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Why Stress Over Mortgage Payments When You Needn't

Author: EricJilson Total views: 8 Word Count: 600

Downsizing one's home or living arrangements has become an increasingly popular choice among families recently, with rising costs and generally troubled and uncertain economic times looming over everyone's head at present. Not only will you reduce your rent or mortgage payments, but you'll find that your utilities can be reduced as well. Moving closer to work or to commonly traveled points can also drastically cut your gas consumption and costs.

Mortgage or rent payments are the largest single expense that families have, accounting for as much as 30-50% of a household's gross income. Scaling back on your living arrangements naturally affords the greatest degree of potential savings. You may even find through selling your old home that you can virtually pay off a smaller one in one fell swoop, cutting out mortgage payments and long term interest rates entirely.

If you're struggling for disposable income or even just to make ends meet, this is certainly a great option. Sure living in a large space is nice, but for the potential stress it can save and other options it can open up for you, is it really that important to have an extra 1000 square feet? How many of those rooms do you really use? Do you need a basement that big or a yard that big?

Real estate taxes are another major payment that home owners must make, and while these will never go away, whether your home is fully paid or not, a smaller home, and in a potentially less lucrative area can cut those taxes in half or more.

A smaller place will also cut utilities costs. It takes twice the amount of heat or conditioning to warm or cool a house twice as big as another, and these are no small savings. You find that a cheaper, older home may not be as well insulated though, so you may want to look into this immediately upon moving to maximize your potential utilities savings right from the start.

Beyond the actual amount of money saved, investing or using that money for other ventures could increase the savings even more. Even savings of just $1,000 a month being invested into a low risk stock or other source could equal additional income of as much as $15,000 a year. That could equal into quite a few vacations, season tickets, new electronics and other luxuries, just for living in a smaller space.

You'll also find that there's less work to do around the house, which the stay at home member of the family will appreciate. Fewer windows to wash, less carpeting to vacuum or flooring to wax etc. will all lead to more time in other pursuits.

That's not so say this is right for everyone. Some people may find the downsizing difficult after being used to more, may really like the extra space or just the social status that comes along, or that they feel comes along with a bigger or more modern place. If moving to an apartment or condo, you'll also need to consider whether pets are allowed should you have some, and whether the presence of close neighbors and potential noise will bother you.

It could very well be that one member of the family will approve the idea while others may not, of course they are not having to spend time doing credit card loans. If this is the case with you, mention all the positives mentioned here plus any more you can thing of, and let them know all the wonderful things you'll all be able to do with that extra money, and you may not find it so difficult to sway them.

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Join Eric Jilson at http://www.everlife.com. We've created an outstanding resource for you on the topic of transfer credit card loans.

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