The Basics of Debt Management

Dear Ali, 

I hope this message finds you well! If you're interested in applying for a mortgage, then you probably know what an important role debt plays in your finances. 

To manage your debt most efficiently, make a plan to pay off non-tax deductible and high-interest loans as quickly as possible. 

Be Extra Cautious of These Two Types of Debt

Credit Cards

If you use your credit cards as a loan, you could be paying very high interest rates, which quickly become a financial burden. 

Try to pay off the credit cards with the highest interest rate first. And, don't be afraid to call your credit card company and simply ask for a lower rate! 

Interest-Free Loans

Interest-free loans look tempting when you don't have much cash to spare. But, they can be problematic once the "interest-free" period expires. 

You may have to pay interest backdated to the date of purchase. Be sure to check the terms of interest-free offers very carefully.

If you have any questions on this topic, or I might be of any assistance to you, I would love to hear from you!

Sincerely, 

Anna Smith