The Insecure Security: Home Equity As a Means to Consolidate Credit Card Debt (cont.)
Contributed by Alix Mcmurray
When Attempting to Consolidate Credit Card Debt, be a Fortune Teller
If you are new to the experience of refinancing, then you will need to "do the math" carefully and not sign any contracts until you're sure of your ability to fulfill them. If you think that a "balloon" is something that floats playfully in the air on a sunny day at the end of a string, think again. It can also mean the end of life as you know it in your beloved house! That is one of the greatest sources of anxiety in refinancing -- the looming presence of a balloon payment which will be no more possible to pay off than it was at the inception of your loan.
Go Ahead and Consolidate that Credit Card Debt with a Secured Loan -- When Anticipated Income is Steady
If you have paid your monthly loan installments reliably throughout the first several years of your loan, you ought to be able to retain the original terms of your loan when it is due for contract renewal. Thus, that looming balloon can be pitched back up into the sky for several more years. However, in the spirit of, "it takes money to make money," you will need to prove a steady income to qualify for either a home equity loan or a debt management program.
Most of all, you will need to prove to yourself that the income you do have and anticipate will be equal to the task of meeting your debt consolidation regime.
