{"id":2262,"date":"2020-08-03T09:47:47","date_gmt":"2020-08-03T09:47:47","guid":{"rendered":"https:\/\/www.ezilon.com\/topics\/?p=2262"},"modified":"2021-06-01T08:07:25","modified_gmt":"2021-06-01T08:07:25","slug":"refinance-wipe-away-that-holiday-debt","status":"publish","type":"post","link":"https:\/\/www.ezilon.com\/topics\/refinance-wipe-away-that-holiday-debt\/","title":{"rendered":"Refinance & Wipe Away That Holiday Debt"},"content":{"rendered":"\n

It\u2019s that time of year\nagain, and homeowners from coast to coast are feeling the pinch in their\npockets from the financial stress of the holiday season.<\/p>\n\n\n\n

Retailers across the\ncountry are reporting record breaking consumer spending, and in the era of big\nticket items like the IPod and HDTV, it\u2019s easy to see why consumer credit card\ndebt has reached an all-time high.<\/p>\n\n\n\n

All of this spending\nis occurring at a time when the average Christmas bonus doesn’t cover quite as\nmuch as it did a few years ago, and overtime hours are on the decline.<\/p>\n\n\n\n

Many homeowners are\nlooking to the recent reduction in home loan interest rates, still historically\nvery low, to help clear up high interest, high payment credit card debt. \nAnd they’re not just stopping at their credit cards, whose minimum payments are\non the rise industry-wide.<\/p>\n\n\n\n

All types of payments,\nfrom student loans to car loans, are cheaper to pay for each month when rolled\ninto a refinance, and a growing number of homeowners are taking advantage of\ninnovative new mortgage products to help them improve their debt to income\nratios and preserve their quality of life.<\/p>\n\n\n\n

Why\nIs Debt Consolidation refinancing so popular after the holidays?<\/strong><\/p>\n\n\n\n

  1. Gift Giving:<\/strong><\/li><\/ol>\n\n\n\n

    Let’s face it, we all love our families, and nothing makes us feel quite as good as giving the gift of their dreams.  Even if we have to stretch our last dollar or go into debt, it\u2019s hard for anybody to put a value on a smile this time of year.<\/p>\n\n\n\n

    2. Increased Housing Cost:<\/strong><\/p>\n\n\n\n

    In most of the country, holiday spending is accompanied by cold weather, which means higher heating bills in most states.  With oil and gas prices at record high levels, and houses being built bigger than ever, heating expenses are rising rapidly.<\/p>\n\n\n\n

    3. Travel Related Expense:<\/strong><\/p>\n\n\n\n

    Whether you’re driving or flying, chances are you travel more than twice as much as usual in the months of November and December, and all those miles cost more than ever because of fuel costs and higher tolls and taxes on travel to fund security initiatives in this post 9\/11 world. With schools closed, many families make trips to vacation destinations, which can really ring the register!<\/p>\n\n\n\n

    4. Hospitality:<\/strong><\/p>\n\n\n\n

    If you’re not traveling much, that’s\nprobably because everyone is coming to YOUR house.  And while playing the\nhost can be a lot of fun for everybody, throwing a party can get\nexpensive.  If you’re the type that loves to entertain, your credit cards\nmight be feeling the effect right now.<\/p>\n\n\n\n

    What\nCan Debt Consolidation Refinancing Do for You?<\/strong><\/p>\n\n\n\n

    1. Lower Your Total\nMonthly Spending:<\/strong><\/li><\/ol>\n\n\n\n

      Consolidating your debts can reduce your total monthly spending, even if you just look at the minimum payments, by half or more.<\/p>\n\n\n\n

      2. Make One Payment:<\/strong><\/p>\n\n\n\n

      You can choose to refinance all of your debt into one loan, which means just One easier to make payment each month.<\/p>\n\n\n\n

      3. Improve Your Credit:<\/strong><\/p>\n\n\n\n

      By reducing your total monthly spending, you decrease your total Debt Ratio (often referred to as Debt to Income Ratio) making you a more attractive candidate for financing.<\/p>\n\n\n\n

      4. Reduce Your Overall Interest Rate:<\/strong><\/p>\n\n\n\n

      Interest rates on credit cards can be as high as 40% and even car loans average more than 9% once all factors are considered.  Borrowers with more debt than they could realistically pay off in 3 months can save thousands of dollars in interest each year. <\/p>\n\n\n\n

      5. Take a Break from Making Payments: <\/strong><\/p>\n\n\n\n

      Ask about minimum payment refinances\nwhich may allow you to make no payments for as much as 90 days with start rates\nof 0% or 1%, which are incredibly popular for debt consolidation because you\ncan stop making all payments for a few weeks or even a couple of months.<\/p>\n\n\n\n

      How\nCan I Qualify for a Debt Consolidation Refinance?<\/strong><\/p>\n\n\n\n

      1. You Must be a Homeowner<\/a><\/strong><\/strong><\/li>
      2. You Need to Have Equity In Your Home:<\/a><\/strong><\/strong><\/li><\/ol>\n\n\n\n

        The current market value of your\nproperty should be worth more than what you currently owe on your\nmortgage.  There are exceptions to this rule for borrowers with excellent\ncredit, who may borrow up to 125% of their homes value.<\/p>\n\n\n\n