Debt Management: How Much Can You Milk Your Home For?By Debbie Wilson
Loan Page Columnist
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If you bought your home late in life, or had to dip into your home's equity to fund big expenses like college tuition, medical bills, or home repairs, you could very well find yourself still paying off a mortgage deep into retirement. On the brighter side, there is a way to fight back through debt management techniques.
Reverse Your MortgageIf you love the home you're in and have no great desire to sell or move, one great way to hold on to your home and preserve your standard of living is through a reverse mortgage. By refinancing into a reverse mortgage, you can erase your monthly payment debt as well as many other worrisome expenses such as credit cards, medical bills, college tuition, home repairs and maintenance, and much, much more. And while this debt management technique certainly won't work for everyone, it can be an ideal mortgage solution for many of today's elderly Americans.
Credit Card ConsolidationCredit card debt is another critical problem facing many individuals today. That is because it is easier to charge your expenses and pay later than to try to come up with the funds ahead of time. Unfortunately, therein lies the dreaded credit card trap--the one that seems impossible to escape from. To best control this cycle, you'll want to utilize a debt management technique called consolidation and elimination.
Consolidation refers to the idea of transferring high-interest rate credit card balances to one or two lower-rate cards. As far as the elimination debt management technique is concerned, you'll want to get rid of as many credit cards as possible, pay off balances in full as the bill comes due, and resist the urge to splurge if cash is not readily available.
Ultimately, with a few smart choices, you too could be pursuing a debt-free lifestyle while still enjoying all the comforts of home.
About the Author Debbie Wilson owns and operates a lakeside resort. Her previous experience includes profitability consulting for a national healthcare company. Debbie holds a B.A. in Business Management with a minor in Physical Education.
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