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Second Mortgages Trade One Debt For Another
If you're dealing with excessive personal debts, you've probably noticed advertisements promoting "debt consolidation for homeowners" and "homeowner's loans". Those advertisements are probably for mortgage companies who want you to mortgage your house. Mortgage companies often try to win you over with vague promises that the loan will give you enough money to pay your debts, take a vacation, buy new furniture, get a new car, and so on.
The mortgage is often a bigger debt than the loans it's replacing.
All you've done is trade a bunch of big debts for bigger debt -- A debt that can wreck your life.
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Before signing up for a second mortgage, consider these negative consequences:
 You're Paying Application and Broker Fees
Some mortgage companies charge you just for applying! Add in other charges like underwriting fees, broker fees, and closing costs, and you'll be paying hundreds of dollars just for the privilege of paying interest. That money should be going to pay your debts, not the mortgage company.
Your Payments Might Increase
If you've signed up for an adjustable rate mortgage, the mortgage company can actually increase the interest rates and charge you more. Even mortgages with fixed rates often have a "balloon payment" a final charge that's much higher than the monthly payments. Many people have struggled to keep up with mortgage payments only to be wiped out by the balloon payment.
No Way Out
If you do wise up and decide a second mortgage or homeowner's loan isn't the solution for you, the only way out is to pay the entire loan at once. If you could do that, you wouldn't need the loan to begin with!
You Can Lose Your Home
What happens if you can't keep up with mortgage payments? The mortgage company is allowed to repossess your house! (Some mortgage companies will actually loan you money they know you can't afford to pay back, because they can make more money repossessing your house.) And if they don't make their money back on your house, they can still go after you for the money. You could end up homeless and forced to declare bankruptcy.
Debt Consolidation Is A Wise Alternative To Risking Your Home
Want an alternative that doesn't involve risking your home?
Consider KCCA's debt consolidation program.
Instead of creating a new, bigger debt, we contact your creditors and renegotiate the original unsecured debts,
reducing interest rates and minimum payments. We then combine your debts into one low monthly payment for your convenience. Even though you'll be
paying less each month, you'll pay off the debts faster.
There are other benefits, too:
Your home is safe.
You don't need any collateral for KCCA's program, so you don't have to worry about taking your house. In fact, you don't even need a house to use KCCA's program!
No application fee.
Applying for our debt consolidation program is free -- just fill out the form describing your debts, and one of our counselors will contact you. You can even apply online!
No credit check.
Your past credit history will never prevent you from using KCCA's debt consolidation services.
Pay as you go.
Mortgage brokers take your money and run -- KCCA's plan uses monthly payments, so you'll know that we don't make money unless we're helping you.
Quit at any time.
In the unlikely event you decide that our program isn't for you, you can withdraw at any time and go back to paying creditors directly. (You can even call that mortgage company.)
Think debt consolidation might help you better than a homeowner's loan? Apply online for a free, no-obligation analysis by KCCA's professional credit counselors. Our analysis is easier than mortgaging your home, and you won't even have to talk to a lawyer!
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