Bankruptcy Versus Home Equity Loan
Instead of going through this expense and hassle, not to mention the residual damage to your credit scores, why not get a bad credit home equity loan? Bad credit debt consolidation loans can help you keep your house by paying your past due debt, paying off collections and judgments, and not just preserving credit scores but actually raising them by lowering your debt ratio.
Even with the rates being higher than for those with good credit, bad credit home equity loan rates are still lower than the 18%+ rates of credit cards and way better than the nearly 30% rates you’d pay if you’ve missed a payment on only ONE of your credit cards or if you’ve gone over your credit limit. This is called a universal default rate, a provision more and more creditors are implementing. This year, 45% of banks surveyed by Consumer Affairs (CA) said they have universal default policies – a slight increase from last year’s survey.
Refinancing debt with a home equity loan will save you the stigma of trying to get a home equity loan after a bankruptcy which is typically worse than getting a bad credit loan. Getting a home equity loan now can set you up for lower rates for years to come after establishing a positive payment history with your loan and not re-incurring debts. This typically takes about 2 years, which is a lot less than the 10+ years it would take for a bankruptcy to come of your credit reports.
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Maria Ny is an acclaimed free-lance writer from San Diego, California. She has published many articles that covered a broad range of subjects ranging from Bill Consolidation, Bankruptcy Reform, Home Equity, Credit Repair to Subordinate Financing. Check out her helpful tips and home finance articles online at Nationwide Mortgage Loans and learn everything you wanted to know about mortgage refinancing. You can learn more about financing credit card debt and get additional loan parameters for debt consolidation loans. Get a free loan quote for debt settlement We suggest you get more information and learn more about Finding a Bankruptcy Lawyer in your area that would help reduce your monthly payments and become debt free. Article Source: http://EzineArticles.com/?expert=Maria_Ny |