Marina Thomas
Financial turmoil is a situation that can hit just about anyone. It is unpredictable and sometimes inevitable especially if you are a business man/woman or a stakeholder. If your line of work puts you in situations where you have to take big financial riskslike investing in a large amount of money, you need to be ready for anything. Failing to plan ahead can lead a financial crisis where you will not even be able to pay for the most essential bills in your life.
Moving on, financial turmoilis not just experienced by business men and women but also ordinary citizens who cannot control their credit card spending’s. As much as the plastic cards have reduced the hassle of walking around with heavy cash, it has also made it easier for the card holders to take small loan for various expenses. In some unfortunate instances, the debtors are unable to pay for the loans leaving them with nothing but just an option to consolidate the debts.
And although there are many options in the market for a credit card debt consolidation, a good way to finish this nightmare is to consolidate the debt with your home equity loan. However, most people will ask; why use my home as collateral and risk confiscation of the property? Here are reasons why you should consider debt consolidation with your home mortgage loan;
- Cancellation of mortgage interest – in most cases it is almost impossible to eliminate the credit card fee on your taxes, right? But the gain with mortgage interest is the fact that you can reduce your interest payments annually from your annual statement of income.For most citizens, the interest rate deductions on their mortgages saves some significant amount in their taxes every year. That said, if you choose to use your home to consolidate your debts, you will be writing off most of your mortgage interest. Though it is impossible to deduct interest on unsecured credit cards, this is bound to change when you consolidate a credit card debt with a home mortgage loan.
- Improved credit score– Refinancing your mortgage to consolidate a credit card debt will be ideal for you especially if you have a lot of equity in your home. What am I saying? Well, if your home poses a significant market value, you can confidently refinance the home to pay off your debts. thinking about it, this will reflect well on your credit score because at the end of the day, when your credit card debts go down, there is a remarkable boost in your credit score.
- Caps student debts – as you well know, credit card debts are not the only debts that people out there are struggling with. In fact, a great majority of citizens are not only worried about their credit card debts but their college/student loans as well. That said, take advantage now that the mortgage interest rates are still low.Believe you me, refinancing your home might reduce the amount you need to borrow for a student loan. And it is for this reason that most millennials are using mortgage loans to get out of debts.
- Lesser monthly payments–let’s be honest; dealing with a credit card debt means that you are probably paying off several accounts every month. It is also factual that dealing with several accounts and paying them off monthly can be hectic, inconsistent and erratic. And to make matters worse, late payments attract an extra charge which will strain your finances more.
Luckily, with a home mortgage refinance, you will be making one monthly payment for all your debts. This is an option that guarantees, consistency and convenience. And what is more, the mortgage refinancing for credit card debts is known to save on interest as well.
- Guarantees fixed monthly payments – now that you will be pulling cash out of your home, you can rest assured that there will be no late payments or non-payments at all. Through home refinancing, you will be able to make fixed monthly payments on all your debts over the expected period of time. So now, instead of struggling to pay off your debts with your monthly income and stressing over your revolving balance every time, you can now opt for a fixed payment with a home mortgage loan.
In conclusion, it is now clear that mortgage refinancing is an option that comes with a lot of benefits. And although the benefits may vary from one debtor to another, it is best that you find a mortgage plan that is right for you. And on that note, if you are considering refinancing your home, reach out to reliable loan officers ad refinancing experts for some advice and professional guidance.
