Is Getting Another Loan Really A Good Idea?
Think about it.
You can’t borrow your way out of debt.....even with lower payments.
Loans still have to be paid back
....and more loans just means you end up paying more money
....at best....stretched out over a longer period of time.
And, the home consolidation loans have an extra, often overlooked aspect that is particularly devastating for some, even causing them to lose their homes! Once you attach the debt to your home, debt that could have been discharged in bankruptcy with little or no payment at all now has to be paid back in full! Particularly dangerous are the new 2-28 forms. These are mortgages that have a two year fixed "teaser" rate, then the payments, in many cases, will nearly double! This costs many people their homes when the payments increase and they are unable to refinance their homes.
So, if you are being approached by lenders, mortgage brokers and others trying to talk you into “taking some of the equity out of your home to lower your monthly payments” run – don’t walk – quickly the other way.
What you want is no payments, not lower and longer payments.
You still have to pay the whole debt back, and the longer the re-payment period, the more payments you have to make and the more "interest" you end up paying.
Let's say it another way.
Nobody ever got out of debt by borrowing more money.
Don’t settle for more loans or even lower payments
....when what you really need is to get out of debt.
There is another way
....Bankruptcy.
In a Chapter 7 bankruptcy...You can get rid of certain debt with “no” payments. In chapter 13, you can pay only pennies on the dollar in some cases.
It doesn't get any better than that.