Mortgage Refinancing for Credit Problems
Unfortunately, in this day of high consumer debt, more people than you'd like to think will find themselves with this problem.
Refinancing is one tried and true remedy for the problem of high interest costs on credit card or other consumer debt. And frankly, once you have submitted a payment late on a credit card, the level of interest you pay can be truly punishing. I've seen examples of almost 30% interest when a person was late on as little as one payment. You really have to read the fine print with credit cards.
I've known many people who have gotten into their credit problems with credit cards. While credit cards are a modern day "convenience" and many transactions are hard to do without them, these same cards have become a serious difficulty for many of us. Many economists are starting to sound the alarm on consumer credit, because the US is averaging more money on credit cards than the per capita income. In short, we spend more than we make, and no matter how you add that up, it can't continue for long.
Having said that, refinancing for credit or debt problems is not something that you should do without help. Lenders are likely to 'punish' the person who is in this situation with high interest rates, and other penalties and fees. This is where it can really pay off to seek a reputable credit counselling organization, which can act as your advocate. Many of these folks can work with you and with reputable lenders to consolidate your debt and have you come out the other end paying lower payments while still getting the debt paid off faster than you would have otherwise.
Are any of these scenarios sounding a little too familiar? Take action sooner as opposed to later. Unfortunately, credit problems often get worse before they get better. The sooner you put out a call for help, the sooner you will be moving in the right direction with your finances. A reputable credit-counselling agency can help your financial situation get better much more quickly.
Ultimately, you don't want to lose your home if you own one. If you do own a home, you are in a much better position than many who are fighting with credit problems. You can use that home to help boost you out of the hole. Now's the time to do it.