Celia Therapy

What are your options? Weigh the pros and cons.If you can qualify for a mortgage, borrowing against the equity in your home to consolidate all of your debt does have certain benefits, as well as real pitfalls. On the positive side you can immediately eliminate monthly payments. You can also stop bill collectors from calling or taking
 legal action because, after all, you’ve paid your debts in full. Finally, the process may actually help you improve your credit rating. First of all, you have to be able to qualify for a loan or a mortgage. You risk losing your home if you’re not able to maintain the payments set up when you borrow against the equity in your house. The debt you’re paying off is not eliminated, it is simply restructure and you run a risk of overextending yourself again. And something a little less tangible, but still very real, you may get a false sense of security… a feeling that the debt is no longer there when in fact it’s tied up in your home. Would a debt consolidation service or consumer credit counseling program be better?Signing up for a debt consolidation service or consumer credit counseling program will immediately decrease your monthly payments to the debts you still owe. Bill collectors will not be harassing you as much, though there is the possibility that collection action will not go away entirely. The programs do teach better money management skills and are successful in eliminating penalties, interest and additional fees on the debts you already have incurred. However, you will not be able to get new credit cards while in the program and you’ll need to qualify by having a certain level of unsecured debt because these programs only work with unsecured debt. If you’re behind on your mortgage you could still lose your home. And it’s possible that participating in such a program may have a negative impact on your credit rating. A couple of tips before you join.