How Do YOU Spell Debt Relief?
Are you sinking below the waves of debt, with only one nostril above the surface? Before you give up and accept bankruptcy, see which of these debt relief strategies would suit your situation best.
Home Equity Loans
If you have been paying your mortgage faithfully for many years, you may have enough equity in your home to qualify for a Home Equity Loan. This strategy uses a loan, separate from your mortgage, which is secured by your home ownership. All of your debts are consolidated and the equity loan pays the total debt off.
Disadvantage:
If you then fail to repay the Equity Loan, you run the risk of having your mortgage foreclosed. This means that you must be realistic when you are working out your budget when considering taking out a Home Equity Loan.
Refinancing Your Home
If you’d prefer to use this strategy, here is how it works. You negotiate a mortgage which includes the payout price of your other high interest debts as well as the remaining price on your home. If you do this, you must realize that the mortgage on your home is higher than the price of the home.
Consolidation of Credit Cards
Do the research to find out which credit card companies are currently offering a low, introductory interest rate. Approach the ones with the best offers and see which one suits your needs best. If you keep a close watch on Credit card Company’s low introductory rates, you can keep your debt with most beneficial company.
Disadvantage:
When you transfer your debt to a new company, to access the low interest rates, it is imperative that you close out the accounts with the initial companies. You run the risk of building up your debt to the original, high interest companies. This is not a wise move.
So, which of these three systems suits your needs and personality? How do you spell debt relief: Equity, refinancing or consolidation?