Personal debt consolidating mortgage


17-Jan-2017 20:04

Homeowners who are looking to consolidate their debts have the option of using their home equity to secure a loan or line of credit.

A home equity loan or line of credit allows you to obtain a lower interest rate and a higher credit limit by using the equity you've built in your home as security.

First, you may be able to get a lower interest rate on your consolidation loan than you were paying on your various other debts.

With interest rates on credit cards often ranging from 12-18 percent, that can produce a real savings.

By consolidating your debts into a home equity loan or line of credit, you'll have the convenience of one consolidated payment rather than having several bills from different creditors.

This makes bill payments more manageable and the rate is usually lower, helping you pay off your debts sooner.

In many countries, especially the United States and the United Kingdom, student loans can be a significant portion of debt but are usually regulated differently than other debt.

Second, you may be able to set up a consolidation loan that lets you pay off your debt over a longer time than your current creditors will allow, so you can make smaller payments each month.