Malvern Bank’s "Money Matters"

Hello,

As we approach winter, which do you prefer: avalanche or snowball?

Both are tried-and-true approaches to reducing debt. The difference between the two is the order in which you pay off each balance.

The avalanche method starts at the top and pays high interest debt off first. Over time, you'll pay less interest, but it takes discipline to get there.

The snowball method targets the lowest balance first, and although it's more expensive in the long run, it yields quicker immediate positive results - and we all like quick results.

Ideally, for peak financial health avoid accumulating too much debt, as the New York Times article talks about below.

Malvern Bank can help. Debt consolidation is one of the best methods of eliminating high-interest debt. Home equity loans (HELOCs) are a particularly good tool for doing this since they usually come with low interest rates and long repayment timelines. For some homeowners, it makes sense to refinance a mortgage to pay off debt, such as credit card balances. They can accomplish this with a cash-out refinance: getting a mortgage for more than they owe on the home, taking the difference in cash and paying off high-interest debt with it.

Which debt-reduction approach is best for you? Let's tailor a strategy together. I suggest contacting Georgette Krick, Financial Center Manager and Home Equity Specialist at 610.469.9172. She can review your current financial plan - or help you build one that is customized to meet your needs and achieve your dreams including how a HELOC can be beneficial.

The hand-picked articles below offer more helpful tips and information for this holiday shopping season. I hope you find them useful. Feel free to share them with your contacts.

Sincerely,

Anthony C. Weagley
President & CEO
Malvern Bank, National Association
Beyond Your Expectations ™
Office : 610.644.9400

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