2015 is the year to take ‘charge’. 5% is the magic number. For the past five years interest rates have been at historic lows (the first Window opened). During that time you should have either refinanced or bought a new home with a mortgage rate below 5%. If not, this is the year to ‘take charge’ and do it. Auto loan rates, whether new or used, are below 5%. If you are paying more, this is the time to refinance or trade in. Gas prices are down dramatically (the second Window opened). What are you going to do with the savings? I learned an interesting fact over 30 years ago. Approximately 50% of all credit cards have a balance and only the minimum is paid each month. That means you are paying 18% or higher interest rate each month. Today, the number is still approximately 50% of all credit card holders. That’s terrible. I strongly suggest to those with a balance, use the gasoline savings to pay down your balance. This is a huge step towards improving your credit score and setting yourself up to buy a home. If you have any loans that you are paying over 5% interest rate, now is the time to make a change. Another 5% suggestion. Right now job openings are at a 14 year high, 5 million unfilled positions. It’s time for a 5% raise at your current job or a new job that pays 5% more.
Remember, the more you make and the better your credit will equal a better home for your family.