Debt consolidation is a wise choice for people looking to reduce or
eliminate their debt. Because of high interest rates, reducing debt is
almost impossible. Getting a higher paying job may help. However, there is
an easier solution for eliminating debt. Debt consolidation lumps all
your debts into one loan. Helping you pay off debts quicker.
Debt Consolidation Loans Equals Lower Interest Rate
Banks and financial institutions that offer personal debt consolidation
loans offer great rates for people with good credit. The average credit
card interest rate ranges from 14% to 25% - sometimes higher. Because
debt consolidation loans have a much lower rate, you will receive huge
savings. For example, instead of paying $300 a month for credit cards,
your consolidated loan may be $200 a month.
Debt consolidation loans must be secured by a piece of property. This
could include a car, boat, or home. Home equity loans are ideal for
those looking to consolidate their credit card and consumer debts into one
payment. In addition to debt consolidation, home equity loans are
perfect for home improvements, paying for college, or taking a dream
Using Home Equity Loans to Consolidate Credit Card Debt
Home equity loans are based on your home's equity. If you owe $100,000
on a $175,000 mortgage loan, your home's equity is $75,000. Thus, you
may obtain a home equity loan for up to $75,000. Use this money to
consolidate debt. However, weigh the pros and cons before obtaining a loan.
Because the home equity loan is secured by your home, if you refuse to
pay the loan, the lender may foreclose your property.
Applying for Debt Consolidation Loans Online
Completing a debt consolidation loan application is simple. For
convenience, consider submitting an online application. Various lenders offer
loans. Furthermore, there are lenders that offer loans to individuals
with poor credit. In order to get the best rate on your debt
consolidation loan, compare rates from different lenders.
Contact your current mortgage company. If you have good credit, the
lender may be eager to give you a loan. Getting a quote request from a
loan broker is also beneficial. These individuals do all the legwork for
you. After a loan broker receives your online application, within
minutes they will email you a list of multiple offers. Compare and contrast
the rates and terms, and then choose the most attractive loan package.
Here are our
Recommended Debt Consolidation Companies Online.
Carrie Reeder is the owner of ABC Loan
Guide, an informational website about various types of loans.