Secure Your Debt despite Dwindling Home Equity

Is your home still an investment?

It used to be that owning a home was an investment; however, in the United States homes have been losing their value at a rapid pace.  California , Florida and Nevada are the big three with poor housing markets, but this does not mean the rest of the country is perfect. All over homes are selling for far less than what they are worth, which may seem great for the buyer but is disastrous for the seller.  Additionally, with the decline in home equity comes stricter lending policies and a higher chance for rejection when refinancing.

Everyone is trying to refinance.

It seems like a good time to refinance your home and free up some extra cash with interest rates being at an all time low.  However, a great number of refinancing applications are being rejected.  This is due to declining property values.  The banks are refusing to take on the risk to refinance a home for more than what it is currently worth, regardless of what the owner may have paid when the market was booming.  Therefore, refinancing is becoming less of an option for freeing up cash to pay off debt.  Instead, many people are turning to debt relief to solve their unsecured debt. 

Realize there are other options.

Even though refinancing seemed like a better option when dealing with your unsecured debt, it just was not possible.  Luckily, there are options that allow you to keep your home and pay back your debt.  A debt relief company can work with you and the credit collectors to settle your debt, often for less than what you owe.  In the case of a debt settlement program you will begin to save money in a savings account, which will eventually be used to settle your debt.  

Your path to financial freedom is closer than you think.

It is unfortunate that the countries housing market is in such a slump and with recovery feeling like a far off dream you could be feeling overwhelmed as to how to settle your debt.  While the market may remain unpredictable and continue to possibly fall, you can still get back on your feet financially.  Finding a debt relief program that is right for you may take some time, but you will find freedom in the end result.