Temporary Tax Credit Isn’t the Only Way to Save on Your Mortgage

The most popular - yet elusive - Christmas gift this year is too big to wrap. In recent months, potential homebuyers have been scrambling to take advantage of the temporary homebuyer tax credit of up to $8,000 before it expires on Nov. 30.

But you don't have to rush into buying a house before you're ready (if you'll recall, it was too much debt that got us into this mess - and a house is about the biggest, albeit most important, debt you can take on). Nor do you have to feel that you missed the boat if your financial situation won't allow you to plunk down a down payment right now. Here's why.

First, Congress is currently debating whether to extend the credit through March 2010, then phase it out slowly. Second, mortgage rates are at record lows and affordable homes are at record highs. Third - and maybe most important - there's another way to save big bucks on that down payment. And you don't have to wait for government approval to get it.

With most folks reliant on credit cards and loans, debt is a major drain on our paychecks. Not only are we making monthly payments, but sometimes the interest we're forking over is so great that it doesn't cover our principal balance - meaning our debt keeps growing and growing. But imagine if instead our debt was shrinking. Eventually, all the money we gave to creditors and lenders will now stay in our own bank account, to be spent as we so desire. It might sound like a dream, but it can be a reality with bankruptcy.

Bankruptcy can be one of the most effective ways to rescue your finances from debt, take steps towards better credit and save for necessities like a place to live. If you've already got your dream house, bankruptcy can even help you keep it. When you file for Chapter 13, for instance, a legal action called the automatic stay immediately stops foreclosure and repossession - whether you're about to miss your first payment or the bank has begun steps to take your house.

Want to learn more about bankruptcy? At DebtStoppers, we can assess your financial situation, answer your questions and find a plan that's right for you when you sign up for a free one-on-one debt analysis with one of our Atlanta bankruptcy attorneys.

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