In today's reality each and everyone of us is bombarded with junk mail. Much of it is from lower tier mortgage companies presenting second mortgages and refinancing as a monetary cure-all. Instead of a quick fix they often increase your total debt load due to fees and closing costs and shift significant amounts of debt from unsecured debt to secured debt.

This unsecured debt, which may have been able to be written off entirely, is now tied to (secured by) your home and can not simply be written off without the loss of the securing asset. This shift in debt greatly increases the difficulty of retaining your home in the event of continuing hardship or even bankruptcy.

We are not saying refinancing your mortgage or consolidating debt is always a bad move. When done from a position of strength and as part of a sound financial plan it can be a good financial tool.

However, refinancing or consolidating debt should never be done out of desperation. If you feel refinancing is your last option before bankruptcy, wait. Talk to us, another attorney, or review the information on credit counseling on the next page. Rushing into this can make things go from bad to worse.

Always consult an attorney before refinancing or consolidating debt.