Should I refi to pay off my debt? Being in a financial jam can be a frustrating as well as an unsettling experience. Getting harassed by bill collectors and creditors day and night can be annoying as well as emotionally draining. But you do have options that you can take to take care of the situation. The two that we are going to discuss in the article are refinancing your home to pay off the debt or doing a debt settlement program.

You may want to think twice about refinancing your home to pay off credit card debt

The reality is that nearly 77% of borrowers who get a new loan to settle their credit card debt are back in the same position in less than 3 years. Why do so many end up in the same boat? Because they have not changed anything in their life. By unloading their debt quickly with a refi you don’t have to develop a new habit. This is why no financial planner would ever recommend refinancing a home to solve a financial crisis.

Don’t make unsecured debt secured, you could be risking your home

Very few financial planners would ever recommend pulling money out of your home to pay off unsecured credit card debt. You are taking unsecured debt and making it secured. Once you do this, you are risking your home. If something happens and you cannot afford the higher mortgage payments, you could loose your home versus just having bad credit.

Debt Negotiation is an alternative to bankruptcy

The other options to handle your debts are Bankruptcy and Debt Settlement. Bk should be your last option. The impact it can have on your credit report can stay with you 10 years or more. Being in a Debt Settlement program will only have lates and collection accounts on your credit report versus having a bankruptcy. The other aspect of Debt Negotiation is that it is not a quick solution to solve your financial problems. You are tackling the issue by the horns. Therefore you are creating a new habit in regards to your finances. Typically you can complete a Debt Negotiation program in 36 months or less. When you complete your Debt Settlement program it will have no negative impact on your credit report. All the collections will show paid in full and your credit score will go back up within a couple of months. A Bankruptcy can stay on your credit report for up to 10 years.

You can buy a home two years after a foreclosure

You can buy a home after two years from your bankruptcy filing. This would be in accordance with the mortgage guidelines for Freddie Mac and Fannie Mae. When you complete a debt settlement program you do not have to wait. You can buy a home while you are in the program.

Just don’t get in debt

The best advice is to not get in debt at all. Live by your needs and not your wants and you will always have peace of mind.

This information is designed to be of general interest and should not be considered legal advice. The specific information discussed may not apply to you. Before acting on any matter contained herein, you should consult with your personal legal adviser or attorney.

For a no hassle debt review call toll free 1-888-368-6668 or go to DebtNegotiationZone.com