Professional help is available to help you get out of it.
The three main types of professional services are credit counseling, debt management and debt settlement.
Those with enough equity in their homes have been able to substantially reduce the monthly payments on credit card debt, student loans and personal loans, says Michael Moskowitz, president of Equity Now, a mortgage bank in New York City."I wouldn't recommend it to someone who is going to run up their credit cards again," he says."If that's the case, you need financial counseling, but for people who will not do that -- who had medical expenses, business expenses and ran up their credit cards -- a debt consolidation mortgage is a good solution."He cites the case of a client who had a mortgage-free investment house and more than ,000 in credit card debt.“Generally when you decide to finance something, it’s a good idea to structure the length of the loan to match the life cycle of the item.
For example, if you purchase a car you might structure the financing over five years, because at the end of the five years you may consider selling the car.” If you were to structure the financing for your car over 30 years, it means that if you sell the car in five years time, you’ll actually end up holding onto the debt for an additional 25 years – which dramatically increases the overall interest you’re paying for the car.
If you are in debt, you might ask your self is debt consolidation a good debt solution.
Debt consolidation is a new loan with new terms that lets you pay off your current debts.
Do you feel like your life is on hold because you’re trapped by all your debt payments? Consolidating your debt could be the answer you’re looking for.
It can help lower your monthly payments and get you out of debt faster so you can be in the driver’s seat of your own finances.
Having to pay off such high interest rates means that most of the time you would only be able to pay just the minimum required, meaning you will not be able to get rid of the actual debt any time soon.Credit counseling services: Credit counseling firms help address the core of your financial problems.