This
program will help you undo financial bondage.
Consolidating debt is taking out a single new loan
to pay the debt from more than one
previous
loan. Do this only when the annual interest charge on the consolidating loan will be lower than the annual interest charge you are paying on the loans that you would
consolidate and there are no other fees that make the overall charges higher.
For example, you would use a new loan that has a 6% annual interest rate to pay off three loans that currently have 10%, 12%, and 15% annual interest rates.
This strategy allows you to more
quickly eliminate debt by reducing the interest you pay to the lowest possible
level and helps simplify your budget by replacing several different payments
with one payment. For this to work at its best to get you out of debt and into
financial freedom you must continue to make the same level of monthly payment and
possibly more that you were making on all the loans that were consolidated.
Also, you should resolve that you will refuse take on other consumer loans in
the future. In addition, it’s best to close all charge accounts and cut up the
cards, so you won't be tempted to use them again. Most of these accounts charge
you annual interest at nearly twenty-five cents on each dollar.
When possible, consolidate higher
interest debt into a fixed-rate low-interest consolidation loan that has no
pre-payment penalties. These are normally closed-ended, which means the amount
paid off each month is not re-usable. This helps you stop using debt as a go-to
spending method in the future.
If you are considering using a new credit
card with non-fixed interest rates as the consolidating loan, never consolidate
any current loans that charge interest at a lower rate than the new credit card.
Also, thoroughly read the credit card agreement to ensure the creditor will not
at some point raise your interest rate to a level higher than what you
currently pay. This is tricky because most won’t make such a promise except for
a short-term (six-months to a year) and only for the money transferred during
the promotional period. Any new charges will not get such a guarantee. You
should know for sure that you have enough extra cash flow to pay the consolidated
balance off within the promotional period or else you’re likely to eventually wind
up with a higher interest rate than you had prior to consolidating.
If you have home equity, you could
consider consolidating debts using a second mortgage or home equity loan.
Normally, you could obtain a lower interest rate than that provided by other
types of loans and you might be able to reduce the amount of income taxes you
owe each year by itemizing the second mortgage / home equity loan interest charges
on your federal tax return. However, be aware that failure to pay on this type
of loan could result in the foreclosure of your home. So, faithful discipline
and diligence sticking to a budget plan to get out of debt as soon as possible
is necessary to avoid problems down the road.
It’s usually best to avoid consolidating
debt and simply use great budgeting focus to eliminate your debts, when you can
pay them off in a short time (1 to 2 years) without consolidating. No
matter which road you choose, focus on increasing your income via a second job
or profitable entrepreneurial endeavor that provides added cash flow to apply
to debt elimination.
Deuteronomy 28:12, 15, 44,
Proverbs 22:7, Luke 16:8-9, Romans 13:8
Please pray for this
ministry and email questions to parlor@ameritech.net
and share the links below with others who need guidance. May the LORD bless you
richly as you follow His plan!
Share https://kminfo.org/ministries/financial-freedom weekly with family and friends so these
bondage-breaking articles and other financial information can help them gain
helpful insight! @everyone
The book at the link below provides
principles and practical steps that help you use the Power To Get Wealth.
By 1992, we had $135,000 of debt and a negative $35,000 net worth. Financial
bondage and turmoil led me to seek principles and a process for employing good
stewardship. As a result, we became constructively debt-free in 1998, mortgage
free January 2004, millionaires in 2012, multi-millionaires shortly thereafter,
and retired in 2018 in my mid-fifties from public servant jobs while giving
abundantly to fund the gospel of our LORD Jesus Christ. The same power is
available to you!
https://books2read.com/u/4NgpBo
https://www.amazon.com/Power-Get-Wealth-Randy-Parlor-ebook/dp/B08QCH5MVH/ref=sr_1_2?keywords=Randy+Parlor&qid=1638336718&s=books&sr=1-2
You can find books
authored by Randy and Karen Parlor at www.Amazon.com.
You
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