Would it not be the most relaxing start to your new year to begin with a manageable balance sheet? Post-holidays, the merriment and cheer often give way to anxiety at the prospect of larger than average credit card bills. Couple those credit payments with mortgages, car payments, and other miscellaneous loans, and January can be wrought with stress. Thankfully, though, there is a ray of hope amid the massive stack of notices and statements littering your desk. Debt consolidation, when done correctly, can save you hundreds of dollars a month.
There are a variety of options for debt consolidation. As you shop for a new loan, be aware that there are several types that bill themselves as perfect for debt consolidation. The most prevalent is refinancing your existing mortgage. If you are a homeowner with only one mortgage on your house, this could be the best money-saving loan. After all, the interest you pay on your mortgage is tax deductible, so there is some benefit to using your home equity to pay off those other high interest unsecured loans.
Another option is to take a second mortgage on the house. The interest rates for this kind of loan are generally a few percentage points higher than on a second mortgage, but it is still likwly tax deductible, and may even be lower than some of your credit card interest rates. Debt consolidation in this form means you will have two mortages on your home, but those will be the only payments you'll have to make every month.
What if, though, you are not a homeowner? How can you too cash in on debt consolidation? It is, to be certain, slightly harder to wrap all of your smaller debts into a larger, lower interest loan without a house to use as collateral. An unsecured personal loan could possibly have slightly higher interest, and not be tax deductible. Nonetheless, if you are paying higher interest on anything else, it is still a better choice.
Debt consolidation can be the freedom from stress that you need. Imagine receiving a lump sum payment that can eliminate all of your little bills and potentially save you hundreds of dollars a month in interest and minimum payments. Take control of your finances this year, and resolve to be stress free and relaxed with a debt consolidation program tailored to you.
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There are a variety of options for debt consolidation. As you shop for a new loan, be aware that there are several types that bill themselves as perfect for debt consolidation. The most prevalent is refinancing your existing mortgage. If you are a homeowner with only one mortgage on your house, this could be the best money-saving loan. After all, the interest you pay on your mortgage is tax deductible, so there is some benefit to using your home equity to pay off those other high interest unsecured loans.
Another option is to take a second mortgage on the house. The interest rates for this kind of loan are generally a few percentage points higher than on a second mortgage, but it is still likwly tax deductible, and may even be lower than some of your credit card interest rates. Debt consolidation in this form means you will have two mortages on your home, but those will be the only payments you'll have to make every month.
What if, though, you are not a homeowner? How can you too cash in on debt consolidation? It is, to be certain, slightly harder to wrap all of your smaller debts into a larger, lower interest loan without a house to use as collateral. An unsecured personal loan could possibly have slightly higher interest, and not be tax deductible. Nonetheless, if you are paying higher interest on anything else, it is still a better choice.
Debt consolidation can be the freedom from stress that you need. Imagine receiving a lump sum payment that can eliminate all of your little bills and potentially save you hundreds of dollars a month in interest and minimum payments. Take control of your finances this year, and resolve to be stress free and relaxed with a debt consolidation program tailored to you.
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