Home owners in bad debt situation need to consider debt consolidation mortgage refinance as one of the options available to bail them out. You are in a bad debt situation if you have several unpaid bills, outstanding credit card dues that have hefty late payment penalties and your income does not allow you to meet even the minimum payments on most of them. Are your creditors getting impatient and showing it? If you are lucky enough to own a home you might want to learn more about debt consolidation mortgage refinance.
It can be tough when you have several debts to pay off each month and your income is forcing you to delay paying off some or most of your bills. Delay in pay backs can be expensive as they may have penalties or high interest rates that see to it that you get trapped deeper in debt. When you opt for debt consolidation mortgage refinance you consolidate all your outstanding dues into one debt. You can work out a loan that is more affordable on account of lower interest rates and easier EMIs, with tenures ranging from 5-15 years. You get to pay off high interest debt and can forget about dealing with the many creditors. The interest you pay towards the loan is tax deductible and your credit score improves as you can easily make repayments. If you have built equity you can use the extra cash to pay off some of the dues or use it to make improvements on your home which will further add to its equity.
You can choose to obtain the loan from the creditor who granted you the first mortgage or can secure it from another financial institution. Be sure to consider the type of interest rate offered, fixed or variable and check out what fees are associated with such loans. It always pays to make informed decisions instead of rushing to the first firm that you come across offering debt consolidation services. You will also benefit by having a conversation with a debt consolidation expert. You can also do some investigation yourself by getting online and applying for free quotes from a few reliable firms.
Debt can be bad but when you take the right decisions at the right time you will find that dealing with bad debt is not that difficult a task. If you have refinanced your mortgage based on your needs, you will find that making the monthly payout is no longer unaffordable instead you are able to pay off the debt, improve your credit score and get to keep your home and dignity intact.