The Ultimate Debt Consolidation Refinance

This week, I'd like to share some customer experiences with one of the most
popular new strategies in debt consolidation refinance. Over the last few
months, a select few in the mortgage banking industry have developed
programs which allow borrowers to accomplish the 3 greatest goals of debt
consolidation: Get Cash to Pay Off High Interest Debt, Lower the Overall
Monthly Minimum Payment, and Boost Cash Flow to allow borrowers to save up
money in a short amount of time. The benefits are nearly indisputable:
Higher Credit Scores, Lower Monthly Minimums, and Greater Flexibility. But
one of the biggest criticism of debt consolidation is that borrowers who
consolidated their debts were still not saving enough money after the
refinance, and needed to tap into home equity repeatedly to achieve their
final goal. What if I told you that there is a new loan product available
today which allows you to do all of these things, but also allows you to
Make No Payments for 90 Days, with 0% interest due over the introductory
period?

David in California said what many of you just said, that's too good to be
true! If you can do that, sign me up! David had a typical Southern
California situation, he works in sales, makes a decent living, has a young
family of 5 and about $30,000 of credit card and other debt, which cost
about $1100 a month in minimum payments just to cover the finance charges on
his revolving debt. But David, like a lot of people in California, has seen
solid appreciation year after year in the real estate market, and his home,
which he purchased for about $350,000 in early 2003, was appraised for over
$500,000 a bit more than 3 months ago. He owed $300,000 on the house, on a
traditional principal and interest mortgage with a minimum payment of $2100
a month. Because of the relatively high level of consumer revolving debt,
David's credit scores had gone down to about 630 even though he was making
all of his payments on time.

When David called us, his loan officer walked through each of David's credit
card bills a with him, and together they determined that David was paying
and average interest rate of over 27% on his credit card payments, because
his credit card companies had raised his rates as his overall debts had
increased, which had hurt his credit scores badly. To make matters worse,
David, like a growing number of Americans, wasn't saving any money. If he
got sick, had a slow quarter, or was otherwise unable to work for any
meaningful amount of time, he would be at risk of financial ruin.

We looked at the whole situation, and used this new debt consolidation
mortgage refinancing strategy to show David how he could pay off all $30,000
of his revolving debt and take out an additional $20,000 or so to provide a
small cushion, partially to be used for value-adding home improvement.
Remember, David's old minimum payments were: $2100/month for the mortgage +
$1100/month for a total of $3300/month, his credit was getting worse each
month and he had no cash in the bank. After refinancing, David's new minimum
monthly payment was consolidated and reduced to Less Than $1300 per month
Total! And he now had $20,000 in the bank which he wisely put into a high
yield savings account earning 5.25% until he needed it. This monthly minimum
payment being $2000 a month lower is amazing in and of itself, however what
makes this product revolutionary is that for the first 90 days, David had
Zero Percent Interest and No Payments due, allowing him to save substantial
money each month. He socked it away each month for
3 months, and now 90 days after his debt consolidation he's managed to save
an additional $10,000, which combined with the $20,000 he cashed out means
he went from almost nothing in savings to over $30,000 in the bank earning
solid interest.

But what about David's credit? Now, it's only been a bit more than 90 days
since the refinance closed, but I am happy to say (as is David!) that his
three scores are now 667, 684, and the high score is 703! Why? His debt
ratio is down, and his debt to income ratio is way down too. Combined with a
little advice from our credit specialists, the debt consolidation refinance
has been the difference for David. He went from a total minimum payment of
$3300 a month down to under $1300 a month. He went from 0 in the bank to
Zero Percent and Zero Payments for 90 Days, and put over $30,000 in the bank
between the refinance and the resulting monthly savings. Not only does he
have some money saved up for a rainy day, the new, lower payment is much
easier to make even when times get tough, dramatically lowering his risk of
missing a payment. And because his credit scores have already improved and
will continue to do so, any new car payments or loans he takes out over the
next couple of years will be substantially less expensive, allowing him to
qualify for low cost car leases and zero-interest, cash back credit cards.

