Consolidation Credit Debt

Let's face it, being financially burdened by overwhelming credit card debt is no fun. Making monthly payments only to see that you outstanding balance has not change in months is no way to live. If you have fallen behind on your bills don't forget about those outrageous late fees and other fees the credit card companies throw at you. You know you need to do something and fast but what options do you have and what options are the best?

You can always file for bankruptcy, but with the new laws that have passed who knows what will happen in the long run. If for some reason or another your bankruptcy case get denied then your stuck with another bill, the lawyers fee. Don't forget about the impact that a bankruptcy will have on your credit report, good luck buying a house or a car in the near future.

There are many credit card counseling companies out there that would like to earn your business. This isn't a bad option and it does help cut those interest rates down to almost nothing and lower your overall monthly expenses, if your creditors are willing to work with them.

The best option that I have came across and see work tremendously is consolidating all of your debt into a new mortgage, that is if you own a home. By doing so, you have the option of paying this debt load over 30, 40 or in some cases 50 years. Seems like a long time to be paying on credit card debt but lets face it, by making your monthly payment to them it would probably take you this long anyways.

By rolling your credit card debt into a new mortgage, in most cases, is a good way to earn yourself another tax deduction. Hey, since you have to pay the debt you may as well make it a tax deduction. This option also helps you improve your credit score tremendously. Did you know that if you owe more then half of your credit limit on a credit card that the credit bereaus drop your score? If you had 5 or more credit card above the 50% limit just imagine how that would impact your score. I have seen clients credit scores go from 500 up to 580 in a matter of 6 months of a debt consolidation loan.

With more and more lending institutions rolling up their sleeves on how much they will lend based on your credit history, now is the time to take a look at the options you have. The benefits are huge and can save you from high interest rates and high monthly payments for years to come.