Buried in Debt

If you have a lot of debt and you’re considering applying for a second mortgage or home equity loan to pay it off, stop! Although you may have read articles indicating that using a mortgage or equity loan to pay off your debt is a “smart” option, in fact, taking out yet another loan can count against you where your credit is concerned, and the fees that go along with acquiring a new mortgage can be excessive.

Most articles and so-called financial gurus who advise that approach do so because they claim consumers can get lower-interest loans to pay off their higher-interest unsecured debt. But, there are a couple of pretty major flaws with that idea.

First, by taking on additional debt on your home, you make it a lot more difficult to qualify for other loans in the future and reduce any profit you might make from the sale of your home; as a result, you can actually lose options using this route.

Second, depending upon the credit you have now, the mortgage or equity loan rate you qualify for may not be that different from some of the interest rates on your unsecured loans. In fact, if you have a lot of debt, the chances of being able to qualify for a really good rate are vastly lower than if you have no, or very little, debt. So, what is the best approach? For most consumers, the answer is straightforward – debt consolidation.

Debt consolidation programs are designed specifically to help you pay off your debt faster and at a lower interest rate without having to take on any additional debt burden. Using certified and trained counselors, debt consolidation at this website works with your creditors on your behalf to reduce your interest rates and roll all of your debt into one single monthly payment to make it easy to stay on track with your debt repayment plan.

Unlike a home lender that works with you for as long as it takes to “make the deal” and then leaves you on your own, a debt consolidation program also offers the tools, guidance and support you need to become educated and to make smart financial management decisions throughout your entire life, helping you to stay out of debt and to work toward healthier long-term financial goals.

Be careful: Don’t confuse a debt consolidation program – which works towards reducing your interest rate and rolling your debt into one simple monthly payment – with a debt consolidation loan. Like second mortgages and home equity loans, debt consolidation loans can also put your credit at risk by forcing you to assume another loan that shows up on your credit history as an additional obligation.

In addition to slashing your interest rates – sometimes by as much as 50 percent – and significantly reducing the amount of time it takes to pay back your debt, debt consolidation programs also help consumers learn healthy spending habits through regular and affordable monthly payments.

What’s more, debt consolidation programs aren’t just for those who’ve missed payments; anyone can enroll. If you’re looking for a simple way to get out of debt while preserving your credit and learning good money management habits, debt consolidation is the made-to-order solution that’s ideal for you.

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