8 strategies to reduce your home loan burden and become debt free

While it’s true that owning your own home is one of the most important financial goals you can set, it’s also true that mortgage debt can be overwhelming – especially when unexpected expenses crop up or your income drops and you suddenly have less money to pay down your loan each month. 

The good news is there are plenty of strategies you can use to get rid of your home loan debt once and for all, including 8 that aren’t as obvious as they seem at first glance. 

Below are 8 strategies to reduce your home loan burden and become debt free – or at least on the road to being debt-free!

Also Read- How to Draw Your Estate Plan in 7 Easy Steps

8 strategies to reduce your home loan burden and become debt free

1) Budget

The first step is to create a budget. With a budget, you know what you have and what’s coming in (and going out). Your budget can be as simple or as detailed as you need it to be. Start by listing all the bills that are due on a monthly basis. 

Once you know how much money goes into your account each month, look at what bills need to come out of that amount. 

If there are more than one bill with the same amount of money needed for payment, choose which bill is most important to pay off first- things like credit cards with high interest rates should go before other payments

Trying to eliminate all debts at once: One strategy may not be enough! Some debts may cost more than others depending on interest rates and length of repayment.

Also Read- Ways to save yourself from higher inflation rates

2) Reduce spending on non-essentials

The first strategy is to avoid overspending on non-essentials. For example, if you are spending $500 a month on cable, find out what you can live without by disconnecting for a month or two. 

You may find that you don’t miss it at all. If you are spending $200 a month on eating out, try cooking more meals at home in advance so that they’re ready when time allows and take lunch to work instead of buying it every day. 

These simple changes will not only save you money but will also cut down on the stress of figuring out how to pay these bills each month.

3) Get rid of expensive subscriptions

1) Cancel any subscriptions you can find. This includes streaming services like Netflix, cable TV, and anything that has a monthly cost. 

Some people find it difficult to live without these types of services, but they will really help you get out of debt. Save the money you would have spent on the service and put it towards paying down your loans or other expenses instead!

2) Reduce your grocery bill by meal prepping on Sunday nights. You’ll spend less time shopping during the week, which will save you time and gas money. Plus, you’ll have healthier meals all week long!

8 strategies to reduce your home loan burden and become debt free

3) Make sure you’re not spending any more than necessary on gas for work or school by carpooling with coworkers or classmates when possible or taking public transportation.

Also Read- 10 Ways to Use Your Credit Card Smartly (Without Going Into Debt)

4) Negotiate a better deal

In the United States, more than 25% of homeowners carry mortgages that are equal to or greater than the value of their property. 

This means that if they were forced to sell their homes tomorrow, they would owe money on the sale because there would be a negative equity balance. 

Negotiating a better deal with your lender is one way you can reduce this problem. 

Contacting your mortgage company and asking for a new rate might help, or even switching to a different lender completely could make all the difference in reducing your monthly obligations. 

Whatever you do, don’t just sit back and watch as the bills stack up. There are plenty of ways for you to get out from under the crushing weight of high-interest loans.

5) Make extra repayments

One of the easiest ways to pay off your mortgage sooner is by making extra repayments. This gives you more time at the end of the term, when you may have a lump sum from selling a business or property. 

For example, if you have a 30-year mortgage of $300,000 with monthly repayments of $1,500 per month, but want it paid off in 20 years instead, make an extra payment each month for ten years totalling $19,200 ($300k divided by 240 months).

The downside is that making these extra repayments might affect other financial goals like saving for retirement.

6) Get a raise at work

If you want to avoid the long process of paying off a mortgage, then the easiest way is by getting a raise at work.

If you are looking for a new job or if you need to negotiate a raise with your current employer, then consider these tips:

8 strategies to reduce your home loan burden and become debt free

  1.  Be tenacious.
  2. Know what market value is for your position. 
  3. Know what other people in similar positions are paid.
  4. Make an informed decision about whether you can handle the pressure and responsibility of another title or increased workload. 
  5. Use social media judiciously during this time as it may annoy coworkers or lead them to think that you’re too pushy. 
  6. Seek out mentors who have been successful in negotiating raises before; ask them how they did it.

7) Work from home

One of the best ways to save money on housing is by working from home. If you can get a job that allows you to work remotely, then try to get it! You’ll be able to live in a cheaper area, while still earning the same amount of money that you would with an in-office job. Plus, there are tons of websites that allow people from all over the world to make money online. 

There are multiple blogs dedicated solely to teaching people how they can start making money at their computer without ever leaving their bedroom. 

With a little bit of training and research, anyone should be able to find something that works for them!

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