Happy Friday! What a financially glorious day it is! Its payday and I have some super financial news to share. Sadly, no, my debt did not all magically disappear, but with 10 minutes of my time, I saved myself $600 in interest .
Ready for it?
You know all those mailers you get with the cheesy promotions that almost everyone associates with never ending terms and conditions, the type of conditions that require you to sell your first-born. Well, I received one this week, and I almost threw it away thinking it was another “sell your soul” to the bank type of promotion. After taking the time to open it and give it a read, it ended up being a financial wonder.
The Best 10 Minutes I Spent On My Finances
When you have debt, you try with all your might to consolidate, get the best interest rates and pay it all back ASAP. I know you are all nodding your heads vigorously. Good. So, if an offer comes your way to save hundreds on interest charges, you take it – provided of course you do not have to sell your first-born. (Reading and understanding the terms and conditions are very important.)
This week, I received an offer for a pre-approved line of credit with the option to lock in a one-time balance at 2.49% for the first year, thereafter it goes up to Prime + 2%, which is 5%. Yep, you read correctly, 2.49%! On my current Line of Credit, that I will be closing, I pay 5.5%. Instead of $1200 a year in interest, now I am down to $597. #awesomesauce
What did I do next? I got on the phone immediately and started asking questions,
How does this work?
What will my payments be?
How is interest calculated?
Is there loan protector insurance? (Yes, I find it valuable. If I lost my job, it would save me.)
After I was happy with the answers, I signed up, prepared to transfer the balance of my current Line of Credit (which is now closed) and locked in the 2.49% rate.
An added benefit to this Line of Credit is that it requires a monthly payment that is automatically debited out of my bank account each month; I have to pay it, no if’s ands or buts. Of course, I always make regular payments to my Line of Credit but previously, I had the option to skip one if necessary – not good when you are trying to wipe out debt. Now there is no option, I must pay it and I can make additional lump sum payments if necessary.
Another bonus caveat is if I try to take additional funds from the line, now that I’ve locked in the interest rate on the current balance, it will be at the higher prime + 2% (5% currently). So I have further motivation to never, ever take any additional money out of the LOC.
As simple as that, with 10 minutes of my time, I’ve saved myself $600! You’ll have to excuse me now; I am off to make a payment to that LOC….but first, check out this week’s link love:
Some of these are a bit older but very much worth mentioning.
The Frugal Farmer – Your Debt Payoff Journey; Blazing Your Own Trail
I’m Charming You – NO MORE MACARONS PLEASE Thought I’d throw some goofy fun into the mix.
Club Thrifty – Who Wears the Financial Pants in Your Family?
This Beautiful Day – 9 Ways to Save Money + Still Live Well
The Shop My Closet Project – The Alchemy of The Side Hustle
Blonde on a Budget – One Month Without Takeout Coffee
Don’t forget to enter the giveaway for a $50 Prepaid VISA Card!