No financial planner would never recommend a mortgage refinance (one form of debt consolidation) to get out of credit card debt. It is the substitution of collateral for unsecured debt and you could lose your home in a lot of unsecured credit card if you are injured or can not pay their new higher monthly payments.
In addition, and these are verifiable published reports, 77% of all people who refinance their way out of debt Credit cards are back at the same level of credit card debt 2.5 years later on average, only now with less equity in your home. So which is obviously not solve the problem.
Why?
Because there was no need behavior modification. It was very easy Back to just refinance out of cc debt. No financial planner increasingly recommended route.
According despite having to go without using cards credit of 2 to 3 years and go through behavior modication. Credit counseling entries on your credit report are as bad as bankruptcy entries. They block your FICO for 10 years and bring you a FICO 700 to 500, low overnight.
Debt settlement instead is only a late payment on your credit report. Late pays bring down a 700 FICO about 40-50 points, reduce from 600 to about 30 points in FICO, and lower than 500 Ficosa of 10 to 20 points. But most importantly, the FICO goes back more than the fall from late payment and eliminate the debt so their debt to income ratio reduced to zero and your FICO is back up higher than it was before join a settlement program even with the late payment by,
but we demand the withdrawal of pay late entry as part of a negotiated solution and achieve that 99% of the time.
Superior debt relief is debt settlement company only pays for three levels of credit restoration after taking up the FICO greater.
Settlement is one of the methods used by mortgage consolidation people to get a qualified person in a house that was denied financing due to a very high debt to income ratio.
Peak Oil Preparation: Get Out of Debt 1/3 – Michael Ruppert