So through this illustration, we've explored some of the benefits of using a
minimum payment mortgage refinance with no payments & no interest due for 90
days as a debt consolidation tool. More so than other type of mortgage
refinance, this new loan and other mortgages like it help borrowers achieve
all of the key goals of debt consolidation, offering great payments and a
real "vacation" from making payments. If you ask David and other borrowers
like him what they like the most about the product, they'll tell you it's
the "breathing room", the ability to get out from under debt and take a
couple of months off of worrying about making the payment so they can
concentrate on organizing their finances and improving their situations. We
can all use that space from time to time, and I agree with our borrowers
about the importance of this feature.

There are a lot of reasons we consider the "Zero Interest/Zero Payments for
90 Days" plan the ultimate debt consolidation mortgage refinancing tool.
There are some limitations though, which do vary somewhat from lender to
lender: While you don't need perfect credit, a minimum middle credit score
of 620 is required to qualify for the 90 days with no payments option.
You can borrow up to 80% of the value of your home with no payments for 90
days, with the balance above 80% rolled into a separate second mortgage (or
you can keep your existing second mortgage if you have one). You are allowed
up to one 30 day mortgage late within the last 12 months, however you cannot
qualify if you have multiple late mortgage payments showing on your credit
report over the last 12 to 24 months, and this program is not offered in all
states. Depending on your credit, you may be able to state your income, or
even qualify without considering your income. Contact your mortgage
professional for more information, and if they don't have a program that
allows you to pay off your debts, lower your payments, and get 3 months off
of making mortgage payments all in one, find yourself a new lender!

Our next article in this series will tell the story of a single mother who
has impressed us greatly with the way in which she's secured her family's
financial situation with this loan immediately following a challenging
divorce. If you have any questions about this article, please feel free to
contact us, or visit us online.

About The Author: Tristan Hunt is a seasoned financial professional with a
wealth of experience in the mortgage industry, advising clients on debt
consolidation, refinancing & investor loans. Phone: 800-515-8443 Website:
http://www.RefinanceOne.net

How To Avoid Credit Card Fees

Credit cards are an almost essential part of many people's lives, because
they allow you to increase your cash flow and have more financial freedom.
However, if you use credit cards too much or in the wrong way you can be
stung with large credit card fees and penalties. Avoiding these fees will
help you to cut the costs of using a credit card and get the most out of its
benefits. If you want to know how to avoid these credit card fees then this
article can help you do just that.

Grace periods

A grace period is the time you have to pay off your credit card debt before
you start paying interest. Although many cards used to have good grace
periods, these are reducing and some have none at all. This means you will
start accruing interest from the moment that you make a purchase. If your
card does have a grace period, then the best way to avoid extra interest
charges is to pay off the balance in full before the end of each grace
period. This will mean you can use your credit card without having to pay
interest.

Late fees

One of the most expensive fees you might have to pay is for late payment.
Although you might not think this will apply to you, it is very easy to be a
day or two late with payment, especially if you have a lot of cards and
bills. Late payment fees can be as much as £35, and if you are near the end
of your credit limit could trigger other penalties such as over limit fees.
Before you know what has happened you might owe £100 in fees, which is
basically money wasted. To avoid these late fees, try and pay your bill by
direct debit if possible, or use online banking to speed up the process of
paying your bill. This will ensure that your money arrives on time. If you
think you are going to be late with payment, try calling your credit card
company to inform them. If they know it will be late they might be able to
waive the penalty fee, especially if you usually pay on time.

Annual fees

Another fee that can cost you money is the credit card annual fee. Although
this fee used to be commonplace, less and less cards are now charging an
annual fee. Unless you have a gold or platinum card, then you really
shouldn't have to pay an annual fee. Although there will be some issuers
charging annual fees, unless the benefits you get for the fee are
significantly more than the fee you should find another card.

