Quick Credit Fixes Can Be Risky

In this case, especially with the recent market volatility and the recent turmoil in the credit markets, even just a couple of reports of above-the-norm defaults could spook investors, and might freeze up credit to the wider consumer borrower category. A look at the recent share price charts of financial giants Merrill Lynch(MER Quote), Citigroup(C Quote) and Bear Stearns(BSC Quote) shows how badly the credit crunch has affected banks already.

Consumers who take up these offers do so at their own peril. But, with the prospect of many people losing their homes, it's unlikely these practices will go away anytime soon.