Reverse mortgages are a growing trend among seniors in America today, and the number of reverse mortgages taken out increases each year. A reverse mortgage may allow a senior homeowner to make use of the equity in their home for living expenses and other needs.

Commercials and online offers abound for home equity loans, consolidation loans and zero percent balance transfers on credit cards. Consumer debt grows annually, and these quick fix solutions seem like an easy way to reduce monthly bills and make day to day life easier. Unfortunately, these options do little to reduce your debt, and may place you in an even more vulnerable financial situation.

Many banks are now offering customers an alternative loan repayment option, often advertised as featuring payments lower than expected for a loan of that amount. In an interest only mortgage, the buyer has the option of making payments consisting of only the interest on the loan, with no amount going toward the principal on the loan for a number of years.