Bad Credit Debt Consolidation Mortgage Managing Credit Card Debts

Are you such a compulsive shopper that you find yourself unable to manage your credit card debts? Do you feel that you are going down under, what with the entire debt burden and your inability to repay the arrears? Do you have multiple debts? Then a Bad credit debt consolidation mortgage is probably right for you.

Credit Card Arrears

Credit cards are, perhaps unsurprisingly, one of the leading sources of debt in USA. Unlimited credit is a temptation that many shopaholics simply cannot resist. The result mounting credit card bills. It gets worse if the debtor has more than one credit card.

Apart from credit cards, you could also have other debts: education loans, medical emergency, home renovation etc. The loans start out as manageable amounts, and then as the bills keep on piling, and then you suddenly find that they are going to bankrupt you. A bad credit mortgage seems the solution.

How It Works

This mortgage is essentially a second mortgage on your home. First, your credit advisor will go through your books and bank statements to see how bad your financial situation is. Then, they will advise you on how to go about negotiations with the creditors so that you as well as they get the maximum benefit out of it. Remember that creditors are more interested in recouping payment rather than go through a lengthy court procedure to impound your home and property. They will be amenable to a settlement through a bad credit debt consolidation, and even lower interest rates if you are persuasive enough. The better option is to let your consolidation advisor negotiate on your behalf.

What You Should Look At

When opting for any bad credit debt consolidation mortgage, look at the following.

1. Mortgage Rates: Prevalent mortgage rates are an important factor in deciding whether this option works for you or not. If your first mortgage commands high interest and current market rates are lower, go for a debt consolidation mortgage. 2. Lender Reputation: If you are already reeling under financial difficulties, you can do without another problem fly by night operators who take your money and disappear. Deal with a lender only if they have been in business for a few years and have a good reputation.

Remember that a debt consolidation mortgage can help you out once, but you need to pull up your socks and get working on changing your lifestyle or earning more; and be careful not to run into a debt trap the next time round.