- June 6, 2017
- Posted by: steve
- Categories: debt consolidation, mortgage articles, mortgage news, refinance
Are you thinking about refinancing your home in the future? Keep reading to learn about the benefits of debt consolidation refinance.
Debt consolidation refinance can be the key to consolidating financial sorrows.
Taking this step helps avoids filing for bankruptcy. There’s no reason to be part of that Florida statistic.
Take control of your hopes and dreams by taking control of financial future before it spirals out of control.
Do it by using your mortgage to reduce your monthly payments.
Here’s what you need to know about Florida debt consolidation refinance and your mortgage.
Let’s start with who needs debt consolidation refinance.
Who Needs to Consider Consolidation
Debt consolidation refinance works great for people who
- owe $10,000 or more.
- keep getting harassing phone calls or letters
- find themselves unable to lower their interest rates (that’s mostly anyone trying to pay off credit card debt.)
In fact, high-interest rates are a major reason that most people turn to debt consolidation refinance.
Don’t quit reading now.
It seems like we’re just hitting you with bad news, but you have to keep reading to understand how stressful the situation is.
High Interest Means High Stress
The interest rate or fees relating to debt is what makes debt so hard to pay.
Many of us wish creditors would do away with interest rates and fees. That’s not going to happen anytime soon.
And don’t think you can pay down interest rates and fees just by working hard.
Even if you’re working hard, most people only pay 2-3% of their total debt balance. That’s nothing.
Creditors love this because it increases interest rates and fees so that they make more money.
All the while, the debtor loses money. It’s like being stuck in quicksand. There’s nothing left to do but sink.
This takes a toll on
- your personal life
- your physical health
- your psychological well-being.
It can even put your job at risk because your mind is constantly thinking about all the money you owe rather than functioning well on the job.
Debt consolidation refinance gets rid of all the debtors by combining them all into one bill and one creditor.
This option offers a much lower interest rate, too. One that won’t stress you out.
Don’t make your creditors richer. Instead, start setting up your financial future by consolidating your bill. This puts you on the path to success.
Or as we say in Florida, the path to the beach.
It’s time you understood why debt consolidation refinance works.
Defining Debt Consolidation Refinance
Consumers who opt to do a debt consolidation refinance group unsecured debts into one bill that they pay via a loan. The debts they roll into one bill include
- credit cards
- medical bills
- personal loans.
There are several ways to refinance.
Refinancing debt into one bill usually involves one of the following options:
- transferring debt to a zero or low-interest credit card
- taking out a debt consolidation loan
- paying back your debt through a debt repayment plan
- refinancing your house via a new mortgage.
A consolidation gets debtors out of the red quickly. This one of the best reasons to do it. Otherwise, the debt impedes both the present and the future.
If you’re a homeowner, debt consolidation refinance works particularly well.
In fact, a new mortgage is one of the best ways to end your stress.
Why Consolidation Via Mortgage Works Best
Homeowners benefit especially well from debt consolidation refinance for several reasons
If you’ve got sizeable equity and interest rates are affordable, refinancing your home makes a lot of sense.
After all, you purchased your home as an investment. Think of your home as a piggy bank that you live in.
Sure, it’s more than an investment. It’s where you spend time with family and friends.
It’s the place that safeguards all the people and things that are important to you.
Well, instead of thinking of it as a structure that protects physically, also think of it as a protector that guards your financial future, too.
And that of your family’s.
Keep in mind that:
- Mortgage loans and refinancing offer superior rates to credit cards. Credit cards will negotiate, but they do so to their advantage. Their rates are always higher than anything to do with your mortgage.
- That’s because credit card debt is considered riskier than mortgage debt. Homeowners have proven their worth with their first mortgage.
- You can save money on closing costs if you do the research and use a reputable company.
- It’s sometimes possible to deduct the interest rates on home loans. Credit cards offer no such deduction options.
- Applying for a mortgage can help with taxes. You might be able to get a sizable write-off. You will not get one via bankruptcy.
You will not get any chance of a write off by paying the bare minimum on credit card interest rate
There are other perks to consider, too.
Other Ways a New Mortgage Helps with Creditors
If you keep trying to pay off your personal debt the old way, then you never know exactly how much money you need to have from month to month.
Their rates can change frequently.
And they can decide to collect at any time. If you keep paying the bare minimum, you may find that the interest rates max out the credit card.
This is when credit cards can decide to play dirty by filing a lawsuit against you.
if this happens, you may need to hire a lawyer which costs more money. You may find yourself unwisely representing yourself in court.
This is not good. There are too many financial regulations that the average person doesn’t know.
Avoid all that by choosing a debt consolidation refinance.
Look at all the ways mortgage options help your financial future.
If you’re going to do this, you have to be serious about taking control.
Helpful Advice for Managing Finances
A mortgage can help you get a grip on your financial nightmare.
However, if you keep spending recklessly, refinancing is not going to help.
Of course, sometimes life throws us curveballs like
- medical emergencies
People who find themselves in those situations are usually not reckless spenders.
But if credit card debt results from living the high life on a limited budget, then it’s time to reevaluate your spending habits.
Otherwise, a debt consolidation refinance is not going to help.
You need to make some changes
How to Streamline Your Spending Habits
The following tips can help you manage the habits that got you into debt. Remember, you don’t want to default on anything to do with your mortgage.
If you don’t think you can change your habits on your own, then maybe seeing a professional counselor is a good idea.
Your financial future depends on it. Your family depends on it.
But if you can do it on your own, then start by doing the following.
Stay In More Often
No, doesn’t mean you’ll never enjoy a night out on the town again. it just means you don’t go out all the time.
Learn to cook good meals at home. This can also strengthen your family relationships, help you lose weight and keep you healthy.
All of this saves money in the long term.
Use Cash Instead of Plastic
Credit cards have a way of making us think we’re not really spending.
Cash makes us more aware of the money we’re losing.
If it’s really important, use a credit card. But use cash for daily expenses like coffee, groceries, clothes.
Watching the green dwindle saves money.
Rethink Your Ideas of Happiness
Happiness is not found in material items.
Happiness is not keeping up with The Jones.
Happiness is not struggling to make ends meet.
If you want to be truly happy, you learn to pay back your debts and show those you love that you are a responsible person.
Do that by applying for debt consolidation refinance and rethinking what matters.
Make a Budget
Whether you’re single or raising a family with a partner, a budget works wonders for your financial health.
It can show you where you spend too much and how to save for future goals like;
- travel investing
Besides, mortgage lenders like to see that you are making an effort to reform your spending habits. This makes you a much more viable option for debt consolidation refinancing approval.
Let Us Give You a Hand Out of the Quicksand
This process requires a company that understands how to take care of its clients.
New Florida Mortgage is that company. We’ve helped hundred of clients regain their financial footing during treacherous times.
We’ve been in business for decades, providing solid customer service and helping our clients regain their financial stability.
In addition to debt consolidation refinance, we offer other services.
No matter what stage of your financial journey you’re on, whether it’s your first mortgage or your second, we can sit down and discuss your options.
We’ll be honest about whether you should go the debt consolidation refinance route with your mortgage. If not, we might be able to suggest another solution.
Florida residents who need a debt consolidation refinance should contact us today to learn about our mortgage options.