The Ultimate Debt Consolidation Refinance

This week, I'd like to share some customer experiences with one of the most
popular new strategies in debt consolidation refinance. Over the last few
months, a select few in the mortgage banking industry have developed
programs which allow borrowers to accomplish the 3 greatest goals of debt
consolidation: Get Cash to Pay Off High Interest Debt, Lower the Overall
Monthly Minimum Payment, and Boost Cash Flow to allow borrowers to save up
money in a short amount of time. The benefits are nearly indisputable:
Higher Credit Scores, Lower Monthly Minimums, and Greater Flexibility. But
one of the biggest criticism of debt consolidation is that borrowers who
consolidated their debts were still not saving enough money after the
refinance, and needed to tap into home equity repeatedly to achieve their
final goal. What if I told you that there is a new loan product available
today which allows you to do all of these things, but also allows you to
Make No Payments for 90 Days, with 0% interest due over the introductory
period?

David in California said what many of you just said, that's too good to be
true! If you can do that, sign me up! David had a typical Southern
California situation, he works in sales, makes a decent living, has a young
family of 5 and about $30,000 of credit card and other debt, which cost
about $1100 a month in minimum payments just to cover the finance charges on
his revolving debt. But David, like a lot of people in California, has seen
solid appreciation year after year in the real estate market, and his home,
which he purchased for about $350,000 in early 2003, was appraised for over
$500,000 a bit more than 3 months ago. He owed $300,000 on the house, on a
traditional principal and interest mortgage with a minimum payment of $2100
a month. Because of the relatively high level of consumer revolving debt,
David's credit scores had gone down to about 630 even though he was making
all of his payments on time.

When David called us, his loan officer walked through each of David's credit
card bills a with him, and together they determined that David was paying
and average interest rate of over 27% on his credit card payments, because
his credit card companies had raised his rates as his overall debts had
increased, which had hurt his credit scores badly. To make matters worse,
David, like a growing number of Americans, wasn't saving any money. If he
got sick, had a slow quarter, or was otherwise unable to work for any
meaningful amount of time, he would be at risk of financial ruin.

We looked at the whole situation, and used this new debt consolidation
mortgage refinancing strategy to show David how he could pay off all $30,000
of his revolving debt and take out an additional $20,000 or so to provide a
small cushion, partially to be used for value-adding home improvement.
Remember, David's old minimum payments were: $2100/month for the mortgage +
$1100/month for a total of $3300/month, his credit was getting worse each
month and he had no cash in the bank. After refinancing, David's new minimum
monthly payment was consolidated and reduced to Less Than $1300 per month
Total! And he now had $20,000 in the bank which he wisely put into a high
yield savings account earning 5.25% until he needed it. This monthly minimum
payment being $2000 a month lower is amazing in and of itself, however what
makes this product revolutionary is that for the first 90 days, David had
Zero Percent Interest and No Payments due, allowing him to save substantial
money each month. He socked it away each month for
3 months, and now 90 days after his debt consolidation he's managed to save
an additional $10,000, which combined with the $20,000 he cashed out means
he went from almost nothing in savings to over $30,000 in the bank earning
solid interest.

But what about David's credit? Now, it's only been a bit more than 90 days
since the refinance closed, but I am happy to say (as is David!) that his
three scores are now 667, 684, and the high score is 703! Why? His debt
ratio is down, and his debt to income ratio is way down too. Combined with a
little advice from our credit specialists, the debt consolidation refinance
has been the difference for David. He went from a total minimum payment of
$3300 a month down to under $1300 a month. He went from 0 in the bank to
Zero Percent and Zero Payments for 90 Days, and put over $30,000 in the bank
between the refinance and the resulting monthly savings. Not only does he
have some money saved up for a rainy day, the new, lower payment is much
easier to make even when times get tough, dramatically lowering his risk of
missing a payment. And because his credit scores have already improved and
will continue to do so, any new car payments or loans he takes out over the
next couple of years will be substantially less expensive, allowing him to
qualify for low cost car leases and zero-interest, cash back credit cards.

