Mortgage Debt

What is a Mortgage?
A mortgage is a loan on your home, or on a property. It is usually the biggest debt most people will have. According to Webster’s Dictionary, a mortgage is; “the pledging of property to a creditor as security for the payment of a debt”.

It is a legal contract that says if you don’t pay the loan back to the lender, along with fees and other costs involved in the mortgage, the lender can take your house. The lender holds title to your house until the debt has been completely paid off. The lender is quite happy because they have the right to sell your house in order to get their loan back. Because the loan debt is so large, some people look at strategies available for reducing the term of their loan through the use of mortgage reduction.

Mortgage reduction is really a revolving credit loan, or overdraft, which takes advantage of the borrower’s income from all sources going into that account (thus reducing the interest charged each day) and then making payments from that account for all necessary expenditure, while using the credit card to obtain the benefit of the interest free...

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