Have you been considering debt consolidation, but you are not sure if it is right for you or not? Do you wonder if you should consolidate your debts into your mortgage or if you should get another form of debt consolidation help? You can avoid ending up in a worse situation than you already are in and you might be surprised.
You need to start by understanding that debt is not a way of life and does not have to be your norm. Those that give out the money like the credit card companies and the other lenders would love it if debt was a way of life, but it is not. You do not need to live with debt and you should live debt free.Here are a few situations that would be good for a debt consolidation loan.
Situation #1 – You are a home owner with over $10K in unsecured debts with a very high interest rate. High interest meaning that the interest rate is more than double that of your mortgage interest rate, and plenty of equity meaning that you have at least 30% of your homes’ value available.This situation is perfect for a fixed rate refinance to cover the unsecured debts.
Situation #2 – If you have over $5,000 in unsecured debt that has an interest rate of over 15%. This situation is perfect for a debt consolidation loan against a paid off car or just without collateral.
Situation #3 – If you have just graduated college and you have student loans. It is much easier to manage your student loans once you consolidate them and you can usually get a lower interest rate anyway.Here are a few situations where a debt consolidation program will work best.
Situation #1 – You are a homeowner with maxed out equity and still have over $10K in debts to deal with. Without the equity in your home, a loan is out of the question and a debt consolidation program is best. The last thing you want is a mortgage that extends past the value of your home.
Situation #2 – If you have over $20,000 in unsecured debt. If this is you, then you need to consult a debt consolidation program right away and get working on this debt.