| Many people have incurred debt over the past two | | | | You will pay less interest and have a smaller monthly |
| years with the downturn in the economy and rising | | | | payment than servicing all debts, but you will have the |
| unemployment. Despite record low interest rates for | | | | mortgage for a longer period of time. |
| mortgages, other forms of credit like credit cards, | | | | You can also choose to get a home equity loan or line |
| revolving credit and car loans are still at high rates. A | | | | of credit that is secured by the equity in your home. |
| home equity loan mortgage can make good financial | | | | The rate of interest on a home equity loan is much |
| sense if you have equity in your home. You can | | | | lower than an unsecured loan. The advantage to this |
| refinance or borrow against that equity to save | | | | type of loan is you can usually pay it off sooner, and |
| thousands of dollars in interest, since this type of | | | | increase payments as your cash flow improves. The |
| secured loan can be financed at lower rates. | | | | object is to pay the line of credit down, not to leave it |
| Many options are available to reduce your debt burden | | | | run up at the maximum amount. People that do not |
| and increase your cash flow. If you are currently | | | | pay down their lines of credit may be better off with |
| making many different payments to lenders: store | | | | an increased mortgage payment, since it forces you to |
| cards, credit cards, loans, cash advances, etc. you can | | | | be more discipline in paying down debt. |
| consolidate all of those debts into one monthly | | | | Using the money in your home can make good |
| payment. This consolidated payment is usually much | | | | financial sense, as long as you avoid incurring additional |
| lower than the total minimum payments for all debts. If | | | | debt in the future. You need to be disciplined and pay |
| you are having trouble making ends meet, the lower | | | | off your loans and not look at refinancing as a way to |
| payment may mean you can avoid going further into | | | | afford a more lavish lifestyle. It is also a good idea to |
| debt by using credit to get through the month. As your | | | | keep some money or lines of credit open in reserve |
| income or cash flow situation improves, you can make | | | | for emergencies. |
| accelerated or additional payments towards your | | | | An accredited mortgage broker can help you |
| home equity loan to pay it down faster. | | | | understand your options for a home equity loan |
| It may make sense to refinance your mortgage at | | | | mortgage, and help you find the best financing solutions |
| today's low interest rates, increasing the amount of the | | | | for your needs. |
| mortgage to pay off your other high interest debts. | | | | |