Potential relief to borrowers on the horizon

The potential for some mortgage relief still appears to be on the horizon. Many experts believe that a 4 1/2 % fixed rate for 30 year mortgages is around the corner, possibly as early as January 2009.

Many people have been affected by their credit card company's adjustments of interest on unpaid balances to as high as 29%. Both federal and state legislators have been made aware of this and are attempting to provide regulations outlawing this practice. Some banks allow the debtor to remain at the lower initial rate with the provision that the account be closed upon repayment. It is still possible, if you shop craefully, to find lower interest rate credit cards and transfer the outstanding balance to the lower-rate card.

Credit Counselling


Some of my credit counselling clients have reportted that recenly their lenders have increased the interest rates on open balances 20 a whopping 24 %. Please be aware of what your lenders are doing and look to replace high interest rate debt with either a lower rat credit card or your home equity line of credit. Additionally, many lenders have been eliminating the unused portions of vredit lines, which is another reason why you might wish to use your credit line before it is reduced, thus preserving a lifeline of credit sources.