Al is an award-winning journalist with dozens of years of writing experience.
He served as a drama critic, high school teacher, arts administrator, theatrical producer and director. Al is a Certified Debt Specialist with the International Association of Professional Debt Arbitrators and specializes in real estate, credit and bankruptcy advice.
What types of debts can be covered by a debt consolidation?
Once you complete the refinancing process, you’ll owe only your primary mortgage lender instead of owing a number of third-party lenders and credit card companies. You are pulling equity from a property to pay off many bills and cutting the number of creditors – and bills – that you have.In addition to simplifying monthly payments, this technique has another major benefit: savings.The difference is that a HELOC is a line of revolving credit with an adjustable interest rate, instead of a fixed-rate, lump-sum loan.The borrower can decide when to use this open-ended credit.He also dabbled in politics, running twice for a seat on the U.
Consolidating debt with a home equity loan could be a good option. You may have high interest credit cards, loans and mortgages. This is the practice of rolling all your debts into a single, monthly bill.
If you have equity in your property, you can use it as collateral to secure another fixed-rate loan and pay off other debts.
Similar to a home equity loan is a Home Equity Line of Credit (HELOC).
A consolidation loan can reduce your monthly debt payments in two ways.
First, you may be able to get a lower interest rate on your consolidation loan than you were paying on your various other debts.
If you have a load of unsecured debt, such as high credit card balances, your top priority should be to reduce it as much as possible, as soon as you can.