Here is an article translated to English from the magazine “L’Actualité”. It proposes five reliable ways to rapidly reimburse your mortgage and other debts. The following solutions are of course extremely helpful in the case where you still have flexibility with your money. If your case is more serious, please contact us.
1. Accelerate your payments
If your mortgage allows you to pay additional payments, you may think of applying your annual incentive bonus, tax returns or any gifts in form of money to the payment of your capital. Even better, simply add payment dates to your own personal calendar and engage yourself in paying an additional mortgage payments these days. A solution as simple as paying every two weeks instead of every month will allow you to shorten your reimbursement period by many years.
2. Reimburse your debts first
Are you wondering whether you should put money aside or reimburse your mortgage? Here is what you need to know: if your mortgage is coupled with an interest rate of 5%, paying it off would equal a return of 5% on your money. Your income would be a lot more appreciated as well if you lower the balance of your credit card with a high interest rate. In most of the cases, you would obtain a guaranteed return of 19%.
3. Reduce your spending
Find different ways to lower your household budget and use the money saved to faster reimburse your mortgage and other debts. Start by cutting down on the luxury expenses. The few hundreds of dollars you will receive by saving on restaurant bills, clothes, haircuts, manicures sessions and travels will give you a good push towards lowering your level of debt.
4. Settle your high interest rate debts
If you have obtained a long-term debt accompanied by a high interest rate, such as a large balance on your credit card, your first priority should be reimbursing it. Think about getting a line of credit tied with a lower interest rate to pay off your high interest rate debt.
5. Demand a better rate
Call the credit card company that issued your card and negotiate a lower interest rate. Once you will have reimbursed the balance on your credit card, you may think about using these savings to do additional payments towards your mortgage.
