What is a Debt Consolidation Home Loan?
In recent years the everyday household debt has hit record high levels. This goes way beyond the regular home and car loan. A LOT of people now also have a large amount of credit card debt which attracts rather massive interest rates. Even though we have all witnessed the interest rates on property drop dramatically in recent times, the credit card interest rate has remained steady and shows no sign of decreasing any time soon!
If you have credit card debt, it is likely that you are paying much more interest than you need to. Did you know that if you make the minimum monthly payment on your credit card, it usually only covers the interest from the previous month! Not only does this cost you money, but it takes a lot longer to pay the debt off!
If you can, make more than the minimum monthly repayment, because there are so many other (and better) things you can think of doing with your hard earned money than giving to your bank every month! Don't they get enough of your hard earned money?
How Consolidating Debt Will Benefit You and your Family!
If you have credit card debt or a personal loan and are paying a high interest rate, it could be a shrewd financial move to roll them into one easy to manage loan. Think about the benefits... you will only need to make ONE payment each month in most cases, and of course the payment (or payments) will be much lower than before.
You may also experience an added bonus of a massive decrease in stress levels as well! Being in control of your financial situation is a great feeling; you should enjoy life after all! There are a lot of options available to you, to help you reduce debts. While you can learn a lot by doing your own research on the Internet, it may be a good idea to consult with a qualified financial planner or financial counsellor.
It is really a case by case thing. Different options may be appropriate, depending on your current situation, your incomes and your assets. If you do not know a financial advisor, ask around for references. Friends or family may be able to put you in touch with someone.
If you have an accountant they may also be a qualified financial planner. If not, why not put on that detective cap and do a bit of detective work online!
What is a Home Equity Loan?
If you are considering debt consolidation, home loan equity is a great way to do it. Essentially, a debt consolidation home loan is a way to access the value of your property. That is a home equity loan is issued for the difference between the loan on your property and its actual value. Usually this money is given to you as a lump sum, you can use towards debt consolidation, in fact you can use this money towards anything you like.
If you have been planning a holiday or wedding and have never been able to afford it this is a great way to access some money. Of course you may not want to put up your home as security, or you simply may not be able to. An unsecured debt consolidation loan may be available to you if you have a good credit history.
Unsecured Debt Consolidation Loans - Are they the way to go?
If you feel uncomfortable taking on the risks involved with a home equity loan, unsecured debt consolidation loans could be the perfect solution that you are looking for! This works the same way as an unsecured personal loan. To achieve this, you will need to have good credit and excellent conduct.
This is because the risk to the bank is quite large. The interest rates and fees included in this type of loan product are much higher than a secured debt consolidation loan, obviously to compensate the lender for the high risk factor.
You can be in Control of your Financial Freedom!
If you are considering a debt consolidation home loan, it is likely that your financial situation is as good as it could possibly be. Unsecured debt consolidation loans may not be an option for you. Although the good thing is, is that you are making steps to improve your financial position.
Be positive, both credit repair and debt consolidation are the first steps to a healthy financial life. Most people end up in a bad financial situation because they have not taken responsibility for their own choices and have not properly researched these decisions.
Even if you have made mistakes in the past, it is never too late to get in control of your monetary life.
If you have credit card debt, it is likely that you are paying much more interest than you need to. Did you know that if you make the minimum monthly payment on your credit card, it usually only covers the interest from the previous month! Not only does this cost you money, but it takes a lot longer to pay the debt off!
If you can, make more than the minimum monthly repayment, because there are so many other (and better) things you can think of doing with your hard earned money than giving to your bank every month! Don't they get enough of your hard earned money?
How Consolidating Debt Will Benefit You and your Family!
If you have credit card debt or a personal loan and are paying a high interest rate, it could be a shrewd financial move to roll them into one easy to manage loan. Think about the benefits... you will only need to make ONE payment each month in most cases, and of course the payment (or payments) will be much lower than before.
You may also experience an added bonus of a massive decrease in stress levels as well! Being in control of your financial situation is a great feeling; you should enjoy life after all! There are a lot of options available to you, to help you reduce debts. While you can learn a lot by doing your own research on the Internet, it may be a good idea to consult with a qualified financial planner or financial counsellor.
It is really a case by case thing. Different options may be appropriate, depending on your current situation, your incomes and your assets. If you do not know a financial advisor, ask around for references. Friends or family may be able to put you in touch with someone.
If you have an accountant they may also be a qualified financial planner. If not, why not put on that detective cap and do a bit of detective work online!
What is a Home Equity Loan?
If you are considering debt consolidation, home loan equity is a great way to do it. Essentially, a debt consolidation home loan is a way to access the value of your property. That is a home equity loan is issued for the difference between the loan on your property and its actual value. Usually this money is given to you as a lump sum, you can use towards debt consolidation, in fact you can use this money towards anything you like.
If you have been planning a holiday or wedding and have never been able to afford it this is a great way to access some money. Of course you may not want to put up your home as security, or you simply may not be able to. An unsecured debt consolidation loan may be available to you if you have a good credit history.
Unsecured Debt Consolidation Loans - Are they the way to go?
If you feel uncomfortable taking on the risks involved with a home equity loan, unsecured debt consolidation loans could be the perfect solution that you are looking for! This works the same way as an unsecured personal loan. To achieve this, you will need to have good credit and excellent conduct.
This is because the risk to the bank is quite large. The interest rates and fees included in this type of loan product are much higher than a secured debt consolidation loan, obviously to compensate the lender for the high risk factor.
You can be in Control of your Financial Freedom!
If you are considering a debt consolidation home loan, it is likely that your financial situation is as good as it could possibly be. Unsecured debt consolidation loans may not be an option for you. Although the good thing is, is that you are making steps to improve your financial position.
Be positive, both credit repair and debt consolidation are the first steps to a healthy financial life. Most people end up in a bad financial situation because they have not taken responsibility for their own choices and have not properly researched these decisions.
Even if you have made mistakes in the past, it is never too late to get in control of your monetary life.