Debt Consolidation

Everyone has heard of debt consolidation and most people have been through a time in their life where they have needed it. This is because things come up and people must lean on credit cards and loans to make it through. There are different methods of debt consolidation, but the most common is using home equity!

Some of the advantages to consolidating are as follows:

1. You can lower your overall monthly payments.

2. You can lower the total interest that you pay.

3. You can pay off your debt in a more timely fashion.

4. You can relieve some stress.

Some things to think about when consolidating:

1. Make sure you use a lender that you trust.

2. Find out what your home is realistically worth and DO NOT follow through with a loan that

puts your home over 100% loan to value. If you are forced to sell you want to be in a

position to be able to at least pay off your loan. Don't be surprised to find a lender out there

that says your home is worth more and they can pay off more of your debt! If it sounds too

good to be true, it probably is!

3. Do some soul searching about how long you plan on being in your home. This information will

help you make the best decision about what type of debt consolidation is best for you!

4. Don't stretch your debt out on a really long term. Keep in mind how many years you have

left on your current 1st mortgage. If you have 15 years left, don't pay off some debt and

stretch it back to 30 years if you can avoid it. The super low payment may sound great, but

remember that every financial situation is different! I'm sure you get my point here. This

goes back to analyzing your situation and doing what is best for you.

By considering these simple points, you can feel comfortable about your decision. Never let a lender railroad you into something that isn't good for you. Debt consolidation is a great thing and has helped millions of people pay off their debt. Just be smart and follow your plan! Always keep in mind that once you consolidate, they debt is not gone! You have only transferred it! Don't fall into the trap of feeling "free" again and go run up more credit cards. Remember what type of spending habits got you a jam and change them!

Good luck to anyone that is consolidating and feel free to post any questions you might have!

Brought to you by

Professional Mortgage Group, Inc.

"Your Columbia, MO Mortgage Broker"