Consolidating your debts into one easy to manage loan helps you save
money while paying off your debt. With a low interest loan, it is
possible to cut your repayment schedule by years, just by paying the same
amount you are now. There are several lending options when consolidating
debt. So whether or not you own property, you can trade in your high
interest accounts for a low rate loan.
Using Your Homes Equity For Collateral
For the best rates, tap into your homes equity. You have several
options for using your equity. One choice is to refinance your entire
mortgage and cash out a portion of your equity as well. This will save you
money on application fees if you have already been thinking about
refinance your mortgage. You will also get lower rates on your cash out.
The other choice is to apply for a second mortgage or line of credit.
Both of these allow you to keep your original low rate mortgage while
accessing your equity. Application and miscellaneous fees are relatively
small. And rates are near conventional levels.
Getting Help With A Personal Loan
For those without property to act as collateral, you can choose a
personal loan to reduce your rates. Even with a personal loan, you can cut
your credit card rates nearly in half.
Personal loans are based on your credit history and income. The better
your credit score, the better rates you can get. With a large income or
assets, you can also qualify for good rates. But even with poor credit,
you can still lower your rates with a personal loan.
Try using one of ABC Loan Guide's
Recommended Debt Consolidation Companies.
Opening Up A New Credit Card Account
If you only have a few thousand to consolidate, then consider opening a
new credit card account that has a 0% on transfers or a low rate. With
these introductory offers, you can begin to trim your principal.
Its important though that you close old accounts so that you dont
further hurt your credit score. Too many open accounts, even unused, will
reduce the future amount of credit you can qualify for. It also keeps
you from adding to your debt load.
No matter which option you choose to consolidate your bills, take some
time to investigate lenders. Make sure that you are getting the best
deal available, saving you more money.
View our recommended lenders for a
Home Equity Loan to consolidate debt. Also, view our recommended sources for a Low APR Credit Card.