Suze Orman TwitterSuze Orman FacebookSuze Orman YouTubeSuze Orman LinkedIn
View Blog & News List

Take Interest In Shoring Up Your Finances Now

September 29, 2016 at 12:00 AM

It's human nature to think that making money entails investing in the stock market, bond market or real estate. But another important way to boost your net worth is to pay down your debts.

And right now is a fantastic time to focus on debt reduction. Because the Federal Reserve is moving ever so cautiously to raise its target rates, we have still yet to see any substantive rise in the variable rates charged on credit cards. That won’t be forever. At the same time, I bet your credit profile is now higher than it was a few years ago if you were struggling with a layoff during the recession. Or maybe you got a raise recently, or might be in line for a year-end bonus. That gives you some options for making a serious dent in your credit card debt.

  • Use Extra Cash to Boost Your Payment. If you are paying 14% or more interest on credit card debt, using a raise or bonus to chip away at the balance is the best use of that money. There is no investment that can deliver you a guaranteed 14% return pronto. But that’s exactly what you get when you wipe out a credit card with a high balance.
  • Leverage Your Improved FICO score. If you’ve spent the past few years recovering from a financial hit during the recession, chances are your FICO credit score is now higher. If you have a score of at least 720 or so, and are still paying a high interest rate on your credit card, call up the issuer and ask them to lower it. If they don’t make it clear you will be doing a balance transfer to a card with no interest for 21 months. (see the next point.)
  • Zero in on a great balance transfer deal. As I recently shared with you, there is now a credit card that essentially gives you a 21 month grace period to pay off a balance without owing a penny of interest.
And with home values continuing to post solid gains, anyone who wasn’t able to refinance a few years ago due to a lack of equity, should give it another look. Mortgage rates are still near historic lows. You know I am adamant that you shouldn’t extend your loan term by refinancing into a new 30-year mortgage, but right now 10 year and 15-year mortgages have fixed rates as low as 2.7%. That might make it possible to refinance into a mortgage that speeds up your payment without costing you more in monthly payments than what you’ve got on an old mortgage with a rate of 5% or higher.

