Is it better to save first or pay down debt faster? The answer depends on your financial situation.

Do you have an emergency plan? Does your employer proved retirement plans? How much credit card debt do you have? There are important questions to ask when making your plan.

 

Sometimes, refinancing your loans loans is a good idea. Getting a lower interest rate, shortening loan terms and consolidating debt are all good reasons to refinance. However, it will usually drop your credit scores. Whether you want to refinance your mortgage or auto loan depends on your financial situation.

 

If you are able to pay down or eliminate your debts you should. Start with high interest credit cards first, and then pay down your mortgage last.
However, you should consider your financial situation first. Is it worth it to pay the fees associated with refinancing? Can you get rid of your debt without refinancing? can you change your spending patterns? These are options to explore before making major financial decisions.

 

Paying off debts is always a good idea. However, using the equity in your home may or may not be a good idea.

Getting a lower interest rate, making fewer monthly payments and getting more money are all good reasons. High closing costs, poor spending habits and risk of foreclosure are all reasons you should think carefully whether this is a good idea.