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Financial Health in 2013

Financial fitness starts with a plan and the discipline to stick to it!

I did a mortgage application last night paying off a first and second mortgage as well as saving the client’s $595 per month. They also wanted to pay off some credit card debt which would have added mortgage insurance to the transaction, so I advised them against doing that.

I recommended that they take the savings each month and pay off the smallest credit cards first. Once the smallest card was paid off, then add the money that would have gone to that card and add it to the $595 and then pay off the next card and keep that process going until all cards are paid off.  

Once you start a plan like this, you need to be extremely discipline, if not it is easy to fall back into bad credit card habits.

This is a great article with tips to start the new year in the right direction!

7 Tips for Keeping Your Financial Fitness Resolution

By: Rick Rogers

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

DonnaR January 05, 2013 at 10:26 PM
Good for you Joe in giving that advice to your clients. It is not the quick and easy way out, but sound advice.
MrsSmithWatchingWashington January 05, 2013 at 10:55 PM
I recommend paying off cards in order of highest APR to lowest, to save on interest costs. If you need an encouraging mental boost, follow Joe's advice, as paying off even the smallest card will feel like an achievement!
Kristin Ingram January 06, 2013 at 04:27 AM
I used the snowball method described above. Worked out very well. You don't save very much in interest paying off the highest APR first. Make sure to call all credit card companies on a regular basis (every 6 months or so) to ask for a rate reduction.
Scott Wheeler January 06, 2013 at 05:00 AM
Damn that is some dept your client has! How did it get so deep????

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