The situation is as follows. With credit cards my friend is in debt about $20,000. The interest is considerably high. She currently has a mortgage but I am not sure of the specifics. She needs to consolate without touching the home to get the interest down and get one payment. Is this possible or will the house mortgage have to be touched.
2007-02-06 04:52:12 · 2 answers · asked by Miss Need 2 Know 2 in Business & Finance ➔ Personal Finance
Consolidation loans require some form of collateral to keep the interest low. The best form of collateral is a house. If she refinances the mortgage, with debt consolidation, she can pay off everything, except the house, and have only one payment, probably not much more than the current mortgage payment.
2007-02-06 05:02:16 · answer #1 · answered by Uther Aurelianus 6 · 0⤊ 0⤋
If her credit is good, she may be able to get an unsecured loan to consolidate debt. If it is not so good, she will have to use the equity in the house as security. Secured debts have lower interest rates.
2007-02-06 13:01:26 · answer #2 · answered by crossbones668 4 · 0⤊ 0⤋