PERSONAL DEBT WHEN PURCHASING A CONDO

Shopping for, and purchasing, your very own condominium should be an exciting and positive experience. Don’t let too much personal debt be your enemy.

Sure, there’s sometimes a little stress involved, as there is with any worthwhile venture in life. You’ve got to decide where to live. You’ve got to understand what you can afford. And of course, you’ve got to determine how close the best pizza-delivery place is located.

Stress about your finances, and especially any potential debt that may be lurking in your distant or not-so-distant past, is clearly something you can do without.

Few of us are without debt. It’s sometimes difficult to conduct everyday living without incurring some sort of debt. What we need to steer clear of, however, are things like installment plans for stylish new automobile accessories, as well as long credit card invoices for fast food, movie theater tickets and vacation charges that never seem to get paid off. That type of debt gets us nowhere, fast, and is definitely not what we need when trying to finance a Chicago real estate purchase.

But what to do if you’re on that fast track to Debtsville, USA? Get educated, get debt-free and get smart about what to do with your money. Buying a condo beats buying non-appreciating, unnecessary goods and all those restaurant meals you’ll never even remember six months from now.

Here are some handy tips about reducing personal debt and making your creditworthiness lean and mean, which is just what you need when shopping for a condo:

• Create a realistic budget for your expenses
• Pay down credit card bills, starting with the card that has the highest interest rate. Pay off the entire balance every month, if possible.
• Transferring debt from one card to another could lower your credit score.
• Do not charge up to the maximum limit, even if you intend to pay it off in full at the end of the month.
• Resist the temptation to borrow money to get out of debt. Avoid so-called consolidation loans.
• Wait at least 12 months after overcoming credit difficulties before applying for a mortgage. You’re penalized less for problems after one year.
• Use cash instead of credit cards. A study has shown that people spend approximately 30% less when they have to pull actual money out of their pockets instead of a credit card.
• Contact creditors to see if they will work out a repayment plan with you that can potentially avoid the hassles to both parties if your debt has to go into a collections process.
• Explore additional ways to make money, and put that extra money to use by reducing debt.

Want to talk about your specific credit standing and personal debt with a professional mortgage lender? OwnACondo.com is here to help. We work with preferred lenders who offer programs to finance a condo, as well as credit repair. Call us toll-free at 866-696-2266 for more information.