Many people think that if they can refinance their property, they can use the money to settle their existing debt, perhaps debt from their credit card or some other loan. It does not help matters when it is VERY easy to go for a refinance. Most people would gladly trade a 15% credit card interest rate with a refinancing mortgage rate half of that. But is it the right path to take?
If one were to refinance his house to pay off credit card debts, he is in fact, putting his home at risk. Should he fail to meet mortgage refinance bills, he could risk a foreclosure to him house, hence losing his property.
On the other hand, failure to meet credit card bills will cause the interest to snowball but will not cause the house to be foreclosed.
If one were to refinance his house to pay off credit card debts, he is in fact, putting his home at risk. Should he fail to meet mortgage refinance bills, he could risk a foreclosure to him house, hence losing his property.
On the other hand, failure to meet credit card bills will cause the interest to snowball but will not cause the house to be foreclosed.
Which option should one choose? Of course, if one can meet the repayment schedule to the dot, none of this would happen, but who knows, right?
One way to find out more which is the thing for you is to educate yourself on personal finance and management issues which you can have all the information you want from the free online consumer portal Bills.com
Education and knowledge are indeed the best defence when making financial decisions for yourself and your family.
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