Debt Consolidation Loans Are Getting Harder To Obtain

A lot is being written about debt and the many ways consumers are dealing with the record amount of debt in their daily lives. Today I want to talk about debt consolidation.

Ever since the Real Estate boom got underway in the early 2,000’s that bubble was fueled by artificially low interest rates, lax lending practices, predatory lending practices and skyrocketing housing values that made every homeowner feel a lot wealthier than he really was. Many took to the practice of using their homes as their personal ATM Machine.

Whenever the credit card debt got too large and the car payments became too restricting they would go to their Mortgage Lender and do a cash out refinance of their existing Mortgage, taking out an additional $50,000, $100,000 even $250,000 to clear up the debt and perhaps take a nice vacation.

Well with the bursting of the Real Estate bubble that option has been taken off the table. Many, many homeowners are finding themselves owing more to the bank than their homes are worth! Not only that, they have run up their credit cards again with no easy way to pay them off. The old way of debt consolidation is gone forever.

Dave Ramsey preaches of the debt Snowball method, this method attacks the highest interest debt first then when it is paid off you go to the next debt and use all your extra resources to get that paid off and so on down the line. The problem with this method is that it takes discipline and you must sacrifice to be successful.

A relatively new method of debt consolidation that is sweeping the nation are the Software driven Mortgage Acceleration Systems. These programs help people pay off their mortgages and debts in a fraction of the time, without refinancing (which is becoming harder every day), without making extra payments and with little change to their household budget.

Homeowners and even people that have a lot of consumer debt, student loans and car loans can qualify for these programs as long as they earn a little more than they spend. The programs guide people financially like a GPS System guides people to their destination.

Mortgage debt and consumer debt are increasingly taking their toll on the American people. It is everyone's responsibility to become more frugal and start living within their means and to think outside the box to find solutions to eliminate their debts quickly. As Einstein once said: INSANITY is doing the same thing over and over again and expecting different results!.


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