Tag Cloud

death benefit needs for familymobile appresponsible with moneylearn good financial choicespeace of mindknow before you oweone credit cardincrease emergency savingsretirementloan no longer than 36monthssuitablecharges on credit cardFinancial Advicepoint cost offset by savingsSuze changed my liferetirment savingsGay Rightsincreased auto insurance premiumemotional stakespowerfulat worst still pay 75% benefityours, mine & oursConventional loan PMIpaying for collegeMinor Children co-sign debt freepay off debtcommunity banksummer job match income Emergency Savingsconsider roth 401(k)healthy teethincentives for health care wellness screeninglower premiumloan is giftquick closinggrandchild summer job IRA contributionanticipated salary3 step financial road mapearn more on savingsunsubsidized Stafford loanschool insurance mistakeSandy Hook Elementary School50 over 50calculate dependents annual income needshome buying seasonwomen live longerdon't extend mortgage long term goalYoung Adult dental insurance Credit Card Rate Increasefinancing car Satisfyingfiduciaryfocus on needsdental discount planFundsbuy homefinancial independenceCD'shigh down paymentPrime Rate Increasereduce withholdinglower mortgage interest20 to 25 times annual incomeWashingtoncredit utilization ratekids schedule paymentsverify wellness screening and programsmental healthprotect your familyage appropriate goalsHDHP's are good for youcut monthly cellular billapproved medical 100% tax-freedear suzeschedule vacationprotect loved ones no fee transferunexpected expenseMortgage Credit Availability Indexnot gender specific Bankruptcytax ID thefteliminate credit card debtmarriage inequalityCredit Card Interest Ratebetter termsRetirement IncomeLTCi ASAPlousy investmentreduce interest rate2016 adjust withholdingStudent LoanCommunication Skills Must Have Documentstoo expensive schoolFederal Stafford loanno late fee car leasingdon't cover cosmetic dentistryTelepicturesrefinancecomparison shoppingPost-Divorceallowance taskUniversity of Illinoispaid vacationFinancial Cliff30 year mortgage would you decline a bonushigh premiumsFiscal Responsibilitydon't blow tax refundCNBC740 credit scoreitemized deductiondo not pay allowance for good behaviorsecure creditrefundclosing costs 2% of loancouple financeshome loan credit score below 740 save moneyRichAdequate Auto and Home Insuranceritual scheduleForeclosureOverspendingworst financial mistakeFICO at least 720Money-Savinghome related tax break bonus 20 year level term non conventional routesocial securityreplace permanent life insurance with termborrow each year, capitalization is going to pile up Civil RightsLifestyleBankterm life insurancehigh deductible health care planmarriage financial responsibilityhigh FICO scoresmall changes HSA tax savingslife insurance name trust as beneficiarymoney-aware childfull retirement agechildren under 18raise insurance deductible8 month emergency fundfile taxes quicklynot enough life insuranceno interestSandy Hook Promiseloan necessitywaive home inspection bidcar buying mistakessocial security not going brokepay interest while in schoolGiftsnew carSuze is my biggest mentoroverspend on giftsDeath Benefitraising interest ratessame sex marriage band end Floridaovercome financial fearsignore 6 month grace period manage student loansspeak new goalconfident of solutionno life insurance financially irresponsibleinitial tax break Suze Orman's Money WarsSuze approvedlive below your meanslet them have 50% controltax refund frauddon't ignore open enrollmentresponsiblefraudulent returnsecured cardgift grandchild IRA contributiongift up to 14,000shorter payback periodbe kind to yourself3% debt transferred higher monthly paymentteens and moneydon't derail retirement savingsSuze Ormanlow mileage discountget health insuranceFICO Scorefinancial concernloved ones dependent on incomelong term careFICO credit score credit card mortgageSave Us Moneylow-cost index mutual fundaffordabilityOne Wallet At A Timeinterest capitalizationraising mortgage rates 2017 Taxesget credit cardback-to-school budgetunder 18 financial giftForbesterm insuranceLTCdon't defer interest paymentsVeterinary SchoolWarner Bros Television Grouppercentage men widowed 75-84College of Veterinary Medicinepay down car loanautomatic paymentEasy Life Insurance HDHP'sARM Cautioninsurance yearly reviewhome ownershipHigh Credit ScoreFinancial Awareness Video Festivalhighest possible benefitrent vs buydo you need life insurancepresident Obamaengaged in financeslower rateshop online guaranteed level term policyWillWall Streetno retirement funds for down payment4 Must Have Documents AARPmortgagetitle insurancefederal student loan deferment Financial Educatorreduce monthly paymentCory BookerETF'spay high rate off firstdebit cardretirement planstaycationemployer funding HSAInfluentialswomen long term caresave Americans don't use all paid vacation time8 Rulesemployer offered life insuranceloan big picture real estate mistakesworkaholicpublic service loan forgiveness programpositiveshort term goal adult childrenpublic service career student loan repayment identity frauddeath benefit 20 to 25 times annual incomebest interest of investorfile asapstudent loan repayment estimatorcost of capitalization calculatorHeartAARP Social security calculatorsetup automatic savings withdrawstudent loan debtSpendingMotherzero rate transfer dealsget over life insurance phobiapay more than minimumFederal Funds RateStudent Debtleave a legacyverify retirement plan with HR or plan sponsorkeep a scheduleCredit scoredangerous retirement planlow credit scoreprovider of financial supportage appropriate choremoney vowsInflation Benefitstore credit cards!00% tuition paidJose Rodriguezholiday spendingautomatic withdraw to savings permanent life insuranceCombo Insurance Productsenjoy saving Stock Investmentslong-term care premiums10 year repayment plan student loan repayment planhigh credit score discount8 