Opting for a second mortgage to pay the debt faster

Hi Neil

Welcome to the forums.

Since I have not got the accurate picture of the total amount of debt and the duration of your program, a general suggestion to you is that taking a second mortgage will perhaps extend your indebtedness longer than the program you are currently in. It is because when you are opting for a second mortgage, you are basically borrowing money from one creditor to pay off another one. And this will be done by pledging your property in between. In case any of your payments are missed, you are always at the risk of losing your property.

Based on the available information, I will suggest you to talk to your counselor and see if you can alter the existing plan. If you are in sound monetary condition, you can contribute more towards the repayment plan. This will prove more beneficial to you in the long run.

Regards
Roxette

I am current on all my payments and owe a huge debt. But I am looking for a lower interest rate to make it easier.

Hi Pixie

Welcome to the forums.

Take a free counseling here and the experts will try to solve your existing problem. The consolidation program does offer lower interest rates at all the bills combined into one monthly payment.

Regards
Roxette

Do the credit ratings get affected after entering into a consolidation program?

Pixie

Counseling programs help in preserving the credit not destroying it. Most of the people go through credit problems on one hand and spending problems on the other. When you have entered a consolidation program, you should abstain yourself from any kind of new or revolving credit. This program will ensure success only if you are committed towards it and show discipline and perseverance.

Once you have entered in the debt management program, your credit file will be viewed more favorably than before. You don't have to necessarily include all your accounts in this program. You can keep some of your accounts out of this program that can be used in emergencies as well as for business and travel.

Depending upon the type of debt, a program usually lasts for three or four years. A comment will be shown in your file that you are paying a particular account through the consolidation company. It will appear as long as you are involved in the program until the account gets paid off. This comment does not hurt the credit worthiness of an individual.

It is the responsibility of the consolidation company to make regular payments to your creditors in time. If any of your payments are not made to your creditors, things get worsened causing damage to your credit. So, you need to do proper researches before choosing the consolidators and their nature of business.

Regards
Roxette