Have a lot of payments that you are finding hard to handle? Is every month a constant battle to which bills you’ll be paying?
Now more than ever might be the perfect time to consolidate your debt. Refinancing your mortgage is one option with a debt consolidation loan.
Am I really paying off my debt?
Technically you are not paying anything off right away, but instead you are moving the debt that you have with one lender. This way you won’t have a ton of different payments, interest rates, and due dates. Instead, you will have one payment.
Why is consolidation a good option?
It’s sad but true that most of America is in debt, and a lot of it. People have all kinds of different payments (e.g. car payments, credit cards, home equity accounts). The interest rates can be different on all of these, and usually with debt, such as credit cards, the interest rates are rather high. Though the market is constantly changing, combining your debt to one payment and one lower rate can save you money, and give you peace of mind.
Could this have any bad repercussions?
As with everything, there is always a bad side, but there are ways to make sure that you don’t get stuck in a situation that isn’t favorable. Make sure that the rate you are getting will be lower than the current rates that you are paying. Make sure that you can handle the payment under the new loan amount. Your loan officer will be able to tell you what the new payment will be and the life of your loan. Also keep in mind that when you consolidate your debt, you are extending all of the debt that you have over the life of your loan (e.g. 15 years, 20 years, 30 years). For further verification, make sure that the new payment you will be making is less than the sum of your current bills. Since your debt will be spread out, remember to factor in the extra interest that you will be paying over the years of your loan. Though one payment and one lender might have its advantages, paying more in the long run usually isn’t a smart decision.
Well, you are not alone and this is where our educated staff comes in handy. Any questions you have, our loan officers will be able to take the information that you give them, and give you an informed answer to what is best for YOU!!! Call us today at 404-475-6270.