30 Day Financial Cleanse Day 11: Think About Refinancing

As a reminder this post series is all about getting a handle on your finances!  I heard about Personal Capital, a personal finance software company, and their 30 Day Cleanse and decided to take the pledge and encourage my readers to do the same!

Refinance high interest debt like a mortgage or student loan (examine anything over 4%). Prioritize this if you have ANY high interest credit card debt. 

If you are paying a lot in interest rate, consider refinancing. This might be a really great option for you, especially depending on your credit. Last year Tyler and I refinanced a car loan, savings us 2% in interest, as well as transferred a credit card balance to a new card with half the interest! It did affect my credit score having the new account lines open but it allowed me to spend less money overall and my credit bounced back just fine as I paid things down. 

Refinancing though is not always the option, depending on where you are. For example, it I were to refinance my student loans now I would have to pay significantly more per month, which is not where we are at right now. We looked at refinancing our home loan but between fees and the fact that we have already paid all of the interest (since we paid it first and are 7 years into paying it) we would have to pay the interest again, which we are not wanting to do. So for us, it made sense to just stick where we are at. 

Stay tuned for Day 12: 401K Check in! 


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