Tag Archive for: credit card

Enjoy Life More With Better, Cheaper, Smarter Debt

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Today we are going to discuss how you can enjoy life more with smarter debt! Clarity Comes First. Confidence Follows.

Let’s be honest.

Most of us carry more debt through life than savings or retirement. In fact, for many people, debt stays with them longer than any investment account ever will.

So, because debt will be part of life anyway, why not enjoy it instead of stressing over it?

That starts with clarity.
And then, confidence follows.

Debt Isn’t the Problem. Confusion Is.

Debt itself isn’t bad.
However, not understanding how debt works causes stress.

Because of that confusion, one person can live next door to someone else and pay one-third less for the same exact debt.

For example:

  • One person with $10,000 in debt pays about $75 per month

  • Meanwhile, their neighbor pays $300 per month

  • Same debt

  • Very different outcome

So, the difference isn’t effort.
Instead, the difference is simple math and better choices.

Smarter Debt = Paying Less

Being smart with debt means two things:

  • First, you pay less every month

  • Second, you pay less over the life of the loan

As a result, you keep more money in your life.

Not later.
Not someday.
But right now.

Because when you pay less, you don’t need a second job.
Instead, you simply manage debt better.

Why This Matters in Real Life

Let’s look at the bigger picture.

According to the Federal Reserve:

  • The median retirement savings is about $87,000

  • The average retirement savings is about $334,000, mostly due to high earners

  • Meanwhile, the average non-retirement savings is about $62,000

  • And many people have closer to $8,000

So, clearly, savings alone won’t fix the problem.

However, here’s the good news.

Most people could double or triple that gap simply by paying less for debt.

No extra hours.
No side hustles.
Just smarter math.

A Simple Credit Example That Changes Everything

Now let’s walk through a real-world example.

Over 30 years, someone:

  • Owns a $450,000 home

  • Buys six vehicles

  • Carries one $6,500 credit card

That’s it.

Now compare three people:

  • One manages credit well

  • One manages it okay

  • One doesn’t manage it at all

The monthly difference between them?

About $300 per month, every month, for 30 years.

That equals $110,000 in real cash.

And when you add a reasonable 6% interest return, that money grows to about $352,000.

That money didn’t need to go to the bank.

When Debt Is Managed Poorly, It Gets Worse

If credit stays unmanaged or poor, the gap grows fast.

In that case:

  • The extra cost becomes $900 to $1,000 per month

  • Over time, that’s $332,000 in hard cash

  • With interest, it crosses seven figures

So, instead of building a better life, that money builds bank buildings.

That’s the problem.

The Goal Isn’t No Debt. The Goal Is Better Debt.

Many people think the goal is to eliminate debt.

However, that’s not always realistic.

Instead, the real goal is this:

  • Pay the least amount possible

  • Keep more money in your life

  • Reduce stress

  • Enjoy life more

That extra money can go toward:

  • Paying debt down faster

  • Traveling

  • Going out to dinner

  • Simply breathing easier

Because life feels better when money flows toward you, not away from you.

Why People Pay Different Amounts for the Same Debt

1. They Don’t Know Where to Shop

First of all, where you shop matters.

Banks and large credit unions price debt very differently.

In most cases:

  • Large credit unions offer lower rates

  • They also offer lower costs

  • And better long-term value

So, shopping smarter saves money immediately.

2. They Don’t Make Themselves Look Good

Next, credit score matters.

When your score goes up:

  • Rates go down

  • Terms improve

  • Lifetime costs drop

And when you pay less, you enjoy more.

So, understanding your credit score is one of the fastest ways to bring more money into your life.

3. They Avoid the Simple Math

Finally, many people would rather work overtime than spend 10 minutes understanding debt.

That doesn’t make sense.

Because debt math is simple:

  • Add up what you pay each month

  • Add up what you pay over the life of the loan

Then aim to pay the least.

That effort takes less time than a second job and pays far more.

Clarity → Confidence → Certainty

Once you get clear, everything changes.

Because:

  • Clarity leads to confidence

  • Confidence leads to certainty

  • Certainty leads to better decisions

And better decisions lead to more money in your life.

Not perfection.
Not magic.
Just progress.

This Works for All Debt

This applies to:

  • Credit cards

  • Student loans

  • HELOCs

  • Mortgages

  • Car loans

In every case, the rule stays the same:

Pay the least you can.

Use their money.
Don’t let it use you.

The Smart With Debt Checklist

Here’s the simple checklist we use:

  1. Know your numbers
    Know what you pay monthly and over time.

  2. Know your options
    Understand what choices exist.

  3. Know where to shop
    Large credit unions often win here.

  4. Look your best
    A better credit score brings instant savings.

  5. Review regularly
    Minutes per month can change everything.

Because debt isn’t a burden.
Instead, it’s a tool.

Enjoy Life More by Paying Less

Debt doesn’t have to feel heavy.
It doesn’t have to feel scary.

When you manage it well, debt simply becomes part of life—a cheaper part.

So, flip the script.

Pay less.
Stress less.
Enjoy more.

The banks will be fine.
Now it’s time for you to be better off too.

Watch our most recent video to find out more about: Enjoy Life More With Better, Cheaper, Smarter Debt

Contact us today to find out more! 

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Don’t Use Snowball or Avalanche Until You Do THIS!

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Don’t use the snowball or avalanche until you do this! If you’ve been trying to pay off debt but keep stumbling, this is for you. The truth is, most people start in the wrong place.

They try to pay off debt before they fix it.
That’s like trying to run a marathon with a backpack full of bricks. It’s way harder than it needs to be. Most people give up before they ever hit the finish line.