More than just the fees

Perhaps the biggest problem with some of these penalty fees is that if you
have to pay them, it can mean more money lost for you than simply the
penalty fee. For example, if you are late with payment a few times, the card
issuer may remove your low interest rate. This could end up costing you a
lot of money, especially if you have a large balance on your card. In order
to avoid these fees, make sure you carry out your payment obligations, and
also read the contract in full before signing for the card. That way you
will know what the fees are in case the worst should happen.

About The Author: Peter Kenny is a writer for creditcards-gb Please visit us
at http://www.creditcards-gb.co.uk and
http://www.thriftyscot.co.uk/Credit-Cards/

Why To Consolidate Debt

I know you're looking at that plasma TV and thinking of buying yourself a
nice early birthday present. You can just imagine it on that wall in your
living room. In fact you've been saving a spot for it for a year now. But
there's really no way that you could afford such a thing. Unless.you do have
that little piece of plastic in your pocket just screaming to be used.

Besides, this is the reason you have a card, in case of an emergency. And,
that big empty space is an emergency, it must be filled. Of course you'll
have a big fat balance on your statement that there's no way you can pay,
but what the heck.
Only live once right?

Now Stop and Listen Carefully!

How silly do you sound when you begin thinking thoughts like these? This is
what happens in millions of heads around the world daily, and this lack of
debt management is hurting way too many people, so don't get sucked into it
too.

It's crazy that we think that we can just buy something that we can never
afford just because we can charge it. Tell me, what kind of debt management
is that?

Well, if you need help with your credit cards and debt, don't feel bad
because you're definitely not alone in this. In fact, I remember getting my
first card, I got myself in the same situation, and this is after I told
myself that I would never use the silly thing.

Well, except for emergencies that is.

Then came college, and everything seemed to be an emergency. I was on my own
for the first time, and not wanting to bother my parents, and wanting to
appear "responsible" I just kept on racking up the balance on the darn
thing. Oh but that was okay I would convince myself, because soon enough I
would graduate with my bachelors and laugh at this debt I was racking up.

This may be how it ends up for some people, but for most, myself included
the exact opposite is true. I actually come out the other end with a good
career, but I didn't consider how much actually living in the real world
costs, and very soon my budget had met it's match.

Now I had to find help with my debt.

The one thing I did that was quite smart was to transfer the debt to a lower
interest card. It helped me a little, but it really was still hard keeping
up.

I then began my search for a reliable company to help me consolidate debt
even more. I searched online and found quite a few companies to help me. The
one that I went with, actually helped cut some of my balances by up to 40%,
and then got me on a plan with on low monthly payment that was easy to
afford.

So, don't be like me and get yourself into a mess. Start managing debt
wisely early on, and you'll avoid a rough ride that you don't need.

About The Author: Robert Carlton writes essentially for
http://www.debtania.com , a website on money management and assets. You can
come across his publications over at
http://www.debtania.com/managingcreditcard.html and many different sources
for managing credit card debt tips.

Credit Card Debt: Do You Need Credit Help?

If you have credit card debt it is important to take its measure from
time-to-time to determine whether or not you have a problem with your debt.
If you are carrying a balance on more than one card (or simply a sizable
balance on one card) then you could have a problem.

There are five reasons why you should seek credit help to deal with your
credit card debt.

The biggest reason is that credit card debt can affect your credit score
which in turn impacts your ability to borrow money for everything from your
car to your home. High credit card debt can lower your credit score and
raise your interest rates. A problem with late credit card payments or high
amounts of debt can make you appear to be a poor risk for credit to many
finance companies.

However, almost as important is the way that credit card debt makes you
feel. While money cannot buy happiness, credit card debt certainly buys
unhappiness. The knowledge that you have a large debt can destroy your self
esteem and add a lot of stress to your life. If you dread the arrival of the
credit card bill in the mail then you have a problem with debt that you need
to address. Owing money can also add a lot of pressure and stress on a
marriage.

