What is Debt Consolidation?
Debt consolidation combines several loans or debts — usually credit card debt — into one low payment. This can lead to lower interest rates and lower monthly payments.
A debt consolidation loan can cut those numerous high-interest debts down to size into one low-interest loan. How do you qualify for a debt consolidation loan? Do you have to own a home? We’ll clear this up for you.
Did you know?
Managing your debt is not as difficult as you may think. A lifestyle change may be in order, but don’t sweat it. The long-term payoff is worth it. Don’t wait any longer. Start reducing your debt today.
Manage Your Debt
Managing your debt is not as difficult as you may think. A lifestyle change may be in order, but don’t sweat it. The long-term payoff is worth it.
It takes getting used to, but as you move closer to life without debt, you’ll settle in and be able to move forward with your life.
Try Our Debt Consolidation Calculator
Should you consolidate your debt? Use this calculator and find a plan that fits your needs.
Combine Your Debt and Save
Combining several high-interest loans into one low, manageable payment can free up your cash. With the extra money you’ll have, feel free to pay more against the principal (and pay off debts earlier), or use the extra cash wisely in other areas where needed.
Start reducing your debt today. The more you wait, the more cash you stand to lose. You have plenty of options. Are you a homeowner? Let’s start there.
First off, congratulations on owning a home. Now, let’s start reducing your debt and getting rid of those high interest rates.
As a homeowner, there are several different options available to you. Let’s explore the strengths of each one, and match a debt consolidation loan to your individual needs.
1. Consider a Home Refinance or Home Equity loan if you own a home and you’ve built-up a lot of equity.
2. If you don’t own a home or if you’re still working on building equity, consider a personal loan or a low interest rate credit card.
3. If your credit score is low and you’d like help with your debt, a Debt Management Program could be right for you.
Built up a lot of equity? What about your mortgage interest rate? Is it near or higher than today’s cash-out refinance rates? If so, you’ll want to consider a Cash-Out Refinance:
- Allows you to finance the loan at a lower interest rate than a home equity loan
- Use funds for debt consolidation, home remodeling, college tuition, etc.
- Provides additional funds you need to consolidate your other higher-interest debts
Home Equity Loans
A home equity loan, also known as a second mortgage, allows homeowners to borrow money from their home’s available equity.
Home equity loans are commonly used for debt consolidation. They’re a popular financing option for homeowners who need additional cash. These loans usually offer a lower interest rate than credit cards. Plus, the interest you pay may be tax deductible (consult a tax advisor).
The time to buy is now, but you can still reduce your debt if you don’t currently own a home. Here are your options:
A personal loan could help you consolidate your debt into one low monthly payment and save.
If you have good credit, consider transferring your total debt to a low interest rate card.
Debt Management Programs combine multiple unsecured debts into a single monthly payment that is often much lower than what you’re paying now.
* Please consult with your attorney, financial consultant/planner, accountant, and/or tax advisor for advice concerning your particular circumstances. The information contained herein is for general informational and educational purposes only and should not be construed as professional, tax, financial or legal advice or a legal opinion on specific facts or circumstances. The information or opinions contained herein should not be construed by any consumer and/or prospective client as an offer to sell or the solicitation of an offer to buy any particular product or service.