That is true, Ariel. More power to your husband and your intentions and goal of tackling your debt. Success is yours because you are working on it.

That is a brilliant plan, Tamara and it is realistic too. Bravo! It is a blessing that your bank does not charge a prepayment penalty. I think banks worldwide learned their lesson in 2008 when there were lots of foreclosures because people could not pay per their circumstances. Making sure that your bills are paid on time also helps with your credit rating and you may just find that the interest rates on your loans and credit cards are reduced to acknowledge this. My bank charges me a lower penalty rate on my credit card and even raises my limits from time to time. So I make sure that I am on top of my game. Thanks for sharing your tips, Tamara.

Bravo Beverley! I have never tried the credit card tip though I do remember in my student days as a Chartered Accountant Trainee, I had colleagues who used this method with their credit cards and then transferred their debts to their home loans when they decided to purchase a home and settled everything through 1 debt. They were diligent with the home loan repayment though.

Thank you for sharing your experience Deb and validating the fact that if we talk to the bank or financial lending institution, they will help us to find a viable solution. Banks don’t like to foreclose loans because they still need to then dispose off the home to recover their principle loan amount and are more than happy to avoid the situation.

I’m happy the information is useful for you Karen. Good money management means having funds for things and services that we need or perhaps even indulge in a much desired want. The opportunity cost of spending money which could have been spent elsewhere on fees and penalties is higher than just the monetary amount.

My husband and I also negotiated our mortgage interest rate – economy was in a bad state, people in our town were abandoning property. We could show strong history of paying down the principal, and sent a spreadsheet with our plan to pay the mortgage off early. The bank worked with us and reduced the rate. Lesson learned for us: if you don’t ask, you won’t know. Glad we asked!!

In the past, when times were leaner, I was really good at playing the credit card transfer game too. When one credit card would offer a very low interest rate on balance transfers, I would take advantage and move balances on any higher rate cards. Money is one of the big topics in my life and through a combination of natural understanding of the laws of money and education, I feel quite confident in the way I handle finances. Other than of course being in a place where it would be lovely to manifest more. 😉 Thanks for the very helpful read Vatsala!