Mortgage as a Debt Consolidation Tool: Desperate Measures for Desperate TimesBy Richard Barrington
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Debt consolidation is by no means a cure-all for debt problems, but used with planning and discipline it is a better alternative than bankruptcy.
The Threat of BankruptcyThe threat of bankruptcy is very real: more than 2 million Americans filed for bankruptcy in 2006. The trade-off used to be that in return for some embarrassment and limitations on your ability to get credit for ten years, you'd at least get some relief from your existing debts. However, a recent bankruptcy law means individuals filing for bankruptcy may still have to pay most or all of their outstanding debts.
What You Can Do: Refinance, Renegotiate, and MortgageDebt consolidation should not be undertaken without planning and a commitment to discipline. With those ingredients though, it beats bankruptcy.
If you can commit to the discipline, check through the list of specific steps you can take:
Richard Barrington is a freelance writer and novelist who previously spent over twenty years as an investment industry executive.
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