Advanced Money Management
You also NEED to have a “Home Equity” LINE OF CREDIT (HELOC) 1. This should be with the Bank you have your Checking Account with. Tie the HELOC to your Checking Account for ON-LINE Transfers. 2. The Interest on the HELOC is calculated the same as your Mortgage (Average Daily Balance) – therefore your Interest Cost (at a lower VARIABLE RATE) will be LESS than conventional Loans, (Auto, Education, Credit Card) at a HIGHER FIXED RATE because you are floating a portion of the loan (reducing the amount they can charge you interest on) with money you already have for your budgeted bills! *3. Keep as little Money in your Checking Account as possible with Transfers back and forth to your HELOC as Money is deposited and Bills are paid! *Example: I PAID OFF my Daughters $12,000.00 College Loan with my HELOC, reduced my Monthly Payment and SAVED $520.00 in Interest in 1 year! The BUDGET TEACHER