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Saturday, February 28, 2009

Re-Mortgage your Home to Save Money

By Denzel Abintenk

Credit card companies are trying harder than ever to attract new customers, if you have fairly reasonable credit then you will probably be used to the array of junk mail which lands on your mat every day. There are many different companies offering these credit cards, some of which we know very well. You will no doubt receive lots of junk mail from GE Capital, however it is worth bearing in mind that just because they use these big names it doesn't necessarily mean that they are part of that company.

This company may of started with the large company but spun off many years ago forming its own company. It is also possible to make your life easier by consolidating some of your debts, however you must be very careful when doing this otherwise you could make your financial situation worse than it already is. Many credit card companies make the idea of consolidating credit card debt very easy, however that may not always be true. Just keep your wits about you, if anything seems too good to be true, then it almost certainly is. Short term financial planning is key to turning your finances around.

You will probably be aware of the checks that you get sent through he post for large sums of money, this may make it seem like a very good option for eliminating debt from your life. However these checks are really only an advertising gimmick, they are just offering you a way to consolidate the debts that you have on credit cards by using the equity in your home as collateral.

It's a good idea to avoid equity lines of credit if you are consolidating your credit card loans, as this can put your property at risk for a fairly small loan. Lines of credit should be used for more expensive things like remodeling your home, or sending your children to college. You don't really want a short term debt held on a credit card to turn into a long term debt added onto your monthly mortgage repayments. It's best if you throw all of these 'brilliant' offers away as soon as you get them!


If you own your home then it might be a good idea to consider refinancing it in order to write off your credit card debt. This is one of the most extreme things that you can do to reduce your credit. This will mean that you have to continue paying mortgage repayments for longer than you otherwise would have. If you don't mind the idea of increasing the length of your mortgage then I suggest you go for it. You will be financing a much smaller portion of the house than when you originally purchased it. Mortgage repayments will probably be much lower than your current credit card repayments.

Credit card debt can be a major problem which can affect every aspect of your life, you should do everything that you can do in order to reduce your credit card debts and potentially write them off. If you are clever then you will be able to find a way to cope with your credit card debt.

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