Consolidating credit card debt for students Coffeyville nasty
Today’s debt consolidation mortgages are more conservative than those seen during the housing boom, when lenders allowed homeowners to refinance and cash out as much as 110 percent of the value of their homes.
The truth is debt consolidation loans and debt settlement companies don’t help you slay mammoth amounts of debt.
In fact, you end up paying more and staying in debt longer because of so-called consolidation.
Get the facts before you consolidate or work with a settlement company.
This lending requirement is somewhat useless when it comes to preventing the borrower from getting into debt again because obviously it doesn’t stop the homeowner from opening new credit card accounts right after closing, Harper says.
That’s why the responsibility of not falling into the debt trap a second time lies in the hands of the homeowner.
“And if you haven’t addressed that deficit or the reason that credit card debt continues to grow, then you are going to find yourself right back in that situation again and there may be no equity at that point.” The requirements to get a debt consolidation mortgage, or cash-out refinance, are not much different from those to get a standard mortgage — except for the minimum equity requirement, says Bill Banfield, a vice president for Quicken Loans.