Most people who are drowning in debts and due dates often cling to the idea of a debt consolidation mortgage like it’s a lifeline – a god sent solution for all of their debt problems. Debt consolidation at a glance means being able to consolidate all of your credits, loans, and mortgages in a single loan offering with a lower interest rate or longer payment period. Add that to the fact that many people in the debt settlement industry are more than happy to sing praises about debt consolidation. However, unknown to most, a debt consolidation mortgage can be a gaping maw that’s more than ready to devour those who are ignorant enough to plunge headfirst without sparing the idea of a single comprehensive thought.
And no, I’m not saying that debt consolidation mortgage is a bad thing. Not at all, it’s just that debt consolidation is not for everyone.
Here’s a fact: With a debt consolidation mortgage, you can gain a considerable amount of equity and access it. If you’re someone who’s stuck with a staggering amount of debts with high-interest rate, having to pay for lower interest rates on mortgages and home equity loans in a single payment is no doubt more advantageous compared to credit card payments and consumer loans.
But here’s another fact. Debt consolidation does not mean that you’re debt free. In fact, it does nothing to wipe your debt for you. It’s just a tool that reorganizes your debt in a more manageable structure. And just like all tools, if the wielder does nothing with it, then it’s practically useless. Oftentimes I meet people who considered a debt consolidation mortgage and ended up being worse off. These people get in over their head and let their spending get out of control, thinking that since their debts have lower interest rates and the payment period is longer, things will be easier from now on. Well too bad. Things will only work out for the best if you do something about it.
If you’re someone who’s far from being disciplined and is very bad at handling finances, don’t even think about debt consolidation mortgages. In fact, instead of considering it to pay off your debts, it’ll be better if you consider getting credit counseling from a reputable company like Credit Advisors Council if financial mismanagement is what landed you to where your debt is. I’m not saying this to be mean. Some people who got ensnared by the idea of debt consolidation mortgages end up getting disillusioned and losing their homes because they don’t understand the best way to use it. Doing a mortgage refinancing to consolidate debt is only feasible if you have enough discipline in your bones to stop running your credit cards to the max for things you don’t really need.
Do you really, really need and want to settle your debts? Speak with a credit Counselor and debt consolidation specialist and let advise you. Let them help you realize that if you want to have a debt-free life, you should move forward yourself. It’s not easy, I know. I’ve been there, but grit your teeth, close your eyes, take a really deep breath, and find the resolution to not spend uselessly and pay off your debts.