Credit Card Consolidation With My Mortgage

I do not have enough funds to pay for a debt consolidation company that's why i have decided to go for it myself. I've been told that what i can do is use my home's equity to pay for my bills. I am apprehensive about the idea but i decided to consult others like yourselves to see what you can say about this. Any ideas?

Well for one you'll be able to borrow for a lesser amount of interest. That's because the lenders consider that loan as secure as the original mortgage itself. Besides you have your house set up as security or collateral for the loan, that's why the rate is lesser.

Well one good thing abt getting a home equity loan is that the interest rate you'll be paying on it can be fully deductible on your income tax return.

Oh and I think another good thing with getting this kind of consolidation loan is that you have the freedom to choose which loan options you want done. Like you can get a fixed-rate loan and its interest wont change for the whole duration of the loan program, and you'll be able to repay it in fixed amounts in equal monthly installments for fifteen to thirty years. Am not 100%  sure abt the period of time for that tho

There's also the home equity line of credit. It basically works like a credit card because it's a revolving line of credit. It entails you to borrow up to a certain amount of money, sort of like a credit limit, and you'll only borrow whatever amount that you need in a certain period of time.

I agree that there are a number of legitimate points here, but getting a home equity loan actually carries with it quite a number of disadvantages as well. For one, if you default on the loan, you stand the chance of losing your home. That's how huge the risk is.

To begin with, mortgage lenders will not exactly be the genies that we would want them to be. Before they would agree to approve your application, they first need to estimate your home's market value, after which they will deduct the amount of your current mortgage from it (if I'm not mistaken). So even if you've already acquired enough equity on your home, it's likely that you will get the full amount of it.

Certain HEL's also are interest-only payments--that means that no matter how long you've been paying, your payments are only merely going towards interest, and have never been taken against the balance. It can be frustrating especially if you've been paying on the loan for quite some time.

What's more you may also run the risk of being victimized by a predatory lender. They may charge you with extorbitant interest rates and what's more they typically target consumers who have had bad credit or are currently having financial problems. They may force you into making payments you arent able to afford.

okay good. what else can i do if i am not able to use my mortgage then. do you have suggestions

Well one way for you to also go the DIY track is to settle your debt yourself. If you have debts with your creditors--from the unsecured ones at least--you can try to contact them and negotiate to pay for a lesser amount than the actual balance that they would want you to pay. By doing it yourself you'll need not to pay for third-party services but keep in mind that creditors tend to be really tough. They'll want you to pay it off in full--naturally. But you have to remember that you have to stand your ground and inform them that you can only offer a certain amount.

I have tried doing making an arrangement by myself and I did not succeed. The lender wanted me to pay it in full.

I do not think that consolidating credit cards with a mortgage is not a very good idea, if I may add. I am personally afraid of losing my house. There is so much risk involved in getting a mortgage loan.