subject: Credit Card Payments Increasing? Advice for Consolidating Debt with an Equity Loan & Second Mortgage [print this page] In recent years, the low prices of at least payback period between 2 and 2.5% on average, Americans rack encourage credit card debt of just under U.S. $ 10,000 per household. "People are now in a cycle of revolving credit facility, who says she never escaped," Adam Brauer, a debtor advocate and in-house counsel for Debt Settlement USA in Scottsdale, Arizona. "The thrust of the government credit card companies say:" The is no problem. "
Regulator with the Office of the Comptrollerbegan to pressure the currency card issuer to raise minimum monthly payments. Moreover, those who re-entered into force Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 requires credit card companies now post a warning on monthly statements that the consumers on how long they in debt when she informed only minimal payments. The new law on minimum payments entered into force at the end of 2005, and several credit card companies have doubled their minimum monthly Payments of 2% to 4%.
While the new law is intended to speed people out of debt, some people whose finances are already stretched thin, the search for the rate hikes take too much. "When you live paycheck to paycheck and your minimum payment goes from $ 200 to $ 275, spread over five cards, that an additional $ 375 per month," says Brauer. "Many families can not get it." Made with higher interest rates and stricter bankruptcy laws, consumers are asked what their> Options are equity loans.
When you have bad credit the new law, you can by a debt-counseling-go program, but that damage your credit further. If you are a homeowner, you may want to refinance through a debt consolidation loan or a mortgage), home equity loans (second mortgage, because it looked at not only reducing your debt, but you can also receive a 100% tax deduction on interest rates You pay your loan. With interest rates rising, it is probably bestto consolidate secure mortgage refinancing with a fixed interest rate or, if the interest rate is low for your existing mortgage, a second mortgage on your credit card debt. The prices are much lower than the rest of your credit cards and loans, and you will have the piece of mind that your debts under control with a simple interest loan to enjoy.
