To refinance credit card debt means to take out a new loan usually with favorable terms to cover your credit card debts. This is one way on how to get rid of those credit card debts that continue to bother you. But you will have to apply for this loan and you need to have a good credit standing to qualify, and/or equity in your home.
When you choose to refinance credit card debt, you will apply for a single loan to pay off all of your existing credit cards. It will give you the convenience of making just one monthly payment than to distribute monthly payments to different credit card companies. You can avoid those harassing phone calls from collection companies because you’ve already paid them off.
One way to refinance credit card debt is to have an application for a second mortgage or home-equity loan. Another way is to transfer several credit card balances into another credit card with a high limit and low annual percentage rate (APR). A home-equity loan means that you are putting your house as collateral on your debt. If you do not repay your home-equity loan, you could lose your house.
When you decide to refinance by getting a home-equity loan, talk to different lenders to get the best deal possible. Banks, as opposed to mortgage brokers will typically give you better rates and much lower closing costs.
Ensure that there is no penalty for early repayment of the loan. Borrow only enough money to pay off your current credit card debts. It can be tempting to borrow up to the full value of your home, but this will just lead you to another large debt for you to pay off.
Cancel all the credit cards once they are paid off. You do not want to regress to your old ways. You should pay-off the second trust deed or home equity loan as quickly as possible.
Refinance by transferring balances to your other credit card. Find the right credit card which has a high limit and low annual percentage rate. Make sure you read the fine print-credit card companies can be very sneaky!
Some cards offer a great deal or promotion for balance transfers. You may be able to negotiate with one of your existing credit cards to get your limit raised and your annual percentage rate lowered.
Transfer all of your outstanding balances to the designated card to refinance credit card debt. Do not incur new charges on that credit card to which the balances have been transferred. Try to pay at least 5 to 6% of the balance of your credit card every month. Pay well above the minimum payment or better yet, perform double payments.
If you cannot refinance your credit card debt, you may seek the advice of a debt consultant. There are programs and strategies that can diminish your debt in approximately 2-4 years.
Debt Free Solutions is a debt consulting company located in Long Beach, CA. We have been in business for 10 years. We assist Americans across the U.S. to eliminate excessive credit card and other unsecured debt.
We utilize various programs and strategies to aid them in dissolving their debt in the quickest, safest, and most efficient method possible. We also analyze the risk factor. We structure our programs to drastically minimize the risk that is inevitable with all debt elimination programs.
We offer our clients much more than a debt settlement company does. The vast majority of debt negotiation companies simply settle your debts on your behalf with your creditors- nothing more.
On the other hand, we provide free services to significantly help to minimize the risks that are involved in negotiating with your creditors.
First, we offer a free, no-risk 10 day trial service. During our free trial, we negotiate with your creditors on your behalf to lower your interest rates. Also, we research to see if you have any old debts that you are not legally liable to repay. If, for any reason, you are not completely satisfied, you simply walk away. No commitments. No contracts.
Next, we provide a comprehensive credit repair service to all our clients. This is a $795 service that is absolutely free!
Also, we offer free attorney consultation (a maximum of five sessions) in case one or more of your creditors makes any threats.
Last, we provide a written guarantee that our clients’ creditors will settle for an average of 50% or more for all of the debts they attempt to negotiate.
Our services are competitively priced- and include the above free services!
Joseph Hernandez
CEO
Debt Free Solutions
www.debtfreesolutions.mobi
(800) 668-8090
It’s critical that you choose the get out of debt. You need to weigh the pros and cons of each program to determine which program is best. Choosing the wrong program may cause a financial disaster!
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