Credit Card Chaos - A Home "Refi" Can Help

Today's economy is putting a strain on many American households with higher costs across the board from groceries to maintenance costs. Credit cards have often been used as the temporary solution to these and other household costs, but with increasingly higher interest rates and striker limits being applied the credit card option is becoming more and more costly then ever.

A twenty thousand dollar amount on a credit card with a 15% interest rate can cost you as much as $325 a month in minimum payments (over a period of 10 years) with some credit cards having interest rates as high as 20% which can increase that minimum payment even more. This is also the minimum payment which means that a fair portion of that monthly payment is going towards interests and it will take even longer to pay off that twenty thousand dollars. Credit card companies will try to keep your favor by offering temporary lower rates and other incentives. These discounts may work well if you have smaller amounts on your credit cards, but if you have ten, fifteen, twenty thousand or more on your credit cards then this is by no means a solid solution.

            Are there alternatives out there? The answer is yes, and one increasing popular alternative is a home refinance loan. Refinancing your home can provide the cash that you need to pay off those higher rate credit cards and save you money at the same time. Taking our example from above, the same twenty thousand dollar credit card bill paid off with a lower rate home refinance loan would cost you around $205 a month saving you around $120 a month (on a similar ten year refinance loan).

            Goldstar Mortgage Financial Group is also offering a limited time $500 off of closing cost coupon on all loans which makes a home refi look very favorable. For more details call Goldstar Financial at 1-800-201-LOAN (5626).