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You go to your mailbox to get the daily mail and it’s overflowing with credit card offers. This may not sound unusual to you but if you are paying attention you’ll realize that there are more offers than before.
Maybe you think to yourself “My credit must have improved” or “maybe they don’t realize my credit isn’t that strong. Either way you are probably wrong. The credit card companies are targeting you because your credit isn’t strong. And they know you are probably in need of some more credit. Before the whole mortgage mess, consumers would jack up their credit cards to the limits and then just refinance all their credit card debt into a new more affordable mortgage loan. Now it is either very expensive to consolidate into a new mortgage or you just can get a mortgage at all. So what is a consumer to do? Well just get some more credit cards that’s what. I’m sure you’ve heard the expression “turn lemons into lemonade”. That is exactly what these companies are doing and then some. Instead of waiting to hear from you they are bombarding consumers with credit card offers. If a homeowner can’t free up their existing credit cards through a refinance they are more than happy to just give you some more credit cards But these credit cards come with a hefty price tag. These are not those low interest cards like you might have seen a year ago. No, these cards come with a hefty rate of 18% and up. The credit card companies know you need their life line and they are happy to throw you a rope to hang around your neck like a noose. They know it has becoming increasingly difficult to file bankruptcy so you are stuck with the debt until you die. Before you accept these predatory credit cards look to see what your other options are. You may be able to refinance and consolidate your debt although your rate may be higher than 6 months ago. Too many people make the mistake of turning down a mortgage rate of 9% or 10% because they presently have a rate of 5% or 6%. That can be a big mistake when your credit card debt is costing you over 16% Many consumers would benefit by slashing their monthly payments through a tax deductible mortgage, but get too hung up on the interest rate. If you are considering refinancing to consolidate your debt and don’t know where to turn go to www.NARLO.com for an honest trustworthy loan officer. Either way beware of the credit card offers in your mailbox from a credit card company trying to cash in on your mortgage misery. You don’t want to be another casualty of the mortgage mess! Marc Savage is a Nationally Recognized Mortgage Expert and Host of Your Home Your Money on AM 540 WLIE Saturday Morning at 10AM. Marc specializes in helping homeowners who have had a bankruptcy or other credit challenge find payment relief, achieve financial security, restore their credit and receive peace of mind. He is also a founding member of the National Association of Responsible Mortgage Lenders. Visit his website at http://www.yourhomeyourmoney.org for more information or call him direct at 800-592-5626. |
