Debt consolidation
- With a this type of loan, all your debts will be consolidated into
one simple monthly payment. Debt consolidation works to reduce your
interest rates along with eliminating late fees that happen 1 day
after the due date as with your credit card companies. Avoid taking
drastic steps such as bankruptcy without looking into Debt consolidation
programs first. Pay off your debt quicker and easier than you ever
thought possible with a debt consolidation loan.
When should you consider a refinance for debt consolidation?
1. If you are only able to pay the min balance on credit card debt
each month.
2. If you have credit cards with high interest rates.
3. If your credit cards are maxed out.
4. High interest auto or recreational vehicle loans
5. High interest personal loans or college loans
Not only can a refinance save you money each month, but for many
people debt consolidation refinance:
Is a second chance to get their finances under control.
Provide an opportunity to learn how to better manage thier credit
in the future.
Very often can improve your credit score, which in turn could save
you more money by giving you access to better insurance rates.
Why would you want to pay 18-24% interest on credit cards when
rates are 1/3 to 1/4 of that for your home. It just doesn't add
up and make sense to continue to pay those high rates when you have
the option of lowering those rates. This can save you thousands
of dollars not to mention you will only have to write one check
instead of multiple checks every month.
In most cases you can deduct the interest paid on your mortgage
on your federal taxes. You cannot deduct interest paid on credit
card, vehicle or personal loans on your federal taxes.
Debt consolidation should not be seen as an open door to apply
for more credit. It should be seen as a tool that will help you
get your finances under control, once and for all.
