There you are in your bed, tossing and turning, fretting about how you are going to pay your bills.
Giving up on sleeping, you switch on the TV to try and take your mind off your money problems.
Its times like this it feels like there is no way out of your financial woes.
Many of us have been there before.
But it doesn't have to be like this.
Hopefully, this article will be a lifeline to struggling homeowners who need relief.
For those home owners who have built up some equity in their home, a second mortgage might be the solution.
Second mortgages are a widely used product and as the name suggests are a secondary loan borrowed against your home.
There are three primary considerations you should be aware of when investigating taking out a second mortgage.
First of all, you should be aware of how much money you are likely to receive.
This is purely a function of how much equity you have in your home, or what the difference between what your home can currently be sold for and what amount you currently owe on the home in the form of your primary mortgage.
The second thing to look out for is how much you will have to pay and what kind of paperwork you will have to endure to secure the second mortgage.
In many cases, the paperwork is much simpler for the second mortgage, since you have already qualified for the first.
With respect to the interest rate on the loan, you should expect to pay a higher rate of interest on the second mortgage than on the first.
You should also look into whether you will need insurance on the loan if you are borrowing heavily against the value of your home.
The final thing to consider is the cost of taking out the loan compared to the benefits.
The costs have been covered, but the benefits include being able to use the loan funds to pay off more expensive debt.
You could actually reduce your total monthly loan payment amount if you pay off expensive debt with cheaper funds.
However, it is important to invest some time into developing good cash flow management skills to avoid perpetually having to roll your debt from one place to another and never really getting anywhere.
If you need help with managing your finances you should have a look on the internet for courses designed to teach you money management skills.
There is no question that getting a second mortgage can alleviate much of your financial stress.
Be sure to use the funds properly if you go down this path.
Make sure you understand all the implications of taking out a loan against your home and familiarize yourself with the application process.
If you do these things, your anxiety will be gone, the quality of your sleep will be greatly improved, and you will be able to get more enjoyment out of your life.