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