month safety netmaintain standard of livingUS Tax Codemax employer matched 401(k) contributionLong Term Care premiums3 savings buckets costly insurance mistakeExhibitiongift not loanInterestSchool of Social Workorigination feessocial workadvice for college graduatesno private loan2015 record year car salesbalance transfer Vital Documentsbreakdown projected monthly housing costtake actionTeachpercentage of women widowed 75-84Selfishhealthy aging Alarm ClockStudent Debt Crisisemergency fund successPersonal FinanceEric Dodge earn allowancerequired disclosuresame-sex marriageavoid burn outoverspend on nights outSuze Orman spouse Kathy Travispreexisting condition not covereddangerous money seasonNew York Lifevalentines dayreferrals How To Build Credithealthy youno negativityAuto Savings wives should be involved in retirementonly refinance if it pays40% toward financial goaldebtGracebest interest ratesis it necessary?accelerate dental worktaxespurely financial standpointBaby Boomersincrease retirement contribution ratebest loan deal dream schoolcut monthly cable billPBS Specialdental savings planAccuQuote.com15 year mortgagepay credit debt ASAPchildren's book2015 financial roadmapcontribute household expenses college graduatePhyllis Shelton expert long-term careUniversity of FloridaHDHP alternative FICO scoreoverspend on dining outbuy home you can affordGay Couplesteach your child good money habits401(k) Contributionscompare provider pricingsavingsinterest on student loansFinal GoodbyeStaffords this year have a fixed 6.8% interest rateHDHP/HSAstudentbetter loan ratesPrime Rate Rise 2015better loan dealsone annual feedon't spend create new truthHolidaytraditional vs roth 401(k)roth irano private loansFree Debt Eliminatorno tax on withdrawlscollege studentno apologyuniversal college accessCiti Simplicity Card standard ratemortgage broker20% down paymentCommencementbig results bad retirement planningburn outis it necessaryfinancial aidmonthly dental insurance premiumGoodbyewomen longer life spancredit reportmultiple lendersForbes Top 10home insuranceFinancial Solutions For YouUrbana-Champaignpremiummax benefit coveredreal estate marketpay down student loan debtgraduationmax employee matchspring summer planIRA contribution gifted moneymortgage interest tax deductionprotect and provide for minor child juggle multiple financial goalsclosing disclosureFinancialSelectQuote.com3 bucket approachstay positive20% equitypay 100% cashdoctor no longer in networkhealthy retirement blood pressureget the most out of social security Employer Matched Contributionspecial saving accountNew american Dream sidelinedcommunity collegeannual cost of living adjustmentFixed Rate Mortgagecar loanface your financial fearcredit managementFinancial Gift Cliffbuy down women outlive menrequire chore in exchange for allowancewrite new goalMass Mutualkid borrow firstnear historic lowsbill paying priorities6 month waiting periodno sneaking in feesSuze Orman Scholarshiplowest cost fund optioncan you afford itcnbc alarm clockvalue moneythree year car loanbe true to yourself19 years cash flow problemstretch out haircut appointmentsno waiting periodgay marriage ban end Florida television hostGifthealthy gums15-year refinance dealFinancial AwarenessBill and Pennyhealthy retirement weightstandard deduction eight month living expense financial fearshome buying mistakesAshley SpringerThe Suze Orman Showheartachemonthly benefit prescription tierfamily save at least $100 monthlybecome member credit unionteach importance of helping othersultimate compounding giftInfluential Celebrityfinancial argumentsARMborrowing plan emergency fund savingsRevocable Living Trust20% down payment avoid feesMoney MarketMoneyFinancial Power of AttorneyFHA loan feesincrease retirement savingsLong Term Care shoppingaffordable premiumfour steps to retirement savings buying a carSwap Older Annuities or Life Insurance costly legal focus on new truth professional advisorcommissionsBeautyconfidentswitch to spouse coveragecredit card401KFRAprotect dependent rising home pricesmortgage disclosureMost Influential Celebrities Listretirement accountshome budget after tax costsocial security never insolventDurable Power of Attorney for Health CareLoveidentity theftletter to suzeHDHP's are not badFinancial Systembudget10% donate to charityHigh FICO Score = Better RateLong Term Care Insurance strained relationshiphome buying budgetphysical healthAmy Lacyetno splurge Roth 401(k)raise your deductibleHoliday Seasonautomate student loan paymentsInvest for savings growthgrandparent IRA contribution Federal PLUS loanPay Off Debt Before Retirementnegotiate points with bank or selleronly offered while employed student loan repaymentdon't use allowance as bribecontribution back door Roth IRARevocable Trustfinancial goal phrasemake saving a pleasurelong-term care LTC shoppingmeet monthly allowancedoctors in networkMarlo Thomasadd teenRetirement Savings2016 adjust estimated taxFederal Reservealways use all paid time offbad decisionsrolloverpush yourself to save more for retirementbuying car 2016Holiday ShoppingCOLAlower overall drug costChanging Livesclosing feeshigher insurance deductiblelower interest rateLegal Guardianbe good exampleCPI-Wproperty taxswitch to roth 401(k)compare monthly expensesdepreciating asset housing marketderailed plandon't charge a pennyis it kind?open enrollment review escrowinsuranceretain separate credit cardsNewtowniffy incomesavings pleasureadjust allocations is it true? life insurancepaid in fulldon't buy wantslow down paymentraise deductiblesrepay student loansexercise reguarlyjanuary billscommitteensdon't do five year car loan


View Blog & News List
People First. Then Money. Then Things.
Connect with me on Facebook Connect with me on YouTube Connect with me on Twitter
© 2017 Suze Orman Media Inc. All rights reserved.
 
 |  Search  |  Sitemap  |  Privacy  |  Terms
Sign Up For E-mail Offers
Open Panel
Close Panel