Mortgage Calculator

Be careful when responding to advertisements about bill consolidation. If they are about home mortgages, refinancing or equity lines of credit, that's one thing. But they actually may be about bankruptcy. Don't get involved with bankruptcy unless you understand what it means and have evaluated all your other options.

The Federal Trade Commission (FTC) cautions consumers to read between the lines when faced with ads in newspapers, magazines or even telephone directories that say:

“Consolidate your bills into one monthly payment without borrowing.�

“STOP credit harassment, foreclosures, repossessions, tax levies and garnishments,�

“Keep Your Property.�

“Wipe out your debts! Consolidate your bills! How? By using the protection and assistance provided by federal law. For once, let the law work for you!�

You’ll find out later that such phrases often involve bankruptcy proceedings, which can hurt your credit and cost you attorneys’ fees.

If you’re having trouble paying your bills, consider these possibilities before considering filing for bankruptcy:

* Talk with your creditors. They may be willing to work out a modified payment plan.
* Contact a credit counseling service. These organizations work with you and your creditors to develop debt repayment plans. Such plans require you to deposit money each month with the counseling service. The service then pays your creditors. Some nonprofit organizations charge little or nothing for their services.
* Carefully consider a second mortgage or home equity line of credit. While these loans may allow you to consolidate your debt, they also require your home as collateral.