Many of us are carrying consumer debt from several sources – credit cards, car loans, personal loans, student loans – and are paying much more in interest costs than we should be.
An option available to homeowners is paying off higher interest debts with a refinanced mortgage that has a lower interest rate.
This is worth considering if you are paying a lot of interest for your other debts. Debt restructuring can help lower your overall monthly payments, giving you financial breathing room rather than living paycheck to paycheck.
Just as importantly, a well thought-out debt restructuring plan can set you up for success, because at the end of the amortization period, your total debt is zero. With revolving credit – such as credit cards – you may be paying a lot in interest without ever attacking the principal.
Let me know if you would like my help in reviewing your financial needs. I can advise you on how to use the equity in your home to reduce the interest paid on your other debts. We may be able to arrive at a solution that gives you more control over your interest costs, and leaves you with more money at the end of the month.
Photo credit: [c] Adrian Van Leen for openphoto.net
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