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Playing good defense and not squandering one's hard earned salary is as important as earning it was to begin with. If your goal is to create true wealth, and not just a lifestyle of conspicuous consumption and debt, then saving money and reducing debt is important to you.
There are about 689 million credit cards in the United States, and for many people, those cards are about to get much more expensive to pay each month.
A New government regulation is requiring credit card issuers to increase your monthly credit card minimum payment. For some people, that payment could be doubled.An estimated 45 million USA credit card holders, nearly a quarter of the total, choose to pay just the minimum payment on their cards each month, according to CardWeb.com. These higher minimum payments could translate into big increases in payments for consumers carrying hefty balances.
For example, with a balance of $10,000 at an 18 percent, increasing the minimum from 2 percent to 4 percent would double the monthly minimum payment from $200 to $400.
Likewise, a $20,000 balance would require an $800 payment!
But higher minimum payments also reduce balances faster, saving consumers money on interest rates.
That $10,000 balance would require about 58 years to pay off and cost $28,930.64 in interest at the 2 percent minimum payment rate, while at the 4 percent rate, it'll take about 15 years and cost $5,915.67 in interest, according to Bankrate.com's calculator.
If ever there was a time to get out of credit card debt, it's now!
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30 Year Mortgage Rates drop to 5.7%, 15 Year Rates drop to 5%!
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WEEKLY OR BI-WEEKLY PAYMENTS?
What the Experts are Saying! Your mortgage is costing you $50,000 to $100,000 more in unnecessary interest payments. You can pay off your mortgage 10-15 years early! Here's How... By converting your monthly payments on your current mortgage to a Split-Mortgage payment schedule or by refinancing and going to a weekly or bi-weekly payment. (These articles date back and despite enough publicity, most people have not taken the time to investigate these true savings.)
"When prepaid on a bi-weekly schedule, a $70,000 mortgage at 10.5% annual interest produces a savings of $60,000 compared with a standard 30-year payback." - Wall Street Journal, January 18, 1989
"If you have a $100,000 bi-weekly mortgage instead of a regular 30 yr mortgage at 10.5 percent interest, you could save nearly $86,000 in interest over the life of the loan."- Consumer Reports, June 1988
"The result on a $100,000, 30-year mortgage at 10%,is that you can burn your mortgage in just under 21 years and save $78,359 in interest." - Money, April 1988
Those in the media and financial community are unanimous in their support of the bi-weekly prepayment program. Here are some other examples I found. Although the interest rates are higher than they are currently, the basic math and strategies to reduce your outstanding "debt" are still valid. Examples of dramatic savings you can achieve by using this formula.
"Wow! What a great system you have developed. I am currently building a
house and I have a local lender working on a mortgage for me, but will use
your system to get a better rate. Thanks for your help, again I'd like to say
what a great system.... I have already started telling people I know around the
country."J. Arroyo, Sr. - Orlando, FL
Why Refinance your Mortgage
?
1. On a loan of $125,000 at 11% for 30 years, by prepaying a mere $25 monthly, save $47,538 in interest costs. Few if any investment gives you such a fantastic return for such a small outlay. What's more, you'll own your home free and clear almost 4 yrs sooner and you keep the $47,538 in your own bank.
2. If you borrow $100,000 over 30 years at 10.5% you will wind up paying $329,306 by the end of the loan. That's $229,306 more than you borrowed! This same mortgage you will pay off in only 21 years 10 months. by using weekly payments. (savings of $82,093 in Interest alone)!
3. A 30 year fixed rate mortgage at 9.5% would cost you $202,708 in interest ofer the life of the loan. On a bi-weekly payment, you will shorten the life of the loan by 8 and a half years and only pay $132,931 in interest with savings of $69,777 in interest costs.
4. Example Using a $100,000 Loan At 8.5% Standard 30 Year Loan Current payment PITI $1000 Total Interest $176,811 $500 Bi-Weekly** Paid off in 21.2 Years Total Interest Paid $115,784 You Save $61,027
5. On a 30-year, $100,000 loan at 8.875%, you pay $186,432 in interest. A bi-weekly payment plan saves you 24%, or $69,395!
receive the Lowest Mortgage Rates Online!
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