2 Thoughts on Is it better to refinance at higher (sub-prime) rate or enter a Debt Management Program when having trouble?
  1. Reply
    James D
    July 31, 2011 at 7:29 am

    I’d say the two key questions to answer are:

    1) Will the refi lower your payments to the point that you can afford to make them?

    2) Can you benefit tax-wise from the deductible interest?

    I would say that if you can answer “yes” to both, it might be the way to go.

    Since a higher interest rate means more interest that you can potentially deduct from your income taxes, it would mean a lower tax bill or higher refund for you. If you already itemize deductions (and any homeowner with a mortgage who doesn’t would be rare), this is a no-brainer.

  2. Reply
    July 31, 2011 at 8:21 am

    The most important way to get out of debt is to make your income exceed your expenses. If you have gotten a hold on your expenses you have a chance of getting out of debt.

    Be very careful when choosing a debt management because there are a lot of scammers out there. But a legitamite Debt Management program should be able to help you.

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