How To Pay Down Your Debt For Better Financial Health

You can reach financial success but you need to manage your debt wisely. Be ready to tackle some tough choices and trade-offs if you are aiming to grow and accumulate wealth.

To strengthen your financial health, you need to plan when borrowing and know how to pay down your debt wisely.

You will likely accumulate debt in your life but you need a plan to pay off the debt so you aren’t carrying a burden you cannot handle.

Borrowing is not always a bad thing especially for good reasons like for your college education, furthering your career, or buying your home.

Pay Down Your Debt On Time

Plan to get the more attractive federal loans before seeking loans from private banks. Apply for scholarships, grants, and work-study programs. Most importantly, make sure you and your children understand how to repay your obligations on time.

Before actively looking to buy a home, make sure to check your credit reports first to see what kind of financial shape you are in. Make sure it becomes a regular part of your life to habitually check your credit reports and score.

Buying A Home

Here is your breakdown for your 15-year mortgage: 1. Monthly principal and interest costs: $4,544 and total year’s costs are $54,528, excluding down payment.

Consider 15 year fixed mortgages vs. 30 year fixed mortgages

2. Your home’s total costs with a 15-year mortgage are $977,898. 3. This includes the $160,000 down payment, $640,000 you borrowed, and $177, 898 in interest payments over the course of 15 years.

1. Monthly principal and interest costs of $3,092 and total year’s costs are $37,104, excluding down payment. 2. Your home’s total costs with a 30-year mortgage are $1,273,289.

Here is the breakdown for your 30-year mortgage:

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