Do You Have Good Bills or Bad Bills?

What’s that you say…good versus bad bills? Aren’t all bills created equal?

Unfortunately, many people think the answer to the latter is yes.

I’m going to dispel that notion with a simple example. Let’s say you go into a store and find the “widget” you need for around $22.00, but next door you find the exact same thing for about 5 bucks. That’s a big difference in price and any sane person would obviously opt for the better deal. Right?

Well, if it’s so obvious, then why do smart homeowners plunk down a piece of plastic – and inherent 20+% interest rate – when they could be getting a much lower rate with a home equity loan or through a refinance?

Bad debt is using a credit card to pay for home improvements, home maintenance, dream vacations, college tuitions and such. Good debt is when you do the same at a fraction of the cost.

In fact, even better is when you consolidate the mountain of credit card debt and accompanying penalties into one manageable – and far less expensive – home loan. It can change your life and open a door to a financial future that you never thought possible.

So take out your calculator – or fingers and toes if you’re more comfortable – and see for yourself the difference between what you are paying today and how much lower it could be tomorrow. Better yet, talk with an expert Loan Advisor about a mortgage loan; they can show you how much you can save.

Written by: Royal United Mortgage LLC Blog Team
Published: 10/27/2015