Are you having trouble paying your credit card bills? Do you feel like you fall into more debt every month when those finance charges hit?
You are not alone-- there are many people in credit card debt. It is possible to get out, particularly if you have owned your home for more than a year.
Why one year? Well, in order to qualify for a second mortgage, you need equity built up in your home. It is unlikely that your home will have enough equity built up if you bought it less than a year ago.
When you apply for a second mortgage, you can get cash back to pay off your credit card debt. The difference between the cost of your recurring credit card debt and the costs of your second mortgage can actually be in the thousands.
Have you noticed that everyone associates credit card debt with a harmful debt, yet home loan debts have harmless connotations? This is due to a couple of reasons. First, it is because the interest you are constantly paying on your credit card every month is at a higher rate than your second mortgage's interest rate. Secondly, interest that you pay on your credit card is not tax-deductible and interest on your second mortgage usually can be.
If you choose to apply for a second mortgage in order to pay off your credit card debt, you will end up saving a great deal of money. In fact, if you are experiencing a slow flow of income, you can pull extra money from the second mortgage to finance any anticipated future costs, rather than resorting to those financially damaging high interest credit cards.
Furthermore, if you have poor credit, you will notice a positive change in your credit score if you pay your credit card debt down with a second mortgage. Remember, credit card companies use systematical techniques to decide the interest rate on your credit cards. Even if you have decent credit, paying down your debt can drastically improve your credit standing. If you choose to pay down the debt slowly, call your card provider and ask if they can lower the interest rate. If you explain that you will be paying them off in the near future, they will likely offer you a better rate and you will save more money.
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Are you having trouble paying your credit card bills? Do you feel like you fall into more debt every month when those finance charges hit?
You are not alone-- there are many people in credit card debt. It is possible to get out, particularly if you have owned your home for more than a year.
Why one year? Well, in order to qualify for a second mortgage, you need equity built up in your home. It is unlikely that your home will have enough equity built up if you bought it less than a year ago.
When you apply for a second mortgage, you can get cash back to pay off your credit card debt. The difference between the cost of your recurring credit card debt and the costs of your second mortgage can actually be in the thousands.
Have you noticed that everyone associates credit card debt with a harmful debt, yet home loan debts have harmless connotations? This is due to a couple of reasons. First, it is because the interest you are constantly paying on your credit card every month is at a higher rate than your second mortgage's interest rate. Secondly, interest that you pay on your credit card is not tax-deductible and interest on your second mortgage usually can be.
If you choose to apply for a second mortgage in order to pay off your credit card debt, you will end up saving a great deal of money. In fact, if you are experiencing a slow flow of income, you can pull extra money from the second mortgage to finance any anticipated future costs, rather than resorting to those financially damaging high interest credit cards.
Furthermore, if you have poor credit, you will notice a positive change in your credit score if you pay your credit card debt down with a second mortgage. Remember, credit card companies use systematical techniques to decide the interest rate on your credit cards. Even if you have decent credit, paying down your debt can drastically improve your credit standing. If you choose to pay down the debt slowly, call your card provider and ask if they can lower the interest rate. If you explain that you will be paying them off in the near future, they will likely offer you a better rate and you will save more money.