“Because things are the way they are, things will not stay the way they are.” –Bertolt Brecht
If you haven’t been a victim of the economy in some way, shape or form in the last two years then you’re probably living on an island in la-la land. Even if your income has remained steady, I’m betting that the value of your home has dropped or your retirement plan has been rocked. The economic downfall has changed all the rules of the game.
My career is marketing. I’ve been working for financial services companies since 1998. It’s the “great recession” and I’m in the unique situation of trying to convince people they need a loan from my financial institution. I love a challenge, and I’ve got a big one.
Let’s face it...right now most people should not be taking on new debt. However, taking on a new loan doesn’t necessarily mean taking on new debt.
If you have a mortgage, if you have an auto loan, if you have a home equity line, if you have a credit card...take a few minutes and check out your rates. Chances are you can refinance those loans to a new lower rate and/or shorter term. If you choose the right financial institution, you can probably get balance transfer fees waived or closing costs reduced.
The other day I talked to a friend who will save $700 in interest over the life of her auto loan because she re-financed to a lower rate. Ka-Ching!
Refinancing a loan is not difficult. You can do most of the process over the phone or online. Trust me...financial institutions are more than eager to help bring your loan over from the competition. They will make it easy on you.
I’m a coupon clipper. I’m a thrift-store shopper. I’m a bargain hunter. I’d like to think that I’m a half-way decent negotiator. Take a little advice from a friendly blogger who loves a money-saving deal:
Spend a few minutes figuring out your existing loan rates and then research your refinancing options. After lowering your loan rates, apply the same amount of money each month to your loan payments that you have been paying all along. Not only will you save big money on interest, but you’ll also pay off your loan sooner!
(Watch out Suze Orman…I’m after your job!)
(But if you need a sidekick, just let me know.)