Save Money by Pulling Debt Together

It’s easy to find yourself paying 20 different bills in one month. The problem is, that’s not in your best interest. By consolidating debt into one payment, you can lower the total amount paid out and save money in interest fees.

Debt consolidation is the key. There are a number of ways to achieve debt consolidation, but in essence, every path to debt consolidation is a new loan that rolls all of your old debt into one payment per month. This saves time and usually saves money by providing a lower interest rate on a longer term payment plan.

YourCreditCompany.com guides you through the best type of debt consolidation loan for your situation. We offer counseling on the best option, which can be especially tough to discern in this volatile market. Our goal is to get you in a better financial place, and we’ll make it as simple and painless as possible. But first, let us explain the various options for debt consolidation below.

Use Your Home Value to Consolidate

A smart way to consolidate debt is to use the equity in your home as security. This can be done by re-financing your primary mortgage, or it can be done through a second mortgage. Both have distinct advantages.

Debt consolidation that includes your primary mortgage has the simple result of leaving you one payment for all your debt. YourCreditCompany.com does this by helping refinance your current mortgage to include the additional funds you need to borrow to pay off other debt. This also usually allows your debts to be paid back on longer terms at better interest rates. And for you, it’s simple: one payment that you can easily work into your budget.

For those with a great primary mortgage they don’t want to mess with, there are other options. A second mortgage can also use the equity in your home to consolidate debt. There are two ways of acquiring a second mortgage. One way is to get a fixed second mortgage. This will work much as a conventional first mortgage: you’ll have a long term payment plan, usually 15 or 30 years, with either a fixed or adjustable interest rate. This is a good plan for someone who doesn’t need any extra flexibility and who doesn’t want any surprises.

Another type of second mortgage is a Home Equity Line of Credit (HELOC). The HELOC allows re-use of available funds because it is a line of credit. Say you take out a $20,000 HELOC loan to pay off $20,000 worth of debt elsewhere. Within a few years, you’ll probably get the amount you owe down considerably. Let’s say you’ve gotten it down to $10,000. If something comes up—a medical bill, an unexpected repair, a special vacation—you can use up to your remaining $10,000 of credit for that purpose. The HELOC gives you a constant flexibility in your life—when the funds are available and you need them, you just write yourself a check.

The other nice aspect of the HELOC is that you only pay interest on the current balance owed. So, as you pay off the debt, your interest payments decrease with the lower balance.

Loans based on your home equity can be complex and confusing, but YourCreditCompany.com, along with our partner Downing Financial, will make the process simple and clear. We’ll help determine the best loan for your needs, and answer all of your questions along the way. Our goal is to help you consolidate to your advantage.

Use Personal Credit to Consolidate

If you’re not a homeowner, or if you prefer not to take out a loan that uses the equity in your home, consider using a personal loan to consolidate debt. A personal loan can be for up to $15,000. A personal loan does need to be secured, such as with a car, although homeowners can be considered for an unsecured loan. Young people just establishing credit might also qualify with an appropriate co-signor on the loan.

YourCreditCompany.com, along with our lender CitiFinancial, can get your personal loan started today.

The End Result

No matter which debt consolidation loan method sounds best to you, the end is the same—a better deal for you. Let YourCreditCompany.com get you started on debt consolidation today.

If you don’t qualify for any of these loans, the good news is YourCreditCompany.com can still help. Through our credit resources, we can guide you in re-building your financial life and get you back on track and in the game.

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