So through this illustration, we've explored some of the benefits of using a
minimum payment mortgage refinance with no payments & no interest due for 90
days as a debt consolidation tool. More so than other type of mortgage
refinance, this new loan and other mortgages like it help borrowers achieve
all of the key goals of debt consolidation, offering great payments and a
real "vacation" from making payments. If you ask David and other borrowers
like him what they like the most about the product, they'll tell you it's
the "breathing room", the ability to get out from under debt and take a
couple of months off of worrying about making the payment so they can
concentrate on organizing their finances and improving their situations. We
can all use that space from time to time, and I agree with our borrowers
about the importance of this feature.

There are a lot of reasons we consider the "Zero Interest/Zero Payments for
90 Days" plan the ultimate debt consolidation mortgage refinancing tool.
There are some limitations though, which do vary somewhat from lender to
lender: While you don't need perfect credit, a minimum middle credit score
of 620 is required to qualify for the 90 days with no payments option.
You can borrow up to 80% of the value of your home with no payments for 90
days, with the balance above 80% rolled into a separate second mortgage (or
you can keep your existing second mortgage if you have one). You are allowed
up to one 30 day mortgage late within the last 12 months, however you cannot
qualify if you have multiple late mortgage payments showing on your credit
report over the last 12 to 24 months, and this program is not offered in all
states. Depending on your credit, you may be able to state your income, or
even qualify without considering your income. Contact your mortgage
professional for more information, and if they don't have a program that
allows you to pay off your debts, lower your payments, and get 3 months off
of making mortgage payments all in one, find yourself a new lender!

Our next article in this series will tell the story of a single mother who
has impressed us greatly with the way in which she's secured her family's
financial situation with this loan immediately following a challenging
divorce. If you have any questions about this article, please feel free to
contact us, or visit us online.

About The Author: Tristan Hunt is a seasoned financial professional with a
wealth of experience in the mortgage industry, advising clients on debt
consolidation, refinancing & investor loans. Phone: 800-515-8443 Website:
http://www.RefinanceOne.net

Why To Consolidate Debt

I know you're looking at that plasma TV and thinking of buying yourself a
nice early birthday present. You can just imagine it on that wall in your
living room. In fact you've been saving a spot for it for a year now. But
there's really no way that you could afford such a thing. Unless.you do have
that little piece of plastic in your pocket just screaming to be used.

Besides, this is the reason you have a card, in case of an emergency. And,
that big empty space is an emergency, it must be filled. Of course you'll
have a big fat balance on your statement that there's no way you can pay,
but what the heck.
Only live once right?

Now Stop and Listen Carefully!

How silly do you sound when you begin thinking thoughts like these? This is
what happens in millions of heads around the world daily, and this lack of
debt management is hurting way too many people, so don't get sucked into it
too.

It's crazy that we think that we can just buy something that we can never
afford just because we can charge it. Tell me, what kind of debt management
is that?

Well, if you need help with your credit cards and debt, don't feel bad
because you're definitely not alone in this. In fact, I remember getting my
first card, I got myself in the same situation, and this is after I told
myself that I would never use the silly thing.

Well, except for emergencies that is.

Then came college, and everything seemed to be an emergency. I was on my own
for the first time, and not wanting to bother my parents, and wanting to
appear "responsible" I just kept on racking up the balance on the darn
thing. Oh but that was okay I would convince myself, because soon enough I
would graduate with my bachelors and laugh at this debt I was racking up.

This may be how it ends up for some people, but for most, myself included
the exact opposite is true. I actually come out the other end with a good
career, but I didn't consider how much actually living in the real world
costs, and very soon my budget had met it's match.

Now I had to find help with my debt.

The one thing I did that was quite smart was to transfer the debt to a lower
interest card. It helped me a little, but it really was still hard keeping
up.

I then began my search for a reliable company to help me consolidate debt
even more. I searched online and found quite a few companies to help me. The
one that I went with, actually helped cut some of my balances by up to 40%,
and then got me on a plan with on low monthly payment that was easy to
afford.

So, don't be like me and get yourself into a mess. Start managing debt
wisely early on, and you'll avoid a rough ride that you don't need.

About The Author: Robert Carlton writes essentially for
http://www.debtania.com , a website on money management and assets. You can
come across his publications over at
http://www.debtania.com/managingcreditcard.html and many different sources
for managing credit card debt tips.

Credit Card Debt: Do You Need Credit Help?

