What to look for when consolidating debt

27-Jan-2017 20:14

In addition to putting your home at risk, many consumers end up prolonging their debt.

While having one low rate and one payment is an attractive option, many people end up in similar or worse financial situations when attempting credit card debt consolidation.

Debt Consolidation: Consolidation is the process of combining all your debts into a single, lower payment by taking out a loan to pay off your creditors.

When you take out a consolidation loan, you are required to put forth collateral.

Most often, the required collateral is a second mortgage or a home equity line of credit.

During this program, you receive financial counseling and meet with a financial advisor.

Additionally, the debt management company contacts your creditors and attempts to negotiate lower interest rates on your behalf.

Debt Consolidation: Consolidation is the process of combining all your debts into a single, lower payment by taking out a loan to pay off your creditors.

When you take out a consolidation loan, you are required to put forth collateral.

Most often, the required collateral is a second mortgage or a home equity line of credit.

During this program, you receive financial counseling and meet with a financial advisor.

Additionally, the debt management company contacts your creditors and attempts to negotiate lower interest rates on your behalf.

Lower interest rates allow you to more quickly pay off your debts.