treating the symptom and not the real problem
Richmond, VA (PRWEB) July 05, 2017
Remortgaging is being touted as an easy and quick way to access extra money using your existing home’s value but National Debt Relief points out the potential risks it entails. The article published May 18, 2017 and titled “Why Remortgaging Can Make Debt Even Worse” aims to educate consumers on the potential downside this repayment program brings to the table.
The article opens up by giving an insight on the possible reason people are remortgaging to get a handle on their repayments. One reason is that as consumer debts increase, interest rates on mortgages are relatively lower than most credit options. This situation positions home mortgage as a very enticing way of consolidating debt.
One of the things that consumers could be overlooking as they focus on the benefits of remortgaging is the fact that that might pay more over time. While it is true that there are cases they pay a smaller monthly amount, they could end up paying more at the end of the loan because interest was simply spread over a longer period of time.
The article also explains that as inviting as the low interest on remortgaging is, it is not an exact science and tends to be unpredictable over time. It is even more of worry for consumers who are not a fixed-term loan. This is because interest rates continuously move and it could result to an even bigger debt that people initially bargained for.
It is also important to take note that remortgaging can be one classic case of treating the symptom and not the real problem. The article explains that it is important for people to get to the root of their financial problem. They need to understand why they were in so much debt and address that concern. Otherwise, they run the risk of getting into unmanageable debt again.
To read the full article, click https://www.nationaldebtrelief.com/remortgaging-can-make-debt-even-worse/