Before you dive into Snowball or Avalanche, do this one thing first. reposition or consolidate your debt.
This simple move can make your plan easier, faster, and even more motivating.

1. Win First and Create Momentum

Debt is heavy, emotionally, mentally, and financially.
Trying to chip away at high-cost debt one piece at a time wears you down.

That’s why rearranging or consolidating gives you that first win.
It’s like taking the leaves out of a gutter, once you clear the junk, things start flowing again.

That first little win gives you relief. And that relief turns into momentum.
Momentum brings motivation.
Motivation brings progress.
And progress keeps you in the game.

The longer you stay in the game, the better your chance to win.

Let’s be clear, this isn’t about taking on new debt. It’s about moving your debt into better, lower-cost debt so you can finally take control.

2. Simplify Life

Life is already full,  family, work, and everything else.
The last thing you need is to manage 10 or 20 different payments.

When are they due?
What’s the minimum?
Did I miss something?

Consolidating your debt simplifies life.
Now you’re down to one payment, one that’s easier to manage.

And when life gets simpler, it becomes sustainable.
If you can stick with it, you’ll bring more money into your life, and keep less in the bank’s vault.
You deserve to keep more of your money working for you.

3. Pay Less and Save More

This part is all about math.

When you consolidate, you often move from high-interest debt, like 18%, 24%, or even 30%, into something smarter.
That could be a home equity loan, a personal loan, a 0% credit card, or even a private loan from a friend or family member.

That’s like trading a gas-guzzling truck for a hybrid.
Even if you don’t lower the balance, you lower your interest, and that puts more money back into your life.

Here’s a quick example from the numbers:
If you have $10,000 in credit card debt at 24%, that’s about $2,400 a year in interest.
If you rearrange that into a personal loan at 10%, you save $1,400 a year.
That’s $1,400 you can use or enjoy instead of handing it to the bank.

4. Get Out of Debt Faster

When your interest rate drops, something magical happens.
You get more money and more mental freedom.
You finally see progress, and progress feels good.

If you keep your payments the same, more of that money goes toward paying down your debt.
You’re shrinking it faster, without working harder.

That’s the moment when things start to turn around.
You stop paying more and start working smarter.
And once you see your balance drop, confidence grows, and that confidence is priceless.

5. Enjoy More Options in Life

When you free up money, you create options.
More money means more choices.

Maybe it’s building an emergency fund,
helping your kids with activities,
taking a vacation,
starting to invest,
or paying down debt even faster.

Whatever you choose, it’s about creating more freedom.
Because when you’re not buried under high-cost debt, you stop reacting to money, and start directing it.

That’s how people go from struggling each month to being smart with their money.

Before You Start Snowball or Avalanche…

Let’s make this simple:
Before you start any debt payoff plan, rearrange your money first.

Get your first win.
Make life simpler.
Lower your costs.
Get out of debt faster.
And open up more options for your life.

Being smart with debt isn’t about being scared of it.
It’s about using it the right way, to build a better and freer future.

Take a few minutes today to run your numbers through our Accelerated Debt Payments Calculator 
See what repositioning can do for you.

It’s not about struggling to get out of debt, it’s about finding a smarter way to get there.

Be smart with your money, not scared of it. 

Watch our most recent video to find out more about: Don’t Use Snowball or Avalanche Until You Do THIS!

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How a HELOC Works

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Today we are going to discuss how a HELOC works. First and foremost, a Home Equity Line of Credit (HELOC) is like having a credit card tied to your house. Let’s break it down!

First, What is a HELOC?

To say it another way, a HELOC is a loan where your home acts as the collateral. Therefore, you borrow money against the equity you have built in your home.

Second, How Does It Work?

  1. Equity Check: First, you need equity in your home. To clarify, equity is the difference between what your home is worth and what you owe on your mortgage.
  2. Apply for a HELOC: You apply for a HELOC with a lender. They not only look at your home’s value, but your mortgage balance, and your credit score as well.
  3. Get Approved: Once approved, you get a credit limit. However, this is the maximum amount you can borrow.
  4. Draw Period: More importantly, you can borrow from your HELOC during the draw period, usually 5-10 years. During this time you only pay interest on what you borrow.
  5. Repayment Period: After the draw period, you enter the repayment period, usually 10-20 years. You pay back what you borrowed plus interest.

Third, Why Use a HELOC?

  • Flexibility: Borrow what you need, when you need it.
  • Lower Interest Rates: HELOCs often have lower interest rates than credit cards.
  • Tax Benefits: Interest may be tax-deductible.

Finally, Things to Remember

  • Variable Interest Rates: HELOCs usually have variable rates, which means they can go up or down.
  • Fees: There can be fees for setting up a HELOC, annual fees, and closing costs.
  • Risk: If you can’t pay back the HELOC, you risk losing your home.

HELOC vs. Home Equity Loan

  • HELOC: Works like a credit card with a limit you can borrow against.
  • Home Equity Loan: You get a lump sum of money and repay it over a fixed term.

Example

Imagine you have a home worth $200,000 and owe $100,000 on your mortgage. Your equity is $100,000. A lender might offer you a HELOC with a limit of $80,000. You can borrow against this limit as needed, pay it back, and borrow again.

Final Thoughts

A HELOC can be a great tool for homeowners needing extra funds. It offers both flexibility and lower rates, however, it’s important to understand the risks. Always read the fine print and consider talking to a financial advisor.

Contact Us Today!

Do you need help navigating your financial future? Contact us today!

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