Out of debt in the New Year...

Christmas brings with it good times with the family, reflections on the year that has passed and unfortunately a lot of credit card debt. All those gifts you bought came with a price, and you end up having to pay it off in the months that follow. I suppose that is your unwanted Christmas gift to yourself.

Many people will jump on the yellow brick road and try to pay off those bills over time (a nearly impossible task indeed) Many will fall behind and damage their credit in the process. Few will take the time to really sit down and determine what makes the most sense for them--consolidate their debt into one manageable payment.

A mortgage refinance in the New Year makes a lot of sense. Mortgage rates are still at historic lows with people (even those with fair credit) qualifying for 30 year fixed rates in the low 6's. Credit card rates are typically much higher, and this is a great way to save on unnecessary interest charges. Also, if you close a loan in January of 2008, your first mortgage payment will be due March 1. This means you will have some relief in payment for awhile.

Starting the New Year with a list of resolutions for a better you is important. Perhaps a new mortgage should be on yours?