It's a very bad idea to get a mortgage loan that lets you pay off your debts and then spend more than you should, which will put you in more debt. Some people might benefit from this type of mortgage, but more often than not, it will make people spend more money than they really have.
Since there are so many ways to get credit these days, it's not surprising that people spend a lot more than they make. People everywhere on college campuses tell students how great it is to spend money on credit cards and try to get them to sign up for more credit than they need. Many people are too young to really know how to use credit cards well and shouldn't even have them. If you get an interest-only mortgage, you'll probably buy a house you can't really afford and pay off credit card debt for things you couldn't afford from the start. This kind of thinking is not at all progressive. Instead, it hurts people's finances and doesn't help them make good decisions for the future.
If you only pay the interest on your mortgage, you are just replacing debt that you can't write off. As long as people keep paying on this debt, it will keep hurting them. If you already have credit card debt, it's not a good idea to keep spending and spending. These companies don't want you to stop spending because if you do, they won't make any money. For credit card companies to make money, you have to keep spending. Every time you buy something you don't need with money you don't have, you help keep yourself in debt. Getting out of debt can be hard, but it's something you and your family should do. You don't want to keep getting into debt and ruining your credit.
Each person needs to be in charge of how they spend their money. Who will take care of your personal finances if you don't? Some companies will tell people with bad credit that they can get an interest-only mortgage from them to pay off their credit card debt. These companies take advantage of the fact that you can't take care of your own money.
When people really know what the terms and conditions of an interest-only mortgage are, they are much less likely to choose this type of loan. The lender is taking a big risk by investing in this, so they will try to get as much money as they can from the customer. If you choose this kind of mortgage loan, you may end up spending a lot more on your home than you ever thought you would. Before you buy a home, try to get your credit in order. The first step to getting your life in order is to learn how to spend your money better.
