should i get a debt consolidation loan on my home to pay off debt?

Question

I have about 760 credit rating Im at 5.85 interest rate for 30yrs.. I put 20000 in credit card debt into credit counsiling for a year and a half its going down fast but money is tight thinking about different options

Answer 1

Here is a good article to help you weigh your options....

http://www.expert-credit-advice.com/options_to_eliminate_debt.htm

Answer 2

It really depends on your situation. A home equity loan can reduce your interest rates on debts and in many cases the interest is tax deductible (check with accountant) so that's an advantage; however, make sure you choose a fixed rate and not variable. Debt is still debt so make it a mission to pay that consolidation off asap and make sure there are no pre-payment penalties before you sign on the dotted line. If you run into a problem with finances down the road, your equity in the house is what'll suffer. The most intelligent choice is a home equity, NOT home equity line of credit, and fixed rate for fixed term. Another option is to transfer debt to a low interest or no interest credit card and then get it paid off. There's good debt and bad debt... a home is good debt. Don't make it bad.

Answer 3

It's hard to say without knowing more: Are you employed? How much debt do you have? What is your credit like? I think you are asking if you should refi your mortgage to include the other debt you have acquired. It's a very bad idea if you might not be able to pay the mortgage once you do, because you will lose your home. If you will still be able to make the payments, and it will lower your interest rate, then it could be very helpful indeed. Good Luck!!

Answer 4

Any debt over 15000 makes sense to refi. Some credit cards are at 14% and a mortgage would be 5.75% if you qualify. Give me a call so i could help with the loan. Give me a call at 631- 355- 6916.

Answer 5

Bad credit is one of the worst problems to have... however there exists a solution.

I will hereby talk from my personal experience.

I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,

a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :

http://umgarticles.atspace.com/debt-consolidation.htm

if it helps kindly remember me in your voting!.. cheers!

Answer 6

You might check out http://loanconsolidation1.blogspot.com They have some very helpful information on loan consolidation and credit card debt.

http://loanconsolidation1.blogspot.com

Answer 7

Have a good look at the interest rate and time period as the rates are invariably high. If you have equity in your home, go for a bank loan or a remortgage it will be far cheaper......................