CONSOLIDATE DEBT NOW BLOG

Archive for the ‘debt consolidation’ Category

For some reason the average consumer seems to get nervous at the idea of debt consolidation.  Over time I have come to learn that it is primarily because people don’t understand how debt consolidation works.

Debt Consolidation is actually a very simple and effective way of reducing high interest credit card debt and reducing it to one low rate payment.  For example if you have 3 credit cards totaling $20,000.00 with an average interest rate of 19% and you lump them all into one loan with an average rate of 5% you would effectively be reducing your monthly payments by as much as $350 per month and saving a considerable sum of interest every month.

There are two ways of going about a debt consolidation.  The first option is to apply for an unsecured personal loan; essentially this just means you will not be using any collateral to secure the loan.  The second option is to apply for a secured loan, which generally involves using the equity in your home to secure a loan.  Having been on both sides of the lending fence the second option always seems to be the better route.
Using your homes equity has many advantages.  For one, you can often leverage a larger amount than if you were trying to get a personal loan because the lender has good security.  Secondly, because the lender has the security of your home, they will lend consumers money at a substantially lower rate than if it was an unsecured loan.  Lastly, you can amortize the payments over a much longer period on a secured loan which will allow you to keep your payments drastically lower.

If you are interested in finding out the benefits of how you can use the equity in your home to obtain a debt consolidation loan call us and speak to one of our agents.  Call toll-free 1-866-668-6570 for a no obligation quote and find out how you can eliminate your debt and drastically reduce your monthly obligations.