Interest rates have remained at historical lows for not just months, but years. Most of us are quite aware that interest rates are bound to rise, possibly by the middle of this year.

Paying more interest on debts than you need to, can be detrimental to your finances. here are some tips from I would like to share with you:

1. Don’t assume your interest rates and mortgage payments will remain the same. Build in an allowance for higher interest rates into your financial plans and projections.

2. Don’t only compare interest rates. Focus on Amortization and how it can impact the total repayment cost of your debts.

3. Other debts – what matters is the total average rate that you pay on ALL debts. Combining all your debts may be more cost effective.

4. Always pay off all credit cards to avoid HIGH interest rates!

It all comes down to CASH FLOW PLANNING.

As always, it is a great idea to sit down with an financial advisor and review your specific circumstances. Call me today… I can help!

Cash Flow Planning