Originally posted 2010-03-26 13:15:04. Republished by Blog Post Promoter

Competition is fierce among credit card companies to own a piece of your debt. Advertisements abound from these companies, each jockeying to offer you a better deal on refinancing your credit card debt. Mortgage debt, also, is a target for those in the debt acquiring business. But, when is refinancing your debt good for you and not just a benefit to the lender? Melrose Park bankruptcy lawyers can advise you further on this, but for now, here are some general guidelines:

It’s a good idea to refinance your home:

– If you can refinance your home for the same amount of time left on your original mortgage or a lower interest rate and without overwhelming additional fees, then do it.
– If you have a bank loan and can refinance with another bank loan with all of the above conditions included, then do it.
– If you can refinance your home for substantially less than its market value and come out with substantial cash to apply in other areas, then do it.

It can be a good idea to refinance your credit card debt:

– If you can refinance your credit card balances for a lower interest rate and have all the other terms of the loan are comparable, then do it.
– If you are not in default in your mortgage or in financial trouble and a refinance on your home to pay off high interest credit card debt has tax advantages, a lower interest rate on the mortgage and the loan is for the same of less than the length of time left on the original loan, then do it. A word of warning though, DO NOT refinance your home solely to pay off credit card debt unless there are advantages for the cost of the mortgage as well.
– If you can transfer your credit card debt to another company for less interest and no fees associated with the transfer, then do it.

Don’t make the following mistakes in refinancing:

Don’t let a tenacious creditor talk you into refinancing to satisfy their debt. These folks are trained in the art of intimidation and they’re very good at it. However, their parent company is often reluctant to pursue debt through the court system and they’re left only left with the option to intimidate. This debt can be negotiated better through a credit counselor or by contacting the debtor directly.

Don’t refinance your credit card debit with a loan you have secured with tangible property, such as your home or vehicles. You may be putting these previously unencumbered assets into jeopardy if you have to default on the credit card balances or declare bankruptcy.

And above all, don’t rush into anything. Carefully consider your options, decide if any action is going to be for the good and then, proceed with caution. Melrose Park bankruptcy lawyers can offer you more advice and suggestions than are listed here, so contact one of them for more complete information. Even if bankruptcy seems to be an option on your horizon, contact Melrose Park bankruptcy lawyers before you make any major changes to your present financial situation.

When faced with overwhelming debt and the possibility of bankruptcy, Melrose Park bankruptcy lawyers can offer advice and help get your financial situation back under control.

Article Source: ArticleSpan

Filed under: Debt Collection Articles

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