We all want to be DEBT-FREE, and here are some tips to help you do just that

We all know how hard it can be to manage our own finances.  Been there, done that!  I just didn’t know how, until someone showed me the way, and I’ve never looked back since that turning point. 

These tips may just help you find your way to being debt-free, if that’s your goal:

1)      Pay your bills when they’re due every month – this is so hard to do at times, but it’s so very important to not pay your bills late & rack up late fees and credit blemishes.

2)      Learn to live on less than you make – you must learn to put some money aside in order to have money in the bank.

3)      Think twice before whipping out that credit card – if you use credit, have a plan for paying off your balance(s).  It took me a LONG time to pay off my balances that I had built up, but I did, and I now pay my balance off every single month.

4)      Have a plan for where and what you’ll spend your money – you need to know how much you make and how much you need to live on.  You may need to make a change in your spending habits if you want to be debt-free.

5)      Set up a savings account for emergencies – 3 to 6 months’ of basic living expenses is what is recommended.  You never know when you’ll need to replace an appliance or when you might be out of work.  Start small and build this account up.

6)      Have financial goals – if you don’t have goals, you’ll never get where you want to be.  You should consider setting both short-term and long-term goals to help you achieve not only debt-free status, but those goals will also help you go forward toward building that nest-egg for your retirement.

7)      Learn how to make your money grow and work for you – take classes, read books and investing magazines, find a great financial planner – make your money earn more money!

I’ve walked in the same shoes as those looking to be debt-free – and I can very proudly say I am DEBT-FREE, except for my mortgage!  I pay my credit card balance off every month, I learned to live under my means, and I can tell you it’s a very satisfying feeling to know I have money in the bank.

Here’s to your success in achieving the same satisfying feelings!!

Ann Cummings
1-888-349-5678 x 3839

  Looking to do some home improvements and/or repairs?  

Most homeowners typically think the only ways to pay for home improvements and/or repairs is to either pay cash or to put those expenditures on their credit cards.  Those may not necessarily be the best way for you to pay for them!

Consider these options:

~~  Home Equity Loan - This is a second mortgage on your property that's secured by the equity you've acquired in your home.  The rates on a home equity loan might be a little higher than your first mortgage, but these rates are typically better than you'll end up with on your credit cards.  Another big reason to consider this route is that the interest you pay on a home equity loan may be tax deductible.  Interest paid on credit cards likely isn't.

~~ Home Equity Line of Credit - This is a variation of a home equity loan.  With this type of funding, you get a revolving line of credit which is secured by the equity in your home.  You can repay the amount you borrow, and then you can use it again and again as needed.  This type of funding is really useful when doing major improvements/repairs where you have to make multiple payments over a period of time to contractors as they complete specified stages of the work contracted for.  You'll typically have a variable interest rate on this type of loan.

~~ Cash-Out Refinancing - For this option, you refinance your existing mortgage into a new mortgage that is made up of your original mortgage plus whatever the amount is you want to pull out for your home improvements/repairs.  This option may allow you to obtain a lower interest rate, and the interest you pay is typically tax-deductible.
     An example of this is:  you have a $300,000 house with a mortgage on it of $150,000, and you would like to have $50,000 to do improvements, etc.  You would refinance your existing $150,000 mortgage plus the $50,000 for improvements, making your new mortgage amount $200,000.  You'll receive the $50,000 as a lump sum amount when you close on your new mortgage.

Make sure you choose the right project to spend your money on.  The right improvement can dramatically increase the value of your home, and those types of improvements that provide the highest return on your investment include remodeling kitchens, bathrooms, and second story additions.  Take care not to over-improve for your neighborhood, and remember that too much personalizing of your house likely won't appeal to too many mainstream buyers when it comes to resale value.

If you have questions about improvements that you're considering and how they'll impact potential resale value, feel free to contact me, either via phone or email.  I'll be happy to set up a time to meet with you.

Ann Cummings
Portsmouth New Hampshire
603-431-1111 x 3839