A mortgage is one of the largest debts you'll have in your life. For many people, the idea of taking on so much debt is daunting. However, like most debts, it's possible to take steps to make them affordable and easy to pay down over time.
There are many ways that you can pay off your mortgage faster than the 15- or 30-year timeline. Here are some tips on paying off your home.
1. Be transparent with the mortgage company
If you fall on hard times, one of the best things you can do is to reach out to the mortgage company. Instead of allowing the mortgage to default and fees to add up, they may be able to help you by allowing you a month or two without payments. This could give you time to catch up without the harassing phone calls that come with missing a payment.
2. Try to pay more each month
Everyone goes through times when money is tight. Most people also go through times when they have more than usual. Even if it's only one additional payment a year, paying more on your mortgage can help you reduce what you owe very quickly, so you can pay off your home and be free of that debt.
3. Put cash back to work
If you receive cash back from using credit cards or debit cards, put that money to work. Invest it back into your mortgage, and you'll see the amount you owe drop. Even a few dollars a month adds up over time.
This may be the largest debt you ever owe, but with the right attitude and money management skills, you can have success at paying it off early. If that's not an option and you are truly unable to make payments, a personal bankruptcy may help you get back in control of your finances.