Choosing the wrong type of mortgage can be detrimental to beating debt. Pay off your debt faster with the right mortgage:
SUMMARY
In this video, Dave gets a call from Jess in Springfield, Massachusetts. She asks, “Should I consolidate my loans, and should I get a variable interest rate or a fixed interest rate?”
Dave starts by stating you can’t consolidate government and private loans. You can consolidate two government loans, but the only reason to do that would be if you were going to get a lower interest rate.
Dave gives this example: say you had two individual loans that total $9,500 with the same interest rate and same monthly payment. You would pay them off at the exact same time as two consolidated loans with the same total value and interest rate. That’s why it’s so important to only consolidate your loans if you’ll save money on interest in the process.
Once you’re considering a fixed-rate vs. variable-rate mortgage, Dave says you should never get a variable interest rate. A fixed interest rate will always be more beneficial in the long run.
Most importantly, Dave reminds Jess that she is the “secret sauce” here. Her determination to save money and get out of debt will be what helps her win. Cut out extra spending in other areas of your budget and you’ll start to see change!
RESOURCES
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