One Possible Cash Flow Solution: Refinance!

Whether the recession means that you’ve lost your job, home, and retirement, or just that you’re more likely to clip coupons and eat out less, there are very few people who have not suffered to a greater or lesser extent in the current economic situation.

Any decent financial advice will probably include taking a hard look at your expenses to see where reductions can be found. For most people, the biggest regular cost comes from their dwelling; while we can’t do much to help renters (except to ask whether you can find a less expensive rental that fits your needs), homeowners have a potent tool at their disposal: refinancing.

  • Actually, while mortgage refinancing is by far the most common type of debt restructuring, you can refinance nearly any major loan — cars included, and even motorcycles and boats have been given the refi treatment. And of course debt restructuring on the personal level can also include credit cards, merchant accounts, utility bills, and other debts.


Refinancing is basically a way to combat the loss of value on your home by replacing the original loan with a new loan, ideally with a better interest rate and/or other improvements to the original details.

While many of us are in a comparatively worse position than they were when the first took out their mortgage, keep in mind that this often comes with several more years of stability and equity. Therefore, the record-low interest rates combine with a potentially-improved credit score — giving you the possibility to save on your payment, your principal, and/or your term!


** Update ** Once I was old enough to control my own fate I knew that I had to find a better way than either of those that I had already experienced. I knew that I did not want to have so little money that I could not obtain any of the finer things. More importantly, I knew that I did not want to have all of the finer things in life but not be able to enjoy them. I was able to understand that there must be some balance that can be had. A balance that allows you the money you need to enjoy life while affording you enough time to enjoy those things. What good is it to have something if you never get to enjoy it? None. Imagine having a yacht that you have worked all of your life to get but not being ale to get even 1 week off of work to go out in it.

I have since found a way to have my cake & eat it too. If you work hard & navigate life with a problem solving attitude you will be able to accomplish many of the same things.

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