Tis the season to sit down and make your financial plan for the year 2013. As for me, here is a list of financial things I will accomplish during the next year.
My first New Year resolution will be to obtain a copy of my credit report. I will get a report that has the three main credit bureaus' information, those being TransUnion, Equifax and Experian. This report will educate me as to what accounts I have open, any balances on these accounts and how much debt I really have in my name.
The report will also show any late payments and more importantly, any erroneous information that is on my credit history. If there are errors I will work diligently to get these items corrected and or removed from my personal report. Try AnnualCredit
Report.com to obtain a free report.
The next resolution will be to consolidate any credit accounts possible. I will do this by first making a list of all my credit card debt and then listing the cards' interest rates and how much available credit I have on each card. If possible, I will consolidate all the cards to the card with the lowest interest rate. I will then close all of the specialty cards, such as Home Depot, Victoria's Secret, Dillard's, etc. I will use one, maybe two cards at the most and make my life easier by reducing the number of checks I have to send out when the bills comes due.
My third resolution will be to use a paper shredder for all those personal documents that I would normally rip in half and toss in the trash. I will do this as the number of identity thefts is increasing at phenomenal rates. I am just a little fish, but I do not want to try to explain how someone else charged a diamond-studded, gold-plated widget on a charge account in my name.
My fourth resolution is to review my home mortgage interest rate and term. I will look at the interest rate to evaluate if I need to refinance to a lower rate or longer term.
My fifth resolution is to look at all of my debt, such as my car loan, and see if it makes sense to convert those loans over to a home equity line of credit (HELOC). Since the car loan interest and credit card interest is not tax deductible and the interest on a HELOC is deductible, I will most likely consolidate them to the HELOC.
Finally, I promise that I will pay my bills on time, and pay more than the minimum payment required. I will train myself to get into a better financial position and not over extend myself on diamond-studded, gold-plated widgets.
For answers to your mortgage related questions call Bob Kieber at (970) 453-4700 or email him at email@example.com. Bob is a local mortgage lender with Centennial Bank. He has 30-plus years of professional experience in real estate, finance and investments, and is a longtime resident of the High Country. Member FDIC, Equal Housing Lender. NMLS Bank #401640 Broker #289610. For tax benefit information please consult with a professional tax advisor. The opinions expressed are those of the individual, and do not necessarily reflect those of Centennial Bank.