Debt Consolidation Services
Debt consolidation services offer loans…
Debt consolidation services offer loans that allow you to borrow to refinance or restructure to wipe out debt. Refinancing your mortgage or getting a home equity loan, equity loans, personal loans, etc., are all options you have to consolidate credit cards. You have to borrow money, and then make one monthly payment for getting rid of debt.
Consolidating Credit Cards With A Loan
Consolidating credit cards with a loan involves applying for the loan, being approved, and then revising your budget to remove the paid debts (including payment for new loans). It is important for your financial future, that you don’t incur any more debt while making consolidation loan payments. If you do, you could find yourself back in over your head, and on your way to bankruptcy.
Quick Tips For Debt Consolidation Loans
If you haven’t already done a Debt Worksheet, do it now. Review your Debt Worksheet so you know how much you need to borrow, and what interest rates you are currently paying.
- Do an Income Worksheet and Monthly Budget so you know how much of a payment you can afford.
- There should be NO FEE, or obligation, when you apply online for a consolidation loan, so you can shop around for the best rate, and payment terms, you can get.
- Allow yourself some leeway in your budget when calculating payments on consolidation loans. This will help you to pay it off faster and save interest.
Compare Secured & Unsecured Debt Consolidation Loans
If you own a home, vacation property, or other real estate that can be used as collateral, you may qualify for a first or second mortgage, home equity loan, or refinancing of an existing mortgage to consolidate your debt. Consider these plus and minuses for secured consolidation loans before choosing between a secured and unsecured loan.
- + Rates on secured loans are lower
- + Ability to borrow more money
- + Smaller monthly payments
- - Longer repayment terms
- - Risk of losing house if unable to maintain payments
Unsecured Consolidation Loans
If you don’t own real property, you may qualify for personal loans that can be used to consolidate debts. Here are the plus and minuses for unsecured loans should you qualify.
- + No risk of assets
- + Shorter payment terms
- - Higher monthly payments
- - Higher interest rates