1Top 10 credit card issuers have raised their minimum payment requirements in 2006.

2.Home Equity Lines of Credit (HELOC) that were at 4.25% less than 2 years ago are now as high as 9.5%.

3.You had a very Happy Holiday on credit.

Talk about being in hot soup! The $10,000 in credit card debt that used to cost you $200/month could now cost you $400/month. Granted, the higher minimum payments means it won’t take 58 years to pay off your living room furniture, but the extra $200 each month has to come from somewhere. Maybe you paid off a load of debt with a Home Equity Line of Credit for the tax advantages and to lower your monthly payments. Chances are your HELOC is tied into the Prime Rate, which has gone up 75% since June 2004. That means that even if you are making interest-only payments, your manageable $200 payment on your $60,000 HELOC may now be $375, or much worse if your margin also went up after the first year. Here’s the surprisingly good news. Long-term mortgage rates haven’t changed much at all in the last 2 years! In fact, now you can even extend your term to 40 years. Combine that with interest-only options on fixed rates or deferred interest arms based on a 1% start rate and you can… Send that credit crunch soup back to the kitchen! Consider consolidating all your debts with a new first mortgage or fixed rate second mortgage. Don’t let your situation deteriorate to the point where your credit scores are affected or your options will be limited and unattractive. Meet with a mortgage professional NOW before you miss your last chance to lock in long-term payment that fits your budget comfortably. If you would like to enjoy the confidence of knowing that one of the most qualified mortgage specialists in the business is working on your behalf please call David Shelley at 803.665.1266 in Columbia and make an appointment for a FREE consultation