From Zero to Sixty

If you could treat your debt reduction plan like a sports car, there’s a good chance you’d floor the gas pedal and go from zero to sixty in a matter of seconds. In debt terms this would equate to getting from no net income to some amount of income over expense left over every month.

If you are making debt payments every month, and a sizable amount of your income is going to interest charges, it’s simply hard to get ahead financially.

Many North Americans aren’t driving “financial sports cars”. They’re driving the equivalent of bulky debt-ridden sedans that are loaded down with unnecessary options and guzzling gas like there’s no end to the supply. In other words, many households are barely making ends meet when it comes to covering their expenses. Their budgets are weighted down with bad debt choices that guzzle any incoming funds.

Tuning the Financial Engine

Talking about debt reduction and budget planning isn’t as much fun as talking about sports cars. But they are subjects that must be addressed if you want to make sure you are always in charge of your finances. There are just too many instances where people incur debt and the debt then drives their lifestyle.

The reason the debt becomes the engine of the household budget is primarily because of interest charges. When you look at mortgages, loans and credit card debt, it quickly becomes apparent that payments are primarily applied to interest charges. The principal debt itself changes very slowly, so your income is tied up in payments for years that lead to little progress.

Through careful budget planning, you can fine tune your household finances. First you look for ways to reduce all unnecessary expenses and then you reduce the interest you pay on remaining debt. The strategy for improving your financial picture is really that simple.

Have a look at our credit card debt reduction solution to find out how.

Accelerating Your Financial Success

Debt elimination should be the primary end goal of any debt reduction and budget planning program. In most budgets the largest single expense item is the mortgage payment. When you obtain a mortgage, it requires you to pay a large monthly payment which mostly goes towards interest charges for about two-thirds of the life of the mortgage.

So you pay and pay and pay and after twenty years have only paid off less than half of your principle balance. When you start debt elimination and budget planning, you can take advantage of programs like the Money Merge Account® program from United First Financial® which rapidly lowers the amount of interest you will pay on your debts by simply making sure you effectively use the four techniques of debt elimination.

You don’t have to consider yourself “stuck” on the debt highway just because you have an existing mortgage, some debts and a fixed income. There are ways to accelerate debt elimination so that you pay off even major debt quickly. This mortgage debt reduction plan helps you reduce the amount of mortgage interest you pay and eliminate all debts in a fraction of the time!