Debt Consolidation Loans
A Special Loan To Consolidate Your Debts!
Reduces Monthly Payments and Interest
But Debt Consolidation Has Risks!
There are several ways to consolidate debt. Enrollment in a debt management program is one way. However, consumers who have home equity or some other valuable assets, and who are in need of some debt relief, may wish to consider getting a Debt Consolidation Loan. Sufficient equity, however, is required to obtain a debt consolidation loan, and if you default on the loan, sadly, you could lose your home or the assets that were used to secure the loan.
If you do not have sufficient home equity, or some other form of equity, it may be impossible to get a debt consolidation loan. If this is the case, for those consumers who are deep in debt, enrollment in a Debt Management Program or Debt Settlement Plan may be their only viable options. Doing so will likely provide credit card debt relief, while providing a means to become debt free over time.
On the other hand, people in debt who do have sufficient home equity, or some other form of equity, may be able to simplify their finances, reduce their monthly outgoings and reduce the interest rate they're paying on their debt with a Debt Consolidation Loan.
It's a simple idea. A new loan that is large enough to pay off the borrower's debts in one lump sum. This results in one monthly payment that hopefully is much simpler and less stressful.
Having only one monthly payment to make can help the borrower avoid making late payments — or forgetting to make them at all. In other words, it can help protect them against late payment fees and damage to their credit rating. In the long run, this can prove to be a real benefit, as a healthier credit rating is likely to reduce the cost and complexity of accessing credit in the future.
Debt consolidation loans can come with much lower interest rates than other forms of credit, especially credit cards and store cards. That means the debt will grow at a slower rate.
Also, consolidating debts gives the borrower a chance to take a really good look at their finances and figure out how much they can realistically afford to repay every month. After all, many people suddenly realize that they're facing substantial debt that they'd barely noticed they were acquiring. They've borrowed a bit here and a bit there, until they realize their debts are much bigger than they expected — and so are their monthly repayments.
It must be recognized, however, that there are risks to acquiring a debt consolidation loan. We recommend that you explore our site and read the many articles available to you prior to signing on the dotted line. Getting a debt consolidation loan is a major decision and it must never be taken lightly. Explore all of your options!
To learn more we highly suggest that you call 1800 DEBT.COM (that's 1800-332-8266) for a FREE Debt Consultation. There is no obligations and a certified debt counselor can help you determine what is the best option for your particular needs.
Debt Consolidation Featured Articles:
If you are a homeowner who needs money to pay bills or for home repairs, you may think a home equity loan is the answer. But not all loans and lenders are the same. Click to read more ...
Using a credit line to borrow against the equity in your home has become a popular source of consumer credit. Lenders are offering home equity credit lines in various ways. Click to read more ...
Should you refinance your home mortgage? That's a question many homeowners are asking, given the lower mortgage rates that are currently available. Click to read more ...
The Above 3 Page Article Includes The Following Sections:
Introduction: Debt Consolidation Loans
Home Equity Loans and Second Mortgages
Debt Consolidation Through Consumer Credit Counseling
How Debt Consolidation Through Credit Counseling Works.
Debt Consolidation and Financial Articles:
Need a Loan? Think Twice About Using Your Home as Collateral
Business Debt Restructuring and Debt-for-Equity Swaps
Debt Consolidation Options
Looking For The Best Mortgage
Shopping For a Mortgage?
Watch Out For Competing Offers
Deceptive Mortgage Ads:
What They Say; What They Leave Out
Shopping For A
Home Equity Loan?
What You Should Know About Home Equity Credit Lines
Home Loans: How to Keep Costs from Going Through the Roof
Tips for Protecting Your Home From Foreclosure
Foreclosure Prevention Frequently Asked Questions
Mortgage Payments Out of Control? Here's What to Do
Refinance or Modify
Home Equity Scams:
Understanding the Process
Lines of Credit vs Traditional Second Mortgage Loans
Frequently Asked Questions
About Second Mortgages
Questions to Ask When Choosing a Credit Counselor
Knee Deep in Debt? Self-Help Guide
Default: Failing To Meet Your Legal Obligations
If Your Credit Counseling Agency Goes Out of Business
Practical Advice On How To Save and Manage Money
Do-It-Yourself Debt Settlement & Debt Settlement Kit
FAQ Relating To Debt Cancellation and Foreclosure
Charge-Offs: How it Relates to Consumers and Credit Report
Out of Work? How To Deal With Creditors
Insolvency: What It Means To Be Insolvent
Ways to Cope Financially During and After a Big Change
Helping Your Money Last... After Your Last Paycheck
Your Alternatives When Faced With Financial Hardship
Understanding Your Rights To Fair Lending