If you have credit card debt it is important to take its measure from
time-to-time to determine whether or not you have a problem with your debt.
If you are carrying a balance on more than one card (or simply a sizable
balance on one card) then you could have a problem.

There are five reasons why you should seek credit help to deal with your
credit card debt.

The biggest reason is that credit card debt can affect your credit score
which in turn impacts your ability to borrow money for everything from your
car to your home. High credit card debt can lower your credit score and
raise your interest rates. A problem with late credit card payments or high
amounts of debt can make you appear to be a poor risk for credit to many
finance companies.

However, almost as important is the way that credit card debt makes you
feel. While money cannot buy happiness, credit card debt certainly buys
unhappiness. The knowledge that you have a large debt can destroy your self
esteem and add a lot of stress to your life. If you dread the arrival of the
credit card bill in the mail then you have a problem with debt that you need
to address. Owing money can also add a lot of pressure and stress on a
marriage.

Another important reason to resolve your credit card debt is that by
avoiding the problem or simply paying minimum amounts you will never be
free. Most minimum payments do not do much more than pay for the interest.
While many people make paying their credit cards a low priority it should
actually be a top priority. Yes, your mortgage payment is important because
you do not want to lose your home but that is good debt as it helps your
credit rating and your taxes. Credit card debt does nothing for you at all.

Owing money on your credit cards is also a self perpetuating problem. Every
time you charge instead of paying with cash and every time you do not pay
off the full balance when it comes due you are perpetuating your problem
with debt. You need to learn better money habits or you will never solve
your problem with credit card debt.

Finally, an important reason to start paying with cash, check or debit card
is that by paying-as-you-go for your lifestyle you will be modeling
responsible behavior for the next generation.

Take these five reasons to heart and take stock of your own financial
situation to determine whether or not you have a credit card debt problem.

About The Author: Deanna Mascle shares more tips about Credit Card Debt and
Credit Repair in her blog at http://answersaboutcredit.com

Top 2 Reasons To Use Home Equity Loans For Debt Consolidation

Generations past used to enjoy tax benefits on their interest payments on
certain loans such as consumer loans.
Unfortunately, these tax benefits did not extend to this current generation,
and even as we cough up a huge amount every month on interest payments on
various debts such as your credit card debts, you can no longer enjoy the
same level of tax relief. However, there is another option today that will
allow you to consolidate all your high interest debts into one low interest
loan and even to secure good tax benefits for repaying the interest on it.
This option is the home equity loan, and it is open to any homeowner, who
can then use the loan for more efficient debt management.

Homeowners often obtain home equity loans for the purpose of restructuring
or repairing the house. It then becomes a kind of long-term investment.
However, you may hesitate at the thought of putting your house up yet again
for a second mortgage. But if you are to enjoy lower interest payments and
some tax benefits, you should not hesitate at all at taking this loan, or
even wasting your time looking into other forms of loans to consolidate your
debts. If you are already struggling with managing all you debts, then a
home equity loan is your best solution for refinancing and managing your
otherwise unmanageable debt.

By arranging to refinance your debt through a home equity loan, you are not
further adding to your existing debt amount. This debt consolidation plan
allows you to transfer all your various debts such as your credit card
debts, with all their different due dates and interest rates, to one lender.
For the repayment of this consolidated second loan you are paying a lower
interest rate as a part of a fixed repayment plan.

Thus the convenience of making a single payment at a lower interest rate to
one lending institution is just one of the benefits of home equity loans. In
addition to this convenience, you also get to enjoy a tax benefit. This tax
benefit along with the financial gains of paying a lot less interest,
indirectly adds to your net gain.

Before committing to home equity loan you should make sure that you are in a
position to pay back all the debts within the given period. Otherwise you
will be putting your home at stake. So be careful about your spending
habits, and be particularly wary of accumulating debts on your credit card.

About The Author: For more information on Home Equity Loan, check out
Susan's site at http://www.quickhomeequityloan.info
and http://www.quickhomeequityloan.info/home-equity-loan.php.
You can read up on more Home Equity Loan articles at
http://www.mynicheblog.info.

