With the economic squeeze the country is in, a lot of us are feeling the effects, and a lot of people around Atlanta – okay, around the country – have had to rely on their credit cards for everyday expenses.
And, we’ve all done it. ”Well, just this time, because things are tight, and I am sure I will be able to pay off this balance next month…”
We wake up one day six months later with a large credit card balance hanging over our heads – and a news cycle that constantly reports that the President or some economist is stating how bleak the economic future could be, the deficit is at an all time high, and wondering if super inflation is just around the corner. Then it sets in: heartburn.
A quick solution
Well, it used to be commonplace, and perhaps too much so, to roll everything into a new, low-rate mortgage. That said, if you find yourself in that position and have some equity in your home, a debt consolidation refinance could be a good option.
monthy cash flow savings
The above chart shows a real example of a loan I closed for a client just recently. I will explain each line, briefly.
- The top number represents their prior mortgage payment + minimum credit card payments for the cards that we rolled into the new loan.
- The Second line is the new mortgage payment, with the credit card balances rolled in.
- Line 3 is the monthly cash-flow savings from month 1.
- Then come the closing costs to close this loan for the client.
- And the last line represents the number of months to break even.
Related posts:
