How To Reduce Debt How To Pay Off Debt

by Susan from Fairfax, VA, USA

Ask Kate how to reduce debt and how to pay off debt: Hi Kate, Help! I pay my bills on time but divorce recovery has my middle credit score at 680. I wish to refinance my mortgage, rolling in 1st and 2nd. I ALWAYS pay on time but I think my debt to allowed credit is high. I have $15K line and owe $6800. If I pay that down to $2k can I expect a few points?

I need to have some concrete action steps as my current ARM comes due in 1 year (6.35% now) and I wanted to take advantage of the great interest rates which don't seem to be available for us 680 credit score folks. Thanks, Susan

Kate Answers: How To Reduce Debt - How To Pay Off Debt

Dear Susan,

Before credit scoring was adopted by the lending world, debt ratios were still important.

But to a large degree, if bills were paid on time and debt ratios were within underwriting guidelines, the actual dollar amount of debt did not translate automatically into weak credit.

But not today. The ratio of the credit that has been used to amount of credit still available is a factor relied on heavily in credit scoring.

For example, say you add up the amount of debt you owe on revolving credit such as lines of credit or credit cards. Now compare that to the amount of credit you still have available. The more available credit you have compared to credit you owe, the more favorable.

Well, for those who have used a major portion of their available credit, all is not lost. But before I explain where to go for help, there is someone to I'd like to introduce.

Meet Super Kate

Have you met Super Kate?

I have to admit my alter ego was inspired the day she developed The Mortgage Freedom Project. Super Kate's steps for getting out of debt are reachable, do-able, and practical.

To find out more about Super Kate's magical 6-step system to paying off your mortgage and getting out of debt, see the The Mortgage Freedom Project or keep reading.

My book will walk you through a series of systematic steps for reducing debt and getting out of debt, including the financing on your home. Now here's more!

The Mortgage Freedom Project by Kate Ford

Would you like to systematically pay off your mortgage, all debt for that matter, without changing your lifestyle?

Feels too complicated, doesn't it? Compounding the difficulty, most people don't know the mortgage game is rigged.

I don't mean lenders are doing anything illegal. It's just that mortgages are set up to pay the lender first.

But I can show you how to beat the bank at their own game with my magical 6-step system to paying off your house faster and easier than you ever thought possible!

Discover how you can be living debt free at...
The Mortgage Freedom Project
a new book by Kate Ford.

Ask Kate or Comment

Susan, one more thing. You (or anyone else reading this) can comment on How To Reduce Debt - How To Pay Off Debt. Or Ask Kate another question.

Have You Seen The Most Recent Ask Kate Answers

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Best wishes,


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