So here's the deal...as it happens sometimes I have found myself a 30ish single mom saddled with a bunch of debt that I'd like to aggresively start tackling now. I would like to avoid the bankruptcy route. I am not knocking anyone who has had to do it. I just think at this point that I can still explore other ways to pay things down without having to go there. [I have no problem posting this info about my life on a public forum because I am owning the issue and doing what I can to resolve it. Most importantly, I could supremely care less about what any haters may think about me. :lol:] Anyway, one of the options I'm looking at is refinancing my house. A lender is quoting me a lower interest rate than I have now, I would be able to pay off my two biggest debts and I'd still be saving money every month (even though my mortgage payment would go up a little). I do plan on being in my house for at least another 8 years so I'm not moving anytime soon! If you've done this and have advice, warnings, etc. I'd love to hear them. I'd also like to hear what companies were used/not used. My understanding is that the big banks aren't able (willling) to do what the smaller places can, but I want to avoid shady companies or companies that charge really high fees. If you'd rather PM me, feel free! Thanks!
If you have a lot of unsecured debt, consider the debt consolidation route via a home equity line. Borrow it against your crib and pay it down with one payment with a lower interest rate. And stop spending like Obama.
Rates are historically low. If you can save a point or two it's probably a good idea to refinance. With rates so low, you might want to look at one of the No Cost rifi's. In a nutshell, they bump your rate a little instead of charging all of the up front fee's. You could still get around a 3.5% for 15 years, or probably around a 4% for 30. Neighborhood Lender, D&J Mortgage are two of them that do it. Oh - If you happen to be a member of SECU you should look at them first. :lol:
I had major issues that I was unaware of until it hit me all at once about 7 years ago. I used "lawyers for debt relief" which did debt consolidation and handled the hounds and legal issues as well. Cost a little more than the standard consolidators but worked well for me. Refinanced the home 2 years ago!
Volleygirl, My credit score just dropped a lot and I am researching. You are not in this alone so understand that. I agree with Don't Care. Sherry
Hey Volleygirl. Have you looked at the Dave Ramsey books and stuff? I can lend you the one I just finished, I think it's Financial Peace. After being told for two or three years by everyone who had tried it to give it a read, I finally did about two months ago. It changed the way we're doing things. We were deeply in debt, and without any outside agencies I've managed to pay off three credit cards, with two more to go. Also, sold one car and bought a car for cash, and am working on doing that with the second one to eliminate the payments. Right now, I'm looking into refinancing my house. I'm self-employed, so that makes it tough to get a loan... Income is sporadic. Anyway, any info you learn in the process I would gladly love to hear! So many of us are in the same boat and are trying really hard to dig out of it. I, too, take responsibility for spending too much and for the position I'm in. But the good news is that we're making progress to get out of that!
I would have to agree. Read this book, great advice. I was lucky to grow up in a home that was debt free and have a parent that educated us on a life free of debt responsibilities. We do have a house payment but this will be paid off in 5 years or less, which is years before we plan on retirement (this was a major goal for us). We pay cash for our cars and owe not one red penny on credit cards or student loans and this with two kids in college. I always ask myself this question "Is this a need or a want?" before buying anything. There are so many little things you can do to get your life back on track. The best advice I can offer you is to NOT roll over debt into debt, such as taking out a line of equity on your home, very bad advice but the banks tell you different, the smart experts looking out for your own good will tell you not to do this. If you are going to refinance your home, do it because it means that you are getting a better interest rate, which in turn will lower your monthly payment or your payment remains the same but you've gone from a fixed 30 year to a fixed 20 or 15 year, but never to pay credit card debt off, your're still paying for them, their not eliminated. Read the book or find some advice elsewhere on how to ELIMINATE this debt. Good luck.
This is EXCELLENT advice. Don't rob Peter to pay Paul by transferring debt or consolidating. I understand the intent, but in actuality, it's not really any better. And building equity in your house is more important that using that equity to pay off other debt. I also agree about only refinancing to decrease the years you pay on the house or to decrease your interest rate. Now we have a budget. And we have less than a thousand dollars in savings, but a few months ago we had zero in savings. Learning how to live debt free has been a challenge that is totally foreign to me, but the good news is that as hard as it gets, we'll be able to do it and what a decrease in stress that will be! Also, our kids are learning now what it's like to have to reign in spending and live within our means... and I pray that they'll really understand this by our example and not get in the same boat we're in. Sorry, didn't mean to preach... but I am just so hopeful about using the Dave Ramsey information (not a get-rich-quick plan... just some basic advice). Wish I had the info when I was 15 years younger...
Well, don't beat yourself up about the should'ves and could'ves, we all have those. Keep looking forward and stay positive. Some other tips I use: 1. Don't carry small bills (it has always hurt me more to break a $20 versus a $5) 2. Live actually below your means. 3. Plan ahead for things such as vacations and use a set amount of cash and spend no more. 4. Emotional spending is a big "No, no." Keep making those baby steps and you'll enjoy that financial freedom, so much less stress in your life it will feel fantastic.
If you are looking to refinance your home, I strongly recommend talking to Keith Ennis, with New American Mortgage. They have some of the lowest interest rates currently available. Keith Ennis New American Mortgage http://www.newamerican.com keith.ennis@newamerican.com 919-723-1539
I second this girl, he is a great guy that i know personally. If you want to ask about him, give me a call.
Never pay a debt consolidation company to lower your bills. You can do some research on the internet and do the same thing yourself for free. All it takes is time and research. I highly recommend the website consumers.creditnet.com. We just closed on our house yesterday and we were able to get 3.25% interest. We used Don Waters at Prime Lending in Clayton. Good luck to you!
we recently refinanced to a 15 yr fixed with Acopia Loans. we got it at 3.125, with an APR of 3.5. paid off some debt and shortened our house loan. payment is about $100 more each month, but that is less than we were paying out for the debt each month, so intend to pay more toward mortgage. closing costs were rolled into loan, all we had to pay up front was appraisal, about $400.
We're in the process of a re-fi with Citimortgage through the H.A.R.P. program, coming down from 6.25% to 4% (fixed), lowering our payments by $100.00 a month. So, you may want to inquire about the H.A.R.P. program with whoever you speak with about refinancing, it may help you get a better deal.
Our mortgage is with Chase and they keep sending refinance offers to us via overnight mail. The lowest rate offered so far is 3.25 with no closing costs at all, but you have to take a 30 yr (this is the HARP program it turns out) and you can't take any cash out of the refi on the equity of your home. Holding off for now because we are also considering selling and buying another house instead. Hope the rates stay low for a while longer.
