AMERICANS IN DEBT

Guilt is a fact of life in America is a national obsession with debt help. Search for "debt" on Google attracts more than 34 million pages, Yahoo and MSN - which constitute more than 12 million pages.
To reduce the average American family $ 9,300 in credit card debt, but the proportion of income goes to credit card debt, fell by 0.3 percent.

The growth of private debt can not all be blamed for cost overruns. Adjusted for inflation, wages in the last five years flat, while spending rose for basic goods and services such as accommodation, food, medical care and transportation of more than 11 percent, according to recent Federal Reserve Survey of consumer finances.

Housing debt

Based on this study, Washington Post recently reported that
Wines of the typical American family earns about $ 45,000 per year 33.1 percent increase over the 2001 to 2004, adjusted for inflation. Housing debt, largely due to the fact that housing prices have risen, and people borrowed against equity in their homes has increased: from 1989 to 2004, for example, the average mortgage debt more than doubled, from $ 46.900 to $ 96,000

This trend is one of the main refinancing operations strategies for debt relief. It takes different forms: first mortgages, second mortgages, debt consolidation loans and credit lines in their own homes. These loans can be a percentage or a fixed interest rate loans are fixed.

There are many sites on the current interest rates to preserve and provide free based program that is best for borrowers with mortgage loans on such factors as credit history, FICO score, type and amount of mortgage loans. www.LowOwe.com specific web sites to help customers reduce the monthly cost of home ownership through refinancing.

A debt consolidation loan

Debt Consolidation Home Equity Loan turns passive assets - cash for debt relief. It is easier to obtain than other types of loans, because loan is secured by tangible property. It makes more sense than borrowing against cash value life insurance or pull money from a pension or 401 (k) account.

No new or refinanced loans actually reduce debt, but they can not, he once again form: benefits are payable to the situation as a result of high interest credit cards and other revolving debt, what home improvement, increasing the market value of the house, with a single monthly payment low interest rates plus an additional problem in that the interest on the loan or mortgage is usually tax-free.

But do not wait too long to refinance. CNNMoney.com reports that "real earnings of real estate to an abrupt halt in the first quarter of 2006 came. Medium home prices in the U.S. fell by 3.3 percent in the fourth quarter of 2005. ... The prices flat or lower during the quarter, as stocks increased spending and expanded buildings, and their time to market, according to a survey of 149 markets, the National Association of Realtors. "

Even if the feds have to keep raising interest rates, refinancing mortgages and home equity loans, preferred form of duty to help homeowners who are in a financial emergency. During the national saving rate below zero, the equity is the only asset many people.