Questions That Seniors Must Ask When Struggling Through Credit Card Debt Consolidation

Questions That Seniors Must Ask When Struggling Through Credit Card Debt Consolidation

Could You Borrow Against Your Life Insurance? For senior citizens that have been paying on their life insurance for decades in the hopes of providing for their loved ones after they have shuffled off this mortal coil, the idea of borrowing against the vested value of a policy may seem like a less than appetizing choice to only be utilized as a very last resort. However, seniors who've fallen into trouble with credit card debt have to keep in mind that they will automatically pass on their financial burdens to their heirs alongside any bequest. With that understood, it's just sound monetary planning to stem the march of compound interest and take out a loan against the life insurance to eliminate credit card debt sooner rather than later. Do You Have Sufficient Equity In Your Residence For A Credit Card Debt Consolidation Loan? Although second mortgages and equity lines attached to personal residences spiraled in popularity over the last decade during the height of the property value bubble around virtually everywhere around the United States, the leveling out of appraisal prices (which have yet to fully recover from the last recession) and new breed of state and local regulations guiding the credit card debt consolidation measures have rendered such loans extremely difficult for residents to arrange without a solid income history. Since most senior citizens' retirement accounts are not sufficiently expansive to qualify for additional financing under the new eligibility statutes, the mortgage based credit card debt consolidation strategy ranks among the riskiest and treacherous of debt relief paths. Debt to income ratios are among the most important criteria for eventual underwriter approval, and, while six months of potential mortgage payments held in a checking or savings account could potentially serve the same purpose for borrowers with preternatural credit scores, the interest rates on credit card debt consolidation will almost certainly be too high to be considered an effective solution. Could You Return To Work In Some Capacity? Sure, you probably imagined retirement as one elongated period of rest and relaxation with nothing more strenuous than the occasional round of golf or playing with the grandchildren, but real life has a funny way of changing things around when you least expect. We're not saying that seniors necessarily need to go back to work to deal with their credit card debt loads, but, frankly, if you want to avoid bankruptcy and still take charge of their own debt relief, look into some part time employment and analyze the feasibility of enlarging household income to fund repayment strategies without bothering loved ones or braving the dangers of credit card debt consolidation. Have You Spoken With A Debt Relief Professional? If you are absolutely one hundred percent without a shadow of a doubt certain that you cannot avoid bankruptcy, Chapter 7 protection even in its current and woefully maladjusted form, following the changes to legislation that the credit card debt conglomerates (and their political action committees, more to the point) have seen fit to initiate might indeed be the most reasonable solution to your existing debt burdens. If the credit card debt consolidation mortgage alternative in any way jeopardizes security of hearth and home, the bankruptcy declaration might even be relatively responsible. All the same, before taking that plunge into a world of trustee condescension, credit score dissolution, and asset forfeiture, talk to a debt relief professional about whether or not another solution such as debt settlement negotiation would be to your greatest advantage.

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