Your One Stop Resource for Saving Money.
Information about consolidating secured debt - The Bills.com Blog
Bills.com Blog > Credit Questions > Consolidating Secured Debt
Information about consolidating secured debt
Question: My name is doug and my bills are all shot.Truck,SUV,bike, home and 2nd mortgage are all going down the drain.In the last 6 months I have been struggling and cant seem to catch up.I have had to buy a new furnace and that soaked me.Is there a way of saving it all and making it all one secured payment,my over all balance is $110,000.
Thank You
Douglas Matthews
Answer: Douglas, thank youfor visiting Bills.com. Given most of your accounts are secured loans (Truck, SUV, Bike, home, 2nd mortgage), there are limited solutions to your predicament. Major factors to consider here are your income, your balances, your interest rates, and your
creditors. I think that your priority should be to save your home. Depending on the balances on your primary mortgage and your 2nd mortgage, the amount of equity available, and your current credit rating, a refinance option is best for you because getting an unsecured
loan to the tune of $1,10,000 is just not possible in the currentmarket.
First, you should carefully review your finances to cut expenses wherever possible, to free up as much cash as possible to apply to your debts. I have attached to this email, a free budgeting guide provided by Bills.com, this would be a good place to start. You can also find the
guide on our website at http://www.bills.com/guide/ It is important that you are honest with yourself and eliminate all of your unnecessary expenses. You might want to seriously consider selling one or even two of the vehicles and then retain only one that you really need on a daily
basis. I know this seems harsh but when you put the importance of your home in perspective,
I think you will agree with me that safeguarding your home is more important than having three vehicles. This is also
due to the reason that it is difficult to refinance vehicle loans or even consolidate them into one single loan. What concerns me most is the fact that you state that you are already behind on some of your payments. If that is the case then your credit rating might already be
adversely affected. This might hinder your chances of getting a good rate on your refinance.
The only way to determine whether or not you will qualify for a refinance loan is to apply for a loan with several different lenders and/or brokers. Not only will these mortgage professionals be able to tell you whether or not you currently qualify, but if you do not qualify, they can tell you what aspects of your financial situation are
causing you problems, and make suggestions about how to improve your chances to qualify for a loan. They may also be able to direct you to other available resources available to assist you in saving your home.
Very quickly, I want to point out that Bills.com makes it easy to compare mortgage offers and different loan types, If you would like to read more about mortgage refinance loans, I encourage you to visit the Bills.com Home Refinance Resources page at www.bills.com/home-refinance
. If you enter your contact information in the Bills.com Savings Center at the top of the page, we can have several pre-screened mortgage brokers contact you to discuss the loan options available to you.
If you find that you do not qualify for a conventional refinance loan, you may want to consider selling your home. While I know that selling the home may be an unpleasant thought, selling the home on your own terms is certainly preferable to the possibility of losing the equity you have worked hard to build in foreclosure proceedings. If you think that selling your home may be the best course of action to take, you should speak to a real estate broker to determine the current prices in
your neighborhood and whether or not selling your home is a wise decision under current market conditions.
You should also contact your current mortgage company and other creditors to discuss any assistance they can offer you with your loan payments. Many mortgage lenders will assist borrowers, especially those with extreme financial hardships such as yours, with bringing their loans current.
I hope that this information will help you Find. Learn. Save.
Best of luck,
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
Submit questions/comments about this post:
Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!
© 2006 - 2008Bills.com LLC. All Rights Reserved.