Something about California home Loan refinance rate

A mortgage is nothing but the usage of property as the security to pay any
type of debt. Although the term mortgage is often referred to any type of
legal device that is used in securing the property, mortgage is generally
used in the sense of debt that is secured by the mortgage.

Home Loan Refinance:

People always find it very difficult to deal with higher interest debts. One
easy and good way to lower your interest rates and even lower your payments
is to go for debt consolidation. If you are suffering from a high interest
rate mortgage then you can get your debt consolidation by means of home loan
refinance.

Home Equity:

If you have a bit of real equity in your home, it indirectly means that you
have made enough payments to gain that equity and as the time passes by the
value of your home may also raise. If that equity is quite substantial you
can easily use for debt consolidation.

Debt Consolidation:

The whole process goes like this: Now, go ahead and get a home loan
refinance for the amount which your home worth now. You can pay your old
home loan by using a part of your new home loan. You can pay your other
debts by using the money left over from the home loan refinance.

Money Saving Benefits:

There is a variety of money saving benefits which you enjoy when you do home
loan refinance in California. The main reason for this is, there are several
alternatives to your current home loan.

You can save very heavily on the interest rates, if you use home loan
refinance in a proper way. For example, if you use your money left over to
pay your credit cards debts (which always have very high interest rates)
then you save very heavily. Likewise you can use this loan quite
intelligently to reduce your interest rates.

Home loan refinance can also help you in reducing your payments. With home
loan refinance, you have cleared all your multiple debts and you are left
only with one home loan, which is always going to take lesser payments.
Hence, not only that you save good amount of money in interest rates, but
you also enjoy good amount of money in your pocket every now and then.

With all the above listed benefits it is always a better idea to go for home
loan refinance, especially in California.

----------------------------------------------------
Darren Dunner is the author of this article. Find more information about the
same at http://www.theabclending.com/ and http://www.iloanresource.com

Bankruptcy Avoidance - Eliminating Debt

Americans generally have one thing in common - debt. Were you expecting
something else? Sadly, whatever plans we make or whatever we claim when we
are in our youth, we manage to some how get into debt. For most people,
especially applies to student type loans and credit cards. Yes, college
somehow changes how we do things. Next thing you know you are married with
some children, a hefty mortgage, car repayments and mountains of credit card
type debts. It's now time to eliminate credit card debt today. Of course you
must be asking how this can be done, and get it done today? Well, hopefully
you are a movie fan because 'Heat' isn't so far from the truth.
Eliminating credit card debt that way is foolhardy because jail is not where
you want to go. Your interest would go even higher.
Ouch!

Yes, everyone wants to know the secret to getting rid of credit card debts
the fastest way possible. That goes without saying.
The question should be - how do we start? For some of you this will be a
major challenge, but for me it's simple. Frankly the most sensible thing to
do right now is to evaluate how many cards you have and how much interest
you are paying on them.
Yes, write it down now! How miserable does it appear? Now you need to get
onto the Internet.

The Internet is a fantastic tool for searching and researching eliminating
this type of debt permanently. So open up that search engine and let's learn
how to consolidate debt. You need to understand how to consolidate all those
ugly balances into one much lower monthly repayment. The trump card is the
interest, lower interest than you are currently dealing with.
You may need to consider getting a loan or doing a transfer of your balances
onto one single low interest card. The key is APR. High interest as you know
is a killer. Why pay out more than you have to, right? This exercise is
about getting rid of that debt now.

The fact is that paying off this type of debt takes time. Fast is not
necessarily fast, but a slower and necessary process.
The important thing is to lower those payments. With the help of the
Internet you can research the best ways to consolidate your credit card
balances and avoid bankruptcy, maybe get some advice about debt management.
No time like the present, so get to it!

About The Author: Johnathan Bakers publishes for the most part for
http://www.debtania.com , an internet site with information about investing
and debt relief. You can come across his articles over at
http://www.debtania.com/howtoeliminate.html
and other sources for how to eliminate credit card debt information.

Avoiding Bankruptcy With Credit Card Debt Relief

Are you looking at that amazing new plasma type television in your
electronic store´s window? Isn´t it something? It would look absolutely
wonderful hanging on your wall right now, right? Oh, so you cannot really
afford it, but that does not matter to you right now? You do have a credit
card, and it´s okay to just put it on the plastic and go home with your new
toy, right? That´s the American thing to do. However, your bill has arrived
and the credit card amount you have to pay is big, very big, but that does
not matter, does it? You better stop now and think again.