Another important reason to resolve your credit card debt is that by
avoiding the problem or simply paying minimum amounts you will never be
free. Most minimum payments do not do much more than pay for the interest.
While many people make paying their credit cards a low priority it should
actually be a top priority. Yes, your mortgage payment is important because
you do not want to lose your home but that is good debt as it helps your
credit rating and your taxes. Credit card debt does nothing for you at all.

Owing money on your credit cards is also a self perpetuating problem. Every
time you charge instead of paying with cash and every time you do not pay
off the full balance when it comes due you are perpetuating your problem
with debt. You need to learn better money habits or you will never solve
your problem with credit card debt.

Finally, an important reason to start paying with cash, check or debit card
is that by paying-as-you-go for your lifestyle you will be modeling
responsible behavior for the next generation.

Take these five reasons to heart and take stock of your own financial
situation to determine whether or not you have a credit card debt problem.

About The Author: Deanna Mascle shares more tips about Credit Card Debt and
Credit Repair in her blog at http://answersaboutcredit.com

Things You Should Know When Applying for a Credit Card

When you apply for a credit card, the lender does a credit check to how
risky the extension of credit is going to be.
There has to be a standard of risk that the lender is going to be willing to
accept. Among the things you can count on being checked are your credit
history, income, job history, current debt, how long you've lived in your
residence, whether you own your own home, how many times you've applied for
credit, and possibly if you have tax liens or judgments filed against you.
All of these factors can be listed on your personal credit report and along
with your credit score (the numerical value of your credit
worthiness) the lender will determine if and how much credit they want to
extend to you.

In today's world, there is a credit card available for just about everybody.
You are going to find yourself pummeled with credit card offers at some
point or other. This is especially true for students. This is where
patience, research, and common sense should come into play. Never choose the
first credit card offer that comes across the table. Set a standard by what
you're willing to allow yourself to be charged in interest. After all, this
is money that will be coming out of your pocket. This means getting in the
habit of reading the fine print of the offer. Some companies offer low to
zero interest but this usually for a set period of time from one month to
one year. Read the fine print so you don't wind up with a zero interest
credit card that suddenly charges you 18% interest.

It's also very important to note that if you apply for too many cards at the
same time, this can put a negative light on your credit report. Each lender
that checks your credit generates a line on your credit report called an
inquiry.
You will end up getting rejections if you apply for card after card.

If you have no credit or a bad credit rating, the best card to apply for is
the secured credit card. Getting this card and making your payments on time
signals that you're a good money manager and responsible with your financial
matters.
This is a great way to establish credit or begin rebuilding your credit.
More often than not, once you've established that you're a good credit risk,
you might be given the option of an unsecured credit card with a much higher
spending balance.

Knowledge is the key and understanding the credit game will save you a lot
of time and money over the long period.
Remember, that many people are in debt because they have a good number of
credit cards with high balances. One personal financial disaster can leave
you seriously in debt. Once you get your credit card, use it wisely and
never use the credit card to pay for anything you can write a check for.
Remember that legitimate credit card companies are not going to ask you for
money up front. Never apply for credit cards you don't need.

Use these tips to understand the application process and use your credit
wisely.

----------------------------------------------------
Liz Roberts is a loan consultant with NewHorizon Finance and has been
providing consumers and business owners with financing since 1989. Bad
Credit? Join our mailing list for tips on building and repairing your credit
yourself without hiring a credit repair. Vist our site for a list of bad
credit credit cards http://www.newhorizon.org/Info/unsecured.htm

Bankruptcy Avoidance - Eliminating Debt

Americans generally have one thing in common - debt. Were you expecting
something else? Sadly, whatever plans we make or whatever we claim when we
are in our youth, we manage to some how get into debt. For most people,
especially applies to student type loans and credit cards. Yes, college
somehow changes how we do things. Next thing you know you are married with
some children, a hefty mortgage, car repayments and mountains of credit card
type debts. It's now time to eliminate credit card debt today. Of course you
must be asking how this can be done, and get it done today? Well, hopefully
you are a movie fan because 'Heat' isn't so far from the truth.
Eliminating credit card debt that way is foolhardy because jail is not where
you want to go. Your interest would go even higher.
Ouch!

