Debt Consolidation

Debt Consolidation can be a life saver. When you get rid of or significantly reduce your high interest credit card debt you can take control of your other debts and see the light at the end of the tunnel. There are lots of ways to get out from under your credit card debt.

The first way is to make extra monthly payments on your credit card to reduce the balance. If you are just paying your monthly minimums you aren't going to see your balance go down very fast if at all. There are quite a few ways to go about this. You can have a written out plan so you know every month how much extra you are paying and to which debt. It takes dedication and commitment, but you will see your credit card debt go away. A good tip is to start with your lowest balance. There is a nice sense of satisfaction getting a card paid off and it will get rid of a monthly payment that you can put toward another credit card.

Another way to get rid of your debt is to consolidate your debt into your mortgage. If you have some equity built up in your home, one use for that equity can be to get rid of higher interest debt that isn't tax deductible.

You don't want to use the equity in your home without serious consideration. You've worked hard to build up your equity so you need to use it wisely. If your debt is growing and you are having a hard time getting out from under it, debt consolidation might be what you need.

When you consolidate your debt you take money out of your equity by refinancing. The money you take out is applied to the debts you want to pay off. You can pay off credit cards, student loans, cars or anything else that needs to be paid off. The advantages are that the interest you pay on your mortgage is likely tax deductible, you save money every month by having fewer bills to pay so your cash flow goes up and your most likely saving money by paying less overall interest.

The questions to consider are the cost of debt consolidation. When you refinance your mortgage there are fees associated with the process. You also need make sure that using the equity in your home is the best option available.

If you are interested in debt consolidation give us a call or drop us an email and we will be happy to answer any and all of your questions.



Kansas City Mortgage Group
www.kansascitymortgagegroup.com

The Federal Reserve Does Not Change Interest Rates

The Federal Reserve did not change rates after they met on August 7. This is the 9th time in a row they have left them alone.

For you, this means your credit card interest rate and Equity Lines of Credit will stay the same as they are directly based on the Prime Rate.

In the statement the Federal Reserve brings up the credit conditions becoming tighter for many households but also that job growth is still positive.

The voting to keep rates the same was unianimous.

Kansas City Mortgage Group
www.kansascitymortgagegroup.com

Source
Parsing the Fed Statement
The Wall Street Journal OnlineAugust 7, 2007
http://online.wsj.com/mdc/public/page/2_3024-info_fedparse_shell.html

Sub Prime Mortgage Radio Show

Owner and Mortgage Consultant of Kansas City Mortgage Group, Mark Rome, appeared on KCUR's Up To Date with Steve Kraske of The Kansas City Star. The discussion included a representative from Homefree USA and Paul Coquillette of the Federal Reserve Bank of Kansas City.

The topic was Sub-Prime loans, forclosures and how this is affecting Kansas City Mortgages.

The conversation can be downloaded as a podcast.

Kansas City Mortgage Group
www.kansascitymortgagegroup.com