Types Of Debt Consolidation Loans

What kind of consolidation loans are available and should you borrow to pay off your debts?

Debt consolidation loans allow you to borrow to refinance or restructure debt. Refinancing your mortgage, equity loans, personal loans, etc., are all options you have to borrow money, and make one monthly payment until you are out of debt.

What Do Debt Consolidation Loans Involve?

They involve applying for the loan, being approved, then revising your budget to remove the paid debts, and including payment for new loans. It is important for your financial future, that you don't incur any more debt while making consolidation loan payments. If you do, you could find yourself back in over your head, and on your way to bankruptcy.

Quick Tips For Debt Consolidation Loans

If you haven't already done the Debt Worksheet (available in our printable monthly budget form), do it now. Review your Debt Worksheet so you know how much you need to borrow, and what interest rates you are currently paying.

Do the Income Worksheet and Monthly Budget so you know how much of a payment you can afford.

There is no fee, or obligation, when you apply online for a consolidation loan, so you can shop around for the best rate, and payment terms, you can get.

Allow yourself some leeway in your budget when calculating payments on consolidation loans. This will help you to pay it off faster and save interest.

Compare Secured & Unsecured Debt Consolidation Loans

If you own a home, vacation property, or other real estate that can be used as collateral, you may qualify for a first or second mortgage, home equity loan, or refinance of an existing mortgage to consolidate your debt.

1. Rates on secured loans are lower

2. Ability to borrow more money

3. Smaller monthly payments

Unsecured Consolidation Loans

If you don't own real property, you may qualify for personal loans that can be used to consolidate debts.

1. Unsecured loan, you don't risk your assets

2. Shorter payment terms

Check out the free Loan Advisor and get advice on the best loan for you.

Refinance now and lower your monthly payments. Refinance loans without perfect credit