The overwhelming problem with society´s current mentality is that for some
strange reason we think we can buy things that we really cannot afford. This
is a major mistake on our parts. It´s high time that we changed our
foolhardy attitudes. It´s time to get the help we need with credit card debt
and simply stop spending what we don´t have.

So, you need help in dealing with that niggling and worrying credit card
debt? That´s not a problem. You are not the first or the last person to be
in this self-inflicted mess. We have all done this. We get our first credit
card and assure ourselves that we will never need to use it, except maybe
for emergencies. However, that didn't happen, did it? I was in college once,
had the same attitude, and started using mine on a regular basis. I strongly
imagine that this seems quite a familiar situation to you. You like myself
thought it wouldn't be a problem. We could add that bill or quick purchase
to our credit card and everything would miraculously not suffer as a result.
Yes, the debt incurred would be in the thousands, but soon we would have
that well paid career and could clear the debt right away. Right? I guess we
were all wrong because the reality is that life doesn't always work the way
we planned it.
Before I knew it I was in the same position as you, in dire need of credit
card debt assistance. Yes, I got that career, but not in the time frame I
had hoped for.

Thankfully, finding credit card debt assistance is as easy as accessing your
computer and the Internet. Start by searching for credit card debt
consolidation and debt management. It is possible to stop struggling making
ends meet and enjoy lower monthly payments. This is one of the best ways to
avoid bankruptcy.

About The Author: Jack Blacksmith pens primarily for http://www.debtania.com
, a web publication with topics around investing and debt relief. Writing
for works (e.g.
http://www.debtania.com/howtoeliminate.html on eliminate credit card debt )
he showed his expertise in the field.

How Debt Relief Affects Your Mortgage Choice

The interest only loan that you have available to you today, is the same one
that many Americans since the early 20's had available to them and used. So,
your grandparents, or there parents perhaps may have looked for a bit of
debt relief with the interest only loan themselves.

There were some differences in the loans from that time to now however.
Let's take a look at some of those differences. This may help us become
better educated so we may more efficiently shop for these loans.

In the 20's the interest only loan was more of a pure product, meaning that
they were interest only for the loans life. So, only interest payments and
no principal had been paid. This seemed to be a good system until the stock
market crashed, and the Great Depression came along. This left a number of
lending institutions with a mortgage that was foreclosed, and with no cash.
At this point most lenders decided that it would be a better idea to just
give out more traditional loans so that equity could be built up. This
helped the homeowner have a sort of savings to build wealth in. It helped
the bankers as well with their mortgage balances being less outstanding.

The interest only loan these days is not well suited for everybody, and can
be a detriment to many homeowners, however for some it is a suitable match,
for instance investors who will probably flip the property anyways, or
others who will likely be moving sooner than later, and will have no ill
effect of the fact that they're not building any equity in the home.

Nowadays, when lenders offer the interest only loan, they're required to
ensure that no more than half of the loan can be applied to the interest
only portion. This helps avoid the same tragedy that was faced in the 20's
and the stock market crash.
This type of mortgage is more likely t be appealing to the compulsive
shopper who insists on instant gratification, with no solid debt management
skills.

As well as putting many borrowers in a position where they own a home, but
really have no solid equity in it, it also puts them in a spot where they
cannot eventually afford the payments when the principal portion of loan
does kick in.

These types of loans, plus the booming of the real estate market has
increased purchasing power, and allowed many wannabe homebuyers to make that
dream come true. However, every bubble must eventually pop, and the mortgage
companies must feel the affects as well.

On the flip side is the purchaser, who may not be able to withstand the
consequences, should say the home is suddenly not worth the original amount
of the loan.

The one that gets the most benefits out of this loan is by far the lender,
and the risk goes mostly to the homeowner. Please practice responsible money
skills, and be very selective on the type of mortgage that you choose to go
with.

About The Author: Focusing on news and information about managing money,
Peter J. Wilson is publishing almost entirely for http://www.debtania.com .
His writings on consolidate debt are found on
http://www.debtania.com/personalloan.html as well as other web pages.