Debt Consolidation
Paying with high interest on credit card and loans can be overwhelming and put strain on your personal and financial life. Debt Consolidation is a simple solution to use the equity in your house to consolidate these debts in one simple payment to make.
Usually, the interest rate is the lowest on mortgages. This also results in improved monthly cash flow.
HIGHLIGHTS:
- Lower interest rate on debt
- Lower payments
- All debts consolidated into single payment
- Low monthly payments
What is Debt Consolidation?
Debt consolidation takes your multiple debts, and combines them into one monthly payment. By doing this, you can pay off your debt in a few years. Keep in mind you still can’t miss a payment after consolidating.
Consolidating your debt will lower interest rates, allowing you can save money on interest and reduce your payments each month. Using consolidation helps you pay down debt faster. You can use money from the loan to pay off the debt, then pay back the loan in lower payments.
The Following Debts can be Consolidated
Here are an example of loans, there are still more debts that could be listed.
- Collection Debts
- Payday Loans
- Unsecured loans
- Medical
- Credit Cards
- Utilities
- High interest loans
What is Debt Consolidation?
Only have a single, lower payment: consolidation takes your list of debts and puts them all into a single, lower payment. One payment is easy to remember, and pay. Debts get paid off quickly: Within three to five years, your debt will be paid off.
Low interest rates: Low interest rate will allow you to make bigger payments since you will be saving money.
When Is It a Good to Consolidate Debt?
- You have a plan set up to guide you and prevent you from getting into debt again.
- You have a consistent cash flow, allowing you to cover the loan payments.
- You have a credit score good enough to get a low-interest debt consolidation loan.
- Your total debt, does not exceed 40% of your gross income, not including the mortgage.