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Not only do the high interest rates and fees make it nearly impossible to pay the debt off but not making payments on time can seriously damage your credit.

So what options do you have to pay off your debt and save your credit? You can get a mortgage loan in most cases for those with bad credit profiles. The good news is that there is a large and ever-growing number of bad credit mortgage loans available.

Finding a mortgage loan for bad credit borrowers is an easier job for a broker who has had considerable experience in working with many lenders and borrowers. Today, utilizing an experienced broker is almost a must.

First of all, interest rates on home mortgage loans are considerable lower than credit card interest rates. In fact, interest rates may up to 10% lower and that relates to a lot of money. The reason interest rates are lower on home mortgage loans is because these types of loans are guaranteed by real estate.

As a result high interest rates are not charged because there is already a guarantee in place for the loan. This means that when you choose to pay your credit card debt off with your home mortgage loan you will save hundreds or even thousands of dollars in interest payments.

Forty-year mortgage loans are not new, they have been tried, even promoted in years past and some lenders have continued to write them in special circumstances. When test marketing began a few months ago a number of mortgage pundits soundly denounced them because of the greater interest costs over the life of the loan.

Conversely, however, the much lower monthly payment may make the 40-year a good choice for homeowners who have a limited time-frame in which they will own the home or keep the loan. Regardless, with Fannie opening its part of the secondary market to them, look for mortgage companies, banks, and brokers to start strongly marketing various 40-year loan products to consumers.

According to Anglo-American property law, a mortgage occurs when an owner (usually of a fee simple interest in realty) pledges his interest as security or collateral for a loan. Therefore, a mortgage is an encumbrance on property just as an easement would be, but because most mortgages occur as a condition for new loan money, the word mortgage has become the generic term for a loan secured by such real property.

Secure a Mortgage Loan for Bad Credit

A person with bad credit can work with a credit counsellor to find lenders that deal specifically in these types of loans. Bad credit lenders can be reached without a go between, but a person stands a better chance of finding affordable rates if he goes through a professional service. A counsellor can also suggest methods that might bring a person's credit score up at least a few points in a short amount of time. If someone's credit is so bad that no bank or mortgage service will deal with him, his only option might be a sub prime lender.