Pay Off Debt - Get Out Of Debt And Lower Your Monthly PaymentsWritten by Carrie Reeder
Debt consolidation can be confusing, especially if you have never considered contacting a debt consolidation company before. A debt consolidation company can give you free advice on reducing your monthly payments and show you path to becoming debt free. High interest rates and various fees charged by creditors can leave average consumer unable to meet their monthly financial obligations. If you have found yourself overwhelmed by credit card debt and unsecured loan payments, debt consolidation may be answer you have been looking for.
The services offered by debt consolidation companies will not eliminate your debt overnight, but they will assist you in lowering your interest rates and monthly payment amounts. Debt consolidation is not an instant cure for your financial problems, but rather a tool that is available to consumers who can no longer afford high payments and high interest rates charged by creditors. Instead of making high monthly payments to your creditors, you can drastically lower interest rates on your accounts and lower your monthly payments.
If you are currently making minimum payments on your credit cards and struggling to pay off loans, medical bills, and other unsecured debts, a debt consolidation company can give you a free evaluation of your financial situation and contact your creditors on your behalf to make new arrangements for repayment of your debts. Debt consolidation is not a new loan; it is a re-negotiation of terms of your original accounts. In utilizing services of a debt consolidation company you can pay off your debts in a much shorter time and pay less money each month.
Rental Property - Refinance, Don't SellWritten by Steve Gillman
You own a rental property for years, and never see "big pay-off." Is it time to cash in on your investment, now that you've paid down mortgage, and values are up? Maybe not.
The Problem With Selling
Selling means you'll have to pay a large capital gains tax. This can be avoided if you reinvest through a 1031 exchange, but then point is that you want your money, right? Also, a good rental gets more income as rents go up. Do you want to lose this inflation-indexed retirement plan? What's alternative?
Refinancing Rental Property
Have you considered that if you refinance, you can get much of your gain out of property, without paying a penny in taxes? Borrowing money is not a taxable event. You can take it and spend it however you want, and still keep your rentals.
Let's look at an example. Suppose you have owned a small apartment building for years. You bought it for $240,000, with a downpayment of $40,000, and mortgage payments of $1650 monthly on balance. Now it is worth $400,000, you only owe $120,000, and your cash flow is around $800/month. How do you get at that equity?