Second Mortgages Tips: How to Get Out Of the Credit Card Debt Rut
If you find yourself swamped in credit card debts, second mortgages can be your best option. Sometimes credit cards can put you in a financial situation that makes you miserable more often than it makes you financially secure. Yet, it seems so difficult to get out of debt because it keeps drawing you back in, especially when you own several plastic cards for all your purchases and financial transactions. Here are some ways of using second mortgages if you have finally considered ending your credit card debt for good and rebuilding your credit.
Don’t Mistake Your Credit Card for Cash
This is a bit fiddly because, practically speaking– oftentimes you will realize it is a debt when you finally receive your billing statement. Many credit card holders treat their plastic cards like cash and even use it as an ATM-where they can withdraw money anytime. It’s like credit card use is almost addictive-because the moment you use it out of habit, it is difficult to stop; even on the days when your finances are on the rocks and you can’t seem to pay back all your debts.
If you are trying to break free from debt that gets worse as the time goes by, one strategy is to re-frame your thoughts about money and debt, in order to gain a healthy financial perspective. A good example is to stop using your credit card for a week even if you feel a deep longing to spend again. Instead of yielding to it, you could simply cut your plastic card and tell yourself that saving is worth it. Remind yourself, “It’s not cash. Credit card debt is a debt, no matter how accessible it is”.
Applying for second mortgages is also a good starting point because you know what’s at stake when you default on payment. Your property would be a constant reminder that you can lose something really valuable if you don’t make an effort to manage your finances wisely.
Lock Yourself in a Strict Financial Plan
Avoid the temptation of using your credit cards again, meet your financial objectives and rebuild your credit by coming up with specific strategies to implement your financial goals. These plans must include secondary mortgages as a financial option for paying outstanding credit card debts with high interests.
You may currently have a lot of default notices but your income is not enough to pay them all. Instead of getting a cash advance from one card to pay an outstanding high interest credit card debt, you could replace this with a secondary mortgage that can help you pay not only your credit card debts but all other outstanding debts as well. With a good amount of money to help you start with a clean credit record, you are likely to feel better and empowered to create and stick to a financial strategy for a debt-free future. The more you practice following your budgeting and other financial plans, the easier it will be to resist the old habit of maxing out your credit cards.
Want to learn more about second mortgages and how they can help you take control of your finances? Contact NSW Mortgage Corp today!