Debt consolidating home equity finance
You not only get one of the best interest rates available, but you can also stretch out your payments for 15-20 years or even longer, allowing you to minimize monthly payments.A home equity loan is a type of second mortgage that is secured by the equity (ownership) you have in your home.First, you may be able to get a lower interest rate on your consolidation loan than you were paying on your various other debts.
2014)When monthly bills get out of hand, debtors frequently look to debt consolidation.
You can also seek to take out a personal, unsecured loan on your own or try to negotiate some sort of arrangement with your creditors. The simplest, and most straightforward way to consolidate your debts is to simply to take out a new loan from your bank or credit union and use that to pay off the various bills you may have.
You're then left with one monthly bill to pay rather than several.
Second, you may be able to set up a consolidation loan that lets you pay off your debt over a longer time than your current creditors will allow, so you can make smaller payments each month.
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.