Fight against your loans

Can you save if you have outstanding loans?

It is possible but preferably eliminate these debts because the interest we are paying are higher than we think (if you have a credit card with an outstanding balance of $ 2,000 and are paying every month for delayed payment $ 50 , the interest you pay the bank in one year is almost $ 400 )

Basically, we have three types of debts: 

1. MORTGAGE: It is the most important and the most dificult debt to cancel. For all this, it's worth to do a lot of effort to snap out of it. For instance: 

• $ 250,000 mortgage over 30 years. Average interest rate over the life of a mortgage 4% (we are generous). The total interest paid to the bank are almost $ 180,000, so that the house cost us $ 430,000. Not worth making an effort not to pay so much interest?

2. PERSONAL LOANS:  from loans to buy a car, going on loan to furnish the house, pay our wedding or even to go on holiday. Absurd, right?

3. CREDIT CARDS:  money spent on credit without it. Expenditures are basically whims. Even more absurd, is not it?

The average mortgage is around $ 800 month, a personal loan to buy a car is $ 300 month and the monthly payment on a credit card could be $ 100 month. A total of  $ 1200 each month to pay off debts, A lot of money or a slab?

What insights can we do about these three types of debt?

1. The mortgage is there and is what it is, but we can "fight" against it. Do you really want to return to the bank $ 180,000 in interests? Would you do something if I tell you you can save $ 50,000? And if they were $ 100,000?

2. Because we buy a car if you have no money. So need a car to be the first big spending ahead of the home purchase? How often do you change car? Why not do otherwise than other people? It is usual to buy the car, borrow and pay $ 300 month for five years. It would be better to save those $ 300 during all months and 5 years, and then with the money saved, bought the car.

3. How many cards do you have? Why use them? Why buy if you have no money to spend? A credit card should be for cases of extreme emergency. A tip: Do not carry it, be tempted to use it. Want to know how to design a repayment plan card? Sign up here to receive the best tips to save.