This not only simplifies the payments, but can also provide real debt relief by reducing those payments as well.A consolidation loan can reduce your monthly debt payments in two ways."The theory of turning higher debt rates (credit cards) into lower ones (mortgage) is a great idea," says White in an e-mail, "but it usually doesn't work because many of the people who end up in this situation have a habit of spending without conscious decision making." Gayle and Jim Mc Weeney are determined to break that habit.
That's particularly helpful if you can combine it with a lower interest rate as well. Basically, you borrow a single, lump sum of cash that's used to pay off all your other debts.
A debt consolidation loan can cut those numerous high-interest debts down to size into one low-interest loan. Home equity loans are commonly used for debt consolidation.
Managing your debt is not as difficult as you may think. As a homeowner, there are several different options available to you. Is it near or higher than today’s cash-out refinance rates?
The time to buy is now, but you can still reduce your debt if you don’t currently own a home.
Here are your options: A personal loan could help you consolidate your debt into one low monthly payment and save.