Financial Margin

Financial margin is something we all want and need in order to stay focused on the far more important things in our lives!

#1 – Reduce interest rates on existing debt

This escapes many people because the interest rate of debt is usually “out of sight –out of mind”, but it could very well be the greatest one step you could take to gain financial margin.

Joseph Sangl highly recommend using his free tool – the “Actual Cost of Debt calculator” to determine just how much your debt is costing you – be sure to find out your actual interest rates so that the numbers will be accurate.

Here are two areas I where I see people save tons of money by reducing their interest rates.

1.Mortgage Interest Rate For every $10,000 finances, a 1% reduction in interest rate will save $100. So if you have a $150,000 mortgage and could lower your interest rate by 1%, you will save $1,500 per year in interest – $125 per month! I encourage you to use CNN’s Refinance calculator to see what refinance deals would work best for you.
2.Credit Card Interest Rate This is where I typically see ridiculous interest rate charges that are simply not necessary! Consider $6,000 in credit card debt at
21.99%. That will result in interest charges of nearly $1,300 a year. This is why Joseph is such a fan of 0% Balance Transfer Credit Card offers and maintain a list of offers on this website. If that $6,000 of debt were moved to a 0% balance transfer credit card offer, that incredible amount of interest would actually be applied to debt reduction!
Here are other areas to look at – vehicle loans, medical debts, furniture loans, personal loans, payday loans, 401(k) loans, and any type of loan where interest is being charged.