Tag Archive for: smart with debt

What is a HELOC?

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Today we are going to answer the question “what is a HELOC” and help you to determine if it’s the best choice for you. A HELOC, or Home Equity Line of Credit, is like a credit card backed by your home’s value. It’s a flexible way to borrow money when you need it. Instead of taking out a lump sum like a regular loan, a HELOC gives you access to a set amount of money, and you only pay interest on what you use.

Think of it like this: If your home is worth $300,000 and you owe $200,000 on your mortgage, you might have $100,000 in equity. A HELOC lets you tap into that equity, often up to 80% or 90% of the value, depending on your lender.

For example, let’s say you’re approved for a $50,000 HELOC. You can borrow $10,000 for a kitchen remodel now and $5,000 for a vacation later. You only pay interest on the $15,000 you’ve used, not the whole $50,000.

HELOCs can be a game-changer for home improvements, debt consolidation, or even investing in opportunities. But they do come with risks, since your home is collateral, it’s important to borrow wisely.

A HELOC gives you financial flexibility. It’s a tool you can use when you need it, but it’s key to use it responsibly. 

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Is a home equity line of credit right for you? Contact us today to find out more, as well as other ways to use debt to your advantage.

Free Tools For You! 

We also have free tools available! HELOC payment calculator to see which 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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Making Financial Changes Now Can Prepare you for Retirement Later

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Today we are going to discuss how making financial changes now can prepare you for retirement. Retirement might feel far away, but the steps you take today can shape the life you’ll live tomorrow. Think of it like planting a tree. The earlier you start, the more time it has to grow strong and provide shade when you need it most.

Small changes can make a big difference. For example, skipping one takeout meal a week and putting that money into a savings account can grow over time. If you save $20 a week, that’s over $1,000 a year! With interest, it becomes even more.

Another idea is to review your debts. Paying off high-interest loans faster can free up money to save or invest. For instance, paying an extra $50 on your credit card bill each month could save you hundreds in interest over the years.

Lastly, think about where your money is going. Can you cut back on unused subscriptions or shop smarter? Redirecting that money into a retirement account or investment fund can set you up for the future.

Every small step adds up. The sooner you start, the more you’ll thank yourself when it’s time to relax and enjoy your retirement. What will your first step be?

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Do you want to find out more about making financial changes now? Contact us today to learn some tips that can help you to achieve your goal quickly and easily!  

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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Is a Cash-Out Refi the best choice?

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Today we are going to answer the question, “is a cash-out refi the best choice?” Thinking about tapping into your home’s equity? A cash-out refinance could be the answer. It’s a way to access the money you’ve built up in your home by replacing your current mortgage with a new one for more than you owe. The difference comes to you as cash. Keep in mind that interest rates should be first and foremost in your mind when making this move. While a cash-out refi is great for some, it can greatly impact others in the long run.

Is it the right move? That depends on your goals.

For example, let’s say Sarah has $200,000 in equity in her home. She decides to refinance and pull out $50,000. With the extra cash, she pays off high-interest credit card debt and starts a home renovation. Her new loan payment is manageable, and she’s saving on interest every month. For Sarah, it’s a win.

Now take John. He’s also sitting on equity and thinking about a cash-out refi to buy a boat. While it might sound like fun, the added loan balance and monthly payments could leave him stretched.

The key is to look at how the extra cash will improve your finances—or not. A cash-out refi can be a great tool for paying off debt, investing, or handling emergencies. But it’s not the best fit for everyone.

Before making the leap, think about how it fits into your bigger financial picture. Want to know more? Keep reading to see if this option could work for you!

Contact Us Today! 

Is a cash out refinance the best choice? Contact us today to find out more about cash out refinances, as well as other ways to use debt to your advantage.

Free Tools For You! 

We also have free tools available! Download our Cash Out Refi vs Home Equity Loan Calculator to see which 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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HELOC: How to Get the BEST Interest Rate

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Today we are going to discuss how to get the best HELOC rate. A HELOC, or home equity line of credit, is an excellent tool that you can use to pay off debt or fix up your property. Here at Smart With Debt we want to show you how to get the best interest rate for your HELOC in order to keep more money in your wallet. Let’s go through it step by step.

Step 1: Find out the Index

First and foremost, what is the index? The index is your starting point for your HELOC rate. This base number is the same for everyone. For example, you could have an index of 8.5%. Be aware, this will go up and down because it fluctuates with the market. 

Step 2: Find out the Margin

What is the margin? The margin is the profit that is added to the index. For example, you could have a margin of 0% to 6%, because each lender charges a different margin.  As a result, rates vary per person because it depends on where you get your HELOC. 

Calculating your HELOC rate

Here’s another way to think of it. Think of it like a gas station. Each station pays the same price for the fuel (aka the index). However, each station charges a different profit (aka the margin). The index plus the margin equals the HELOC rate! 

Step 3: Shop around

It is imperative that you shop around in order to find the best HELOC rate for your wallet. By doing a side by side comparison, you can easily see which lender has the best HELOC. Get started with a free HELOC shopping card today! 

We want to help you!

Finding the best HELOC rate can seem daunting! Don’t let the numbers get the best of you and your wallet. Contact us today to discuss whether or not a HELOC is right for you. Most importantly, download our free HELOC shopping card to compare lenders side by side!

Watch our most recent explainer to find out more about: HELOC: How to Get the BEST Interest Rate

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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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