Consolidating 401k plans
Expenses include all of your monthly bills along with anything else you regularly spend money on, including food, clothing, and entertainment.A budget is nothing more than a spreadsheet that tracks all of this in one convenient place. Because it shows you where all of your money actually goes.After all, if you could take a big chunk out of your balance without even having to spend a penny, why wouldn’t you? In this case, the lender would be the one eating the loss.You can see why lenders aren’t exactly enthusiastic about renegotiating debt amounts.As for me, I took out way too many student loans for a degree I’m not even using. You’d have more money to put towards savings and investments. And if you’re like me, that also means less friction in relationships. Each debt that disappears is like getting a raise at work. Without that monthly nagging in the back of your mind, you’d be able to sleep easier at night.
Income is any reliable source of incoming money, the most obvious being your paycheck(s).Explain your situation, convince them that you’re serious about paying off what you owe, and see if they’re open to reducing your interest rate and/or principal balance. In simple terms, refinancing is when you use a loan to pay off one or more other loans.Think of it like paying off a credit card with another credit card.Money is one of the most common causes for quarreling, especially in marriages with joint access to shared finances.Getting rid of debt’s psychological burden can make you feel less miserable, but it can also overflow into your relationships with others and result in fewer disputes and arguments. But most of all, it’s the greater financial freedom that most of us want.