Consolidate Debt With A Home Equity Loan
If you are a home owner who is having to borrow from Peter to pay Paul every
month due to a mounting debt load, a debt consolidation home equity loan
may be the answer. A debt consolidation loan will allow you to consolidate
your high interest credit card and consumer loan debt into one low rate,
affordable monthly payment.
A debt consolidation home equity loan is a secured loan. It is important
for you to know that your home will be used as collateral which means the
lender will have a lien on your home until the loan is paid off in full.
None the less, if you are drowning in a sea of debt, a debt consolidation
loan can give you a new financial start. It can help you avoid bankruptcy
as well as end harassing creditor phone calls. In addition, in most cases,
your monthly payment will be significantly lower freeing up cash that can
be used for a retirement savings plan, to fund a college education or to
just save for a rainy day.
It is important that once you obtain your debt consolidation loan you refrain
from running the tab on the recently paid off credit cards back up.
If you
do not think you will be able to resist the temptation then you may want
to consider cutting up your credit cards and closing out the accounts. If
not, you can quickly find yourself in a situation that is worse than before
you consolidated your debt!
Another benefit of a home equity debt-consolidation loan is that the interest
you pay on the loan may be tax deductible. You should consult your tax advisor
regarding your particular situation but in most cases as long as the combined
1st mortgage and new debt consolidation loan do not exceed 100% of the value
of your home the interest will be fully deductible.
Most lending institutions these days offer home equity loans that can be
used to consolidate debt so you should not have a problem finding a lender
to facilitate your loan needs. You will also find that there is an abundance
of information on the internet about debt consolidation home equity loans.
Two very informative sites that you can visit for more information on the
various type of home equity loan debt consolidation loan programs available
and the lenders who offer them are Equity
Loan Source and Bad Credit
Loan Shop. Also Military VA Loan.
Article Source: http://add-articles.com
Levetta Rivera is a successful mortgage broker and financial consultant. For more in depth information on various mortgage loan programs available including loan products for people with bad credit.
