Here is a simple method. Sum up all the principle debt amounts. Use the second mortgage rate in your area. Deduct that from the interest rate of these debts. Times the debt the interest rate and that is what you could save if you reduced this high interest cost monthly. We have used an example saving of $105 a month using a 6% reduction. It could be $100’s of even $1,000’s depending on your situation.

Interim solutions could be low interest balance transfer credit card; bundle up consumer loans into lower rate credit facilities; high interest debts into a new second mortgage or equity loans. There are many possibilities just remember you are trying to reduce so be careful what you are given options they actually reduce and ask for proof.

You will notice on the top row an Item called “High Interest” and beside it “Reductions”. This is important. You can calculate the savings you can make each month by lowering your interest rate of “High Interest Debt" and add it here as a potential reduction and check when achieved.

If lenders see they will get their money back or a higher probability than the interest rate is reduced. This is important for the list and your financial health. You will understand on Step 6 why we had our customers create this “Work Life Financial Rewards & Goals” plan.

So make a list of high interest business loans, educational, credit card, consumer, auto, equipment or other nigh interest loans sheet. Highlight the ones with interest that is significantly greater than a second mortgage and estimate what you can save.