Podcast | Season 1 | Episode 60

The Description

Do you have multiple forms of debt and are unsure which to pay off first? In this week's mini-episode Jason Runung, CFP® will address this topic. 

Host: Jason Runung, CFP® | Vice President

Jason is a Senior Financial Advisor in the Lone Tree, CO office and Vice President of Summit Wealth Group. His work experience has been focused on the financial services industry since 2006. He held positions as a Financial Advisor in both a national firm, as well as an independent Registered Investment Advisor (RIA). Additionally, he participated as the Director of Business Development for a private equity firm and an Advisor Relationship Manager for a national custodial institution.

Jason received his Bachelor of Science degree in Economics from Texas A&M University. He holds the FINRA Series 7 and 66 securities registrations and he is a registered representative with Commonwealth Financial Network® (a registered broker/dealer, member FINRA/ SIPC).

Throughout his career, Jason has helped young professionals and families establish day-to-day habits and plans that will impact the entirety of their financial future. They are often surprised at his ability to interpret, analyze and translate complex financial concepts in a way that helps them feel comfortable and secure about their finances. By delivering an approachable and comprehensive plan, Jason helps clients clarify the path to their goals. He has assisted mature couples by confirming their diligence and persistence have paid off and they are ready to retire. And he has helped small business owners review their current operations, the impact on their personal standings, and how to take care of themselves, as well as their employees and clients in the long run.


(719) 633-4033 | 13710 Struthers Road, Suite 115, Colorado Springs, CO 80921
Securities and Advisory Services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services are separate from and not offered through Commonwealth Financial Network.

Thanks for listening! Make sure to follow us on all the socials at @summitwealthgroup, so you don't miss an episode!

The Transcript 

Stephanie

"Jason Renung, Certified Financial Planner and Vice President at Summit Wealth Group is the host of today's mini episode."

Jason

"So, when it comes to debt, really, um, people tend to focus on whether or not it's student debt or credit card debt, HELOCs, mortgages, things of that nature. But really what you want to focus on is the interest rate.

You don't have to be emotional about that debt. You just have to Take a look at what the interest rates are and what you can do about them. Um, typically from a standard standpoint, that means the credit cards are very high. Uh, so usually you would want to focus on those first. Uh, then going down through personal loans, ELOCs, uh, student loans can range.

In, um, the higher realm as well. We have seen those, uh, but not necessarily and, uh, all the way down to mortgages, which really are pretty low right now, uh, quite frankly. And so you would want to have a serious look at whether or not you want to prepay or pay down your mortgage. So with these different types of debt, um, the first one that I'd mentioned was credit card debt.

Uh, that is a. You know, the interest on a credit card is non deductible, um, so really it hurts you in multiple ways and so you would want to go ahead and focus on eliminating that debt first, especially if the interest rates are high. Moving on down, they have disqualified HELOCs from, uh, from being tax deductible unless you are using them for a home improvement.

So if it is just a HELOC that you used for debt consolidation or something like that, then you would want to go ahead and get rid of those as well as they're not deductible. Um, so with home mortgage debt and student loan debt, those are deductible from a tax standpoint. However, with the new standard deduction, you would want to take a look at those with your tax professional to see if that's something that you would want to reduce and aggressively tackle.

One of the things that And I'm often asked is whether or not you should pay down your mortgage. And again, this can be an emotional issue, but primarily you need to focus on interest rates and the impact that it has on your overall finances. Uh, the extreme that I use for this example is if you had a 0 percent interest rate on your home mortgage, would you pay it early?

And if the answer is no, then you know that there is a, an interest rate level in which it makes sense to prepay it and one where it doesn't. Thanks for taking a few minutes to review this with me. And I hope that it is helpful to you in your financial situation."

Stephanie 

"Thanks for listening to a mini episode of the reacher summit podcast by summit wealth group. If you'd like to help support the podcast, please share with others and subscribe. So you don't miss an episode. Thanks again."