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i-newswire.com
December 7, 2005

Debt consolidation means one thing: a consolidation of multiple debts, into one debt, and one payment. Unfortunately, it is often paired with the word “loan” by banks and mortgage institutions offering a “debt consolidation loan” to escape from the debt pressure.

In reality, some of these debt consolidation loans end up as interest second mortgages on homes, or exorbitant home refinancing. Second mortgages on your home only increase the amount of money owed in the long run. By putting all of your debt on the most precious asset you have, you run the risk of losing your home for the sake of credit card or other debt. You may even be overextended to the point where you might not qualify for a mortgage. And if you do, the terms will not be favorable.

While individuals may approach their creditors to try and arrange lower payments, suspension of interest, and other ways in which to help relieve their debt load without declaring bankruptcy, a consumer is best served by using a good debt consolidation service. Debt consolidation experts are trained professionals with years of experience, in negotiating a debt consolidation into one low monthly payment, which in the end will benefit both you and the creditors. Companies or businesses that are owed money, would naturally like to see it paid. They are generally more receptive to the approach of a professional debt consolidation counselor with a well thought-out debt consolidation plan, than the individual debtor who may not have considered all the angles.

Whether you choose debt consolidation on your own, or though a counseling agency, be sure to carefully read the terms of the debt consolidation agreement which is drawn up between you and your unsecured creditors. Remember, this is NOT a debt consolidation loan. It is simply a consolidation of all debts into one monthly payment, which is more manageable with your budget.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.