Don’t use your home as an ATM

Please don't use your home as an ATM. Far too many families don’t properly manage their spending and rack up their credit cards expecting to use the equity in their homes to pay the bills. Using the equity in your home to pay for flat screen TV’s and leather sofa’s is not suggested. If you can’t afford it yet, then don’t buy it.

Impulse buying is what gets most people. If the cost is over $100, sleep on it and than see how you feel the next day. If you still must have it, figure out what you can cut from your budget to afford it.

Consolidating your debt can be an excellent idea if done properly and not on a regular basis. If you pay off higher interest loans with the equity in your home, make sure to put the new monthly cash flow back on to your mortgage. If you are used to paying $2,500 a month to cover the mortgage and credit card payments but your new mortgage payment is only $1,800 with the consolidation, put the remaining difference ($700 in this case) back on to your mortgage.

This stops you from habitually wasting the equity in your home and essentially pays down your mortgage even faster by giving you more cash flow to do so. This will also significant increase your net-worth down the road through the are accelerated pre-payments.

Debt consolidation is simply a numbers game, sometimes is works and sometimes it doesn’t. It is our goal to figure that out for you.

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Remember to Own Your Life and have a nice day!

Best Regards,

Jessi Johnson

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