Should I Pay Off My Second Mortgage Or My Credit Cards First?

When choosing between bad options, choose the one that harms you least. 

 You could lose your home
   
Your second mortgage, if you get into financial trouble, could cost you your house. Your credit cards, no matter how bad your finances get, can't put you out on the street, though they can wreck your credit rating if you go too long without paying them.

When Your Credit Card Bills Are Higher Than Your Mortgage

If you're paying more on credit cards than you are on the second mortgage each month, it's worth it to trim the fat off of your expenses and run that credit card bill down to nothing--then retire the card. Debt consolidations may be worth exploring in this instance.
   
Bottom Line

Unless your mortgage is "upside down," where the total debt owed exceeds the value of your home, you are almost always better off paying off the second mortgage ahead of paying off the credit cards if you have to make a choice between the two. If you are capable of paying both debts off, put extra money toward paying off the one with the highest interest rate.



For all Your Financial Needs, Visit:  www.CherokeeFinancialInc.com

How to Transfer Credit Card Debt to Avoid Interest

Credit cards are an ever-increasing part of our capitalistic culture and the credit card companies know this. They are raising interest rates and penalty fees, making it very easy for the average person to become consumed by their debt even more quickly than before. However, by making smart balance transfers, you can pay off your credit card debt and avoid paying those astronomical interest fees. It just takes a little discipline and organization.

Things You'll Need: Credit card offers






Instructions:
       
1. Make a list of your credit card balances. Organize this list by highest interest rate to lowest interest rate.
       
2. Search for a balance transfer offer with an introductory interest rate offer of zero percent.
       
3. Transfer as much of your debt as you can to this card, starting with the balance on your highest interest rate card.
       
4. Find as many zero percent interest rate offers as you can qualify for, and continue to transfer your debt with the highest interest rates.
       
5. Create a spreadsheet to keep track of when your introductory offers will end.
       
6. Repeat steps 2 through 6 one month before the end of each of your introductory periods.

If you can make more than the minimum payment every month, do it. This will help you pay down your debt even faster.

Balance transfers can take a few weeks to be finalized, so if your due date is coming up, check with your credit card company to see if you need to make a payment. You don't want to end up with a late fee after you've done all this work!

Read the fine print with every offer!

NOTE: You must transfer your balances again to another zero percent interest offer before your existing introductory offer is over. Otherwise, you will get slammed with their interest rates while you are looking for another offer.

For Some Of The Best Offers for Lower Interest Credit Cards and Balance Transfer Credit Cards, Visit: www.CherokeeFinancialInc.com

How to Get a Debt Consolidation Loan without Owning a Home

It's always better to avoid a debt crisis than it is to manage one after it has destroyed your credit rating. Before signing up for a debt consolidation loan without owning a home, consider using credit card balance transferring as a means to consolidate debt. If you have multiple credit cards you can often transfer the balance from a high interest card to a low interest card thus trimming back your monthly payments. If that doesn't help then debt consolidation loans are the perfect solution.








Instructions:

1. Getting a debt consolidation loan with owning a home is easy, as many agencies provide unsecured loans for this purpose. However, there are steps to be taken to ensure you are getting the right loan for your situation and be aware of any offer that appears too good to be true. Chances are it's a scam and you are its newest potential victim.
       
2. To get a debt consolidation loan without owning a home you will need to have a good credit rating and an appreciable income because you will need to be able to prove that you can afford to make the monthly loan repayments.
       
3. Take some time to work out your monthly payments, interest and fees on your current debt accounts and plan a workable budget. This will give you a good idea of what you can afford each month for loan repayments.
       
4. Shop around when seeking a debt consolidation loan without owning a home as interest rates and set up fees will vary greatly between different finance companies. Always check out the company's reputation and service history.
       
5. Take your current debt documentation with you including your budget and look at how the debt consolidation loans repayments will factor in.

You want to be sure that you are saving a decent amount each month over your current costs. Then compare the figure with what you need to pay for the debt consolidation loan. Double check your monthly payment on the consolidation loan is less than your other debt payments.

Before you sign anything, be sure to check out all of the associated costs you will have to pay.

Read your loan contract thoroughly.

The down side to unsecured debt consolidation loans without owning a home is that they involve longer repayment terms. The lower monthly payment may offer relief but in the end, you will be paying back much more in total interest.

For All Your Prepaid Debit Card, Credit Card, Loan & Credit Monitoring Needs, Visit:
www.CherokeeFinancialInc.com

When You Pay Off A Credit Card, How Long Does It Take To Show On Your Credit Report?

Paying off credit card debt is a major stress reliever and a financial achievement for anyone who has previously struggled with debt and credit score problems. It often takes years or even decades to get out of debt. Significant credit card debt can negatively affect your credit for a long time, denying you the ability to buy a house or car or secure another type of loan. Thankfully, credit card debt and its effect on credit scores are temporary. Your credit score improves once the debt is paid, though the amount of time it takes to improve varies by situation.







Billing Cycles

A paid-off balance usually will show up on your credit report within one to two billing cycles, or 30 to 60 days. Sometimes it shows up faster; it depends on when the credit card company reports the payment to the credit bureaus. Check your credit report a month after paying off your credit card. If you do not see the payment reflected on your credit report, call the credit card company to find out when they will be reporting the payment. Request that they report it as soon as possible.
   
Negative Records

If your credit card was seriously delinquent, it might take more time for the delinquency to disappear from your credit report. Credit card accounts that are charged off or sent to collections are reported to the credit bureaus. Those charges stay on your credit report for seven years. Bankruptcies stay on your report for 10 years. If you pay the card off, it will be marked as "paid" on your credit report, but the
charge-off or collection status remains for seven years.
   
Errors

If you paid off a credit card but the payment has not shown up on the credit report for several months, it might be due to an error on your credit report. Call the credit card company to make sure they reported the payment to the credit bureaus. If that does not resolve the issue, send a letter to the credit card company requesting that they review the situation and include all supporting documents, such as bank statements that verify the payment amount and date. The credit card company is legally required to investigate and report back to you within 30 days. If an error is determined, the credit card company will contact the credit bureaus to update your credit report.
   
Effects of Paying Debt

In almost all cases, paying off your credit card will improve your credit score. It might improve it slightly, or it might improve the score significantly. Several variables affect how much your score will change, including the limit on the credit card and your overall debt and financial history. It might be more beneficial for you to pay off the card but keep the account open rather than close it completely. Use the card to make purchases, then pay off the debt immediately each month. This will demonstrate responsible use of the card, which will help your credit report and credit score.

For All Your Credit & Prepaid Debit Card Needs as well as Personal Loans, Auto Loans & Credit Monitoring, Visit:
www.CherokeeFinancialInc.com