Sunday, August 23rd, 2009
debt relief programs vs refinancing?
billnsuegal@sbcglobal.net asked:
For the past couple years we have gotten so over extended that we cannot keep up w/mortgage, car payments, utilities, let alone maxed out credit cards. Up until this time our credit was always excellent, but due to late payments, over limit fees, etc…not only has our credit score fallen drastically, but we cannot even seem to make all minimum payments with anthing left over. We have looked into both a debt relief plan (which I know nothing about), and alos re-financing which was the last thing we wanted to do. Our first mortgage only has approx. 9 years left, but a home equity loan we took on in a rush, has another 27 yrs, and a much higher rate than the first. Can’t decide if we should roll all (both mortgages & all cc expenses) into one, or try the dept relief program to pay of credit cards, in what they “say” could be within 3-5 yrs. Anyone know how these work?
For the past couple years we have gotten so over extended that we cannot keep up w/mortgage, car payments, utilities, let alone maxed out credit cards. Up until this time our credit was always excellent, but due to late payments, over limit fees, etc…not only has our credit score fallen drastically, but we cannot even seem to make all minimum payments with anthing left over. We have looked into both a debt relief plan (which I know nothing about), and alos re-financing which was the last thing we wanted to do. Our first mortgage only has approx. 9 years left, but a home equity loan we took on in a rush, has another 27 yrs, and a much higher rate than the first. Can’t decide if we should roll all (both mortgages & all cc expenses) into one, or try the dept relief program to pay of credit cards, in what they “say” could be within 3-5 yrs. Anyone know how these work?
August 23rd, 2009 at 2:03 am
Sounds to me like you have done your homework! Heres the thing. ANY loan taken against equity in your home should only be used to create wealth, not pay debt. I am not trying to insult your intelligence, just laying out the options as I can tell that you already know this. Paying down the debt with a debt management plan is one of the best options available, and yes, you can pay it off in 3-4 years or less, but it shouldn’t take 5! That’s a new one to me. For me to explain to you how they work on this forum would take me 24 hours of typing, but since i have been through this exact thing myself a few years back, and I spend most of my free time doing things like this (answering questions and helping) I have taken the time to create a web page dedicated to debt reduction options, how they all work and the pros and cons involved with each.
Visit the page, and please read the entire thing. I know it’s a lot, but you will make a wiser decision. I chose debt management myself…thank God
Good luck and God bless!
If you have any more questions, contact Dave at