Unpaid debt can drown a person. The sooner that you can eliminate credit card debt and other types of consumer debt, the better off you will be. In my article, "Getting Out of Debt," I outlined some simple steps to take to begin reducing debt. Today, I would like to share some insights into another possible source of funds to eradicate that debt -- your home equity.
A word of caution is in order here. Have you heard of "Predatory Lenders?" These are lenders who prey on homeowners desperate for money. Since people often fall into debt due to medical bills that arise from sickness, or disabilities that unexpectedly reduce their income, it is easy to feel desperate to get the creditors off of your back and restore your good name. This does not put you in a strong bargaining position when you deal with an unscrupulous lender. Lenders should not influence you to refinance your home in a way that would not be in your best interest.
Many homeowners have built up sizeable equities in their homes due to increasing real estate costs and the years of payments. While it is attractive to be able to cash out, one must be careful not to cancel too much equity, rendering your home virtually worthless or placing your ability to retain ownership in jeopardy.
At the same time, if you are struggling with a mound of medical bills and consumer debt that you are unable to pay through your present income or the sale of non-essential possessions, it would be wise to look into debt consolidation through a home equity loan. There are two advantages to home equity loans over other kinds of debt. One, is that at this present time, one is generally able to borrow money against their home at a much lower rate of interest than what they are being charged on the other types of debt. There is a huge difference in 4.5% to 6% versus 18% to 25% plus late fees and penalties. The other advantage is the end of year, tax savings that are generally available for interest paid on a home mortgage.
When choosing a lender, you will need to find a reputable mortgage company that offers a competitive interest rate. Amazingly, the rates can vary widely at times and again, I must reiterate that if you are desperate for money you can be taken advantage of and find yourself locked into a long-term situation that is costing you far more than it should. If you have many blemishes on your credit, you may be denied alltogether or charged a higher than market interest rate. CAUTION! Don't let a lender convince you that just because you have had some recent credit problems, that they are the only ones that would consider lending to you and therefore you have to accept a rediculous rate of interest.
I have found an excellent, online mortgage company that is very aggressive in making loans to people who have suffered unexpected set-backs that have blemished their credit. PWS Mortgage has some of the most aggressive loan programs in the industry. Often times they can get you qualified when no other company can. Don't give up in despair. There is always a way if we will search for it in faith.
Click on this link, debt consolidation and fill out a quick form to allow the experts to go to work for you immediately with no obligation.
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