Should You Consolidate by Refinancing or Get a Second Job?

Recently I heard a respected finance advisor to advise a caller on a TV show with this question ...

"We have over 20,000 dollars in debt, and with a minimum credit limit up, I fear that we are not able to treat even the minimum payments. I have a mortgage company about refinancing my mortgage and consolidate my debt into a spoken payment, we can manage. What should we do? "

The answer was ... "Thnot refinance your home! Why would you do that? Why risk at home, by adding other debts? I want you to go and get a second job and work hard to pay them. "

I could not believe that this advice! Basically, poor caller said was going to take time away from family and working a second job (probably around $ 7-8 per hour pay off) on the extra debt. Forget the impact on privacy of the caller and the stress, we look at the financial realityhere.

A second place at even an aggressive price of $ 10 per hour on average only 10-20 hours per week. Say $ 200 before taxes, approximately $ 150 after taxes. Take the increased expenditure has occurred (gas, vehicle wear and tear, etc.) and include approximately $ 100 per week to take on the debts. Again, we will (forget the whole compound interest on the credit card as if the credit card company would do!) At $ 100 per week, would that $ 20,000 paid out in more than 200 weeks long.That is almost 4 years of work per week. (Now add back the interest, and how long would it take?)

Wow .. not so bad, right? Where can I sign up?

What is the refinancing of the home and paying off that debt. Well, the same caller said they could save about $ 450 per month over the current set up to. Well, if the caller would still pay the monthly amount they were always on, they get the additional $ 100 per week and not get a second job. Additionpay the tax benefits from the interest on a mortgage, and go the better way is to?

Frankly, I think the advice was wrong. My advice? Not call into a so-called experts and ask for financial advice. Get advice from a professional that can sit with you and take the time to give you good advice tailored to your needs and goals .. not a talk show on the agenda!

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How to Consolidate Debt Loans and Pay Your Debt Off Faster - Learn the Power of Bill Consolidation

Would not it be nice to more high interest rates charged on your debt and the ability to save all the money to pay your debts faster pump? Now you can with what is known as a debt consolidation loan consolidation or bill. Now before you run off your next bank, it is important that the additional fees which are charged if you can check out an old loan and into a new one. You must also take on the state of interest thatwhich offer and how those prices are beyond the term of the loan will be structured.

The goal of a credit card debt consolidation loan, make sure that you save a reasonable amount of money when you merge all your debts into a loan consolidation. With these savings you will be able to radically change your financial situation.

Here are some tips to help you out are:

1. Look at the interest rates that the lender will calculateYou for this new loan. Note that a credit card loan consolidation is where you put the debt of many map to a new card look good is low initially with a short-term, but if this rate changes again to vote in the full credit card number and will pay you more interest than ever before. With a home equity consolidation is often a good option for those who own the house and they tap into the additional capital available. If you need thisto confirm that the interest rate is much lower than what you pay now and will not return to a higher rate after the period a "honeymoon". You must be aware that some of your loans may have very good prices on them - student loans are a classic example of this. Why a school loan consolidation, if the prices are often lower than your current mortgage rate?

2. Fees can really hurt a bill consolidation[http://consolidatingloan.lifeandmoneyonline.com/consolidate-college- loans. php]. Be diligent, if talks with lenders and make sure that they have a reduction of any fees you incurred in the preparation of this credit debt consolidation loan. Something that many consumers are forgetting the cost of the phase-out existing loans are linked. Check your contract or ring your current credit provider and ask themif you pay any exit costs. When these fees add up to a considerable extent it is not worth consolidating if you find a better deal elsewhere.

3. If you are interested to pay your debts as soon as possible, then you will want a new loan that has received a shorter term loan. The reason is that although your repayments will be higher, you will pay much less interest in the long term, saving you an enormous amount of money and the phasing out offinancial problems that you might before. Another option is to play it safe, take the longer term, the lower monthly repayments or two weeks but has then undertake to pay a much higher amount each month via an automatic payment from your savings account or pay directly from your office.

4. If you take the step in the consolidation loan, do not fall back on bad habits by buying things you do not have to pay on the credit card you just removed. Cut theCards, and you simply leave a card for convenience. Banks will often support one or two debt consolidation, but it will not help you if you have exceeded your ability to pay.

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