your low mortgage rate intact. A cash-out refi could mean going from a 3-4% mortgage rate to 6-7%.
  • HELOCs only apply to what you borrow. You don’t pay interest on unused funds.
  • Cash-out refinances combine your good mortgage debt with bad debt. This increases your overall interest costs.

How to Find the Best HELOC Rates

Not all HELOCs are priced the same. Every lender adds a margin to the prime rate, which affects your final interest rate. To get the best deal:

  • Shop around. Credit unions and regional banks often have the lowest margins.
  • Look for a margin of 0% or lower. Some lenders offer negative margins, meaning your rate could be below prime.
  • Avoid high closing costs. Most HELOCs cost $200-$500, but some lenders charge thousands.

HELOCs Are Great for More Than Just Debt Consolidation

While many use HELOCs to pay off high-interest debt, they’re also useful for:

  • Home improvements – Increase your home’s value or make it more comfortable.
  • Cash flow management – Use it to cover short-term expenses and pay it back quickly.
  • Unexpected expenses – Keep funds available for emergencies.

Don’t Wait – Take Advantage of HELOC Savings Now

If you have high-interest debt, waiting to get a HELOC could cost you hundreds per month in extra interest. Since HELOCs are easy to refinance, there’s no reason to delay. Lock in a lower rate now and benefit even more if rates drop later.

Use our HELOC Shopping Guide (link below) to compare lenders and find the best rate for your needs.

Have Questions?

Leave a comment or reach out, we’re happy to help! Contact us today to find out more!

Watch our most recent video to find out more about HELOC Rates: Where are they now and where are they going?

 

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Finding the Right Credit Card for You

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Today we are going to discuss how finding the right credit card for you can make a big difference in the long run. Picking the perfect credit card can feel like searching for a needle in a haystack. But don’t worry, it’s easier than you think when you know what to look for. The right card depends on how you spend, your goals, and what perks make sense for your lifestyle.

For example, if you’re a frequent traveler, a card with travel rewards could help you save on flights and hotels. Imagine earning enough points to cover a weekend getaway, just by paying for your everyday purchases!

Or maybe you’re looking to pay off a balance faster. In that case, a card with 0% introductory interest might be your best bet. That way, more of your money goes toward your debt instead of interest.

Each card has its pros and cons, so it’s worth comparing options. Ask yourself: Do I want cash back, travel perks, or a tool to build my credit?

Finding the right card isn’t just about rewards, it’s about matching your needs. With a little research, you’ll be on your way to better benefits and smarter spending.

Contact Us Today! 

Do you have “good debt” or “bad debt” in your life? Contact us today to find out more about how to turn your debt into your friend instead of your enemy! 

Free Tools For You! 

We also have free tools available! Accelerate Debt Payments Calculator to see which debt option is best for you! 

Learn more!

Visit our YouTube channel to learn more about using debt instead of letting debt use you!

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The Biggest Mistake I Made with My Debt in 2024

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Today we are going to discuss the biggest mistake I made with my debt in 2024. Even the most careful people can miss something small. That’s what happened to me this year. I thought I had everything under control, however one mistake cost me over $2,000 in extra interest. The good news? I learned a simple fix that anyone can use to save money and take back control of their debt.

Let’s break it down so you can avoid making the same mistake I did.

What Happened: Ignoring the Numbers

At the start of the year, I had a small mortgage of $55,000. It was an adjustable-rate mortgage at 8.125%, and I didn’t want to refinance because the balance was small. I also had a HELOC (Home Equity Line of Credit) with a fixed rate of 3.99%.

Here’s where I went wrong: I didn’t move the mortgage balance to my HELOC. At the time, it didn’t seem like a big deal, however over the year, I ended up paying over $2,200 in extra interest. That’s money I could have used for:

  • A family vacation
  • Christmas gifts
  • Paying off debt even faster

One quick switch could have saved me hundreds every month.

A Simple Fix: Move Debt Down to Lower Rates

This mistake got me thinking about other types of debt, like credit cards. Many people carry balances on credit cards with rates as high as 24% or even 29%. But you don’t have to keep paying those high rates.

Instead, look for ways to move your debt down to lower interest rates. Here are some options:

First, Personal Lines of Credit

  • Offered by banks and credit unions
  • Often between 10% to 13% interest

Second, Home Equity Loans

  • Fixed or adjustable rates
  • As low as 5% to 7%

Finally, 0% Credit Cards

  • Promotional offers (usually 12-18 months)
  • Watch out for transfer fees (around 4%)

Real Example: Saving $200+ a Month

Let’s say someone has $25,000 in credit card debt at 24% interest. Here’s how much they pay each month in interest:

  • Credit Card (24%): $500/month
  • Personal Line of Credit (13%): $281/month
  • Home Equity Loan (7%): $146/month
  • 0% Card (with a 4% fee): $0/month (after the transfer)

By moving the debt to a personal line of credit, they save over $200/month. Over a year, that’s $2,600 in savings! If they move to a 0% card, they save $6,000.

Why This Matters

Debt can weigh you down, but small changes can give you more money to:

  • Enjoy life (take that vacation!)
  • Save for the future
  • Pay off debt faster

Every dollar saved on interest is a dollar you can use to improve your life.

The Lesson: Check Your Debt Often

The biggest mistake I made in 2024 was not paying attention. Even a small mortgage or a small credit card balance can cost you thousands if you don’t move it to a lower rate.

Here’s what I recommend:

First, Review your debt every few months.

Second, Find better options: Look for lower rates, personal loans, HELOCs, or 0% cards.

Third, Make the switch: Don’t wait! The sooner you act, the more you save.

Be Smart with Your Debt

Debt isn’t the enemy. When you use it wisely, it can not only help you save money, but  to enjoy life more. But you have to take control. Don’t let the banks keep your hard-earned cash.

If you want help finding better options, check out our free tools at SmartWithDebt.com. We have calculators and guides to show you how much you can save.

Don’t wait like I did. Learn from my mistake and start saving now. Here’s to a smarter, debt-free 2025!

Watch our most recent video today to learn more about: The Biggest Mistake I Made with My Debt in 2024

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