Yes, everyone wants to know the secret to getting rid of credit card debts
the fastest way possible. That goes without saying.
The question should be - how do we start? For some of you this will be a
major challenge, but for me it's simple. Frankly the most sensible thing to
do right now is to evaluate how many cards you have and how much interest
you are paying on them.
Yes, write it down now! How miserable does it appear? Now you need to get
onto the Internet.

The Internet is a fantastic tool for searching and researching eliminating
this type of debt permanently. So open up that search engine and let's learn
how to consolidate debt. You need to understand how to consolidate all those
ugly balances into one much lower monthly repayment. The trump card is the
interest, lower interest than you are currently dealing with.
You may need to consider getting a loan or doing a transfer of your balances
onto one single low interest card. The key is APR. High interest as you know
is a killer. Why pay out more than you have to, right? This exercise is
about getting rid of that debt now.

The fact is that paying off this type of debt takes time. Fast is not
necessarily fast, but a slower and necessary process.
The important thing is to lower those payments. With the help of the
Internet you can research the best ways to consolidate your credit card
balances and avoid bankruptcy, maybe get some advice about debt management.
No time like the present, so get to it!

About The Author: Johnathan Bakers publishes for the most part for
http://www.debtania.com , an internet site with information about investing
and debt relief. You can come across his articles over at
http://www.debtania.com/howtoeliminate.html
and other sources for how to eliminate credit card debt information.

Avoiding Bankruptcy With Credit Card Debt Relief

Are you looking at that amazing new plasma type television in your
electronic store´s window? Isn´t it something? It would look absolutely
wonderful hanging on your wall right now, right? Oh, so you cannot really
afford it, but that does not matter to you right now? You do have a credit
card, and it´s okay to just put it on the plastic and go home with your new
toy, right? That´s the American thing to do. However, your bill has arrived
and the credit card amount you have to pay is big, very big, but that does
not matter, does it? You better stop now and think again.

The overwhelming problem with society´s current mentality is that for some
strange reason we think we can buy things that we really cannot afford. This
is a major mistake on our parts. It´s high time that we changed our
foolhardy attitudes. It´s time to get the help we need with credit card debt
and simply stop spending what we don´t have.

So, you need help in dealing with that niggling and worrying credit card
debt? That´s not a problem. You are not the first or the last person to be
in this self-inflicted mess. We have all done this. We get our first credit
card and assure ourselves that we will never need to use it, except maybe
for emergencies. However, that didn't happen, did it? I was in college once,
had the same attitude, and started using mine on a regular basis. I strongly
imagine that this seems quite a familiar situation to you. You like myself
thought it wouldn't be a problem. We could add that bill or quick purchase
to our credit card and everything would miraculously not suffer as a result.
Yes, the debt incurred would be in the thousands, but soon we would have
that well paid career and could clear the debt right away. Right? I guess we
were all wrong because the reality is that life doesn't always work the way
we planned it.
Before I knew it I was in the same position as you, in dire need of credit
card debt assistance. Yes, I got that career, but not in the time frame I
had hoped for.

Thankfully, finding credit card debt assistance is as easy as accessing your
computer and the Internet. Start by searching for credit card debt
consolidation and debt management. It is possible to stop struggling making
ends meet and enjoy lower monthly payments. This is one of the best ways to
avoid bankruptcy.

About The Author: Jack Blacksmith pens primarily for http://www.debtania.com
, a web publication with topics around investing and debt relief. Writing
for works (e.g.
http://www.debtania.com/howtoeliminate.html on eliminate credit card debt )
he showed his expertise in the field.