Consolidate Debt Into A Single Payment
Are you drowning in debt? Do you feel you are paying too much in
credit card bills and struggling to pay the minimum amount on
your credit cards? In such cases, debt consolidation loan might
be a viable alternative.
A debt consolidation loan is a loan you can take against your
home. Some banks will allow you up to 125% of your house value
and this money can be used to consolidate debt. The interest on
your debt consolidation loan will be far less than interest on
your credit cards or personal loans.
The money from debt consolidation loan can be used to pay off
your credit cards, store cards and personal loans. This will
significantly reduce your monthly repayment as well as your
interest.
However, a debt consolidation loan is considered to be a secured
loan. If you are unable to make payments, your bank has the
right to resell your home to another customer and force you to
move out. Debt consolidation loans are to be considered when you
are certain about the repayment of the loan. Some folks will
rack up much more debt when debt consolidation loans are
available and this downward spiral will never end. Adopt caution
and make it a point to repay all your debt rather than land into
a downward spiral of debt.
Many experts recommend discussing your debt consolidation loan
plan with your credit counselor who can provide you with
appropriate guidance on your particular situation. A credit
counsellor is a debt consolidation loan expert who receives
adequate training on the subject of debt. They are better
capable of making sound judgements for you, the customer. Most
credit counselling agencies are accredited given you added
confidence in working with them to reduce your debt. However, be
aware that there are many shady companies in this business so
proceed with caution and ask a lot of questions when you seek
services.