If your finances are dragging you down, you might want to look into debt consolidation. Home equity mortgages for consolidating debt are common. you then take the money from that loan, use it to pay your other bills and owe one creditor instead of several.
Consolidating with Home Equity
When you receive a home equity mortgage, you are loaned the difference between what is owed on your house and how much your house is worth. An example: You have a home that is worth $300,000 and you owe $120,000 on the mortgage. You can get a loan for $180,000. With that, you will be able to pay off your first mortgage and use $60,000 to pay off your credit card debt. You will have one debt with one interest rate to pay on. You will also have used your home as collateral for the loan.
It is not difficult to find a company to give you a loan when you own your own home. Issues that may come up are concerned with which company to choose to get the best deal and real assistance rather than being left penniless. Research the companies you talk to about a home equity mortgage before you make up your mind. Use consumer services and complaint forums as well as word of mouth reviews to help you make your decision.
If you are considering a loan, find out about the interest rates before you sign anything. If the interest is higher than you can afford to pay or will cause the loan to take longer to pay off, look for a company that has better rates. Obtaining a home equity loan might not be in your best interest, especially if you have real issues with spending more than you can afford to spend. If that is the case, get some credit counseling. This type of service will help you figure out how to get out of debt and control your spending.
Using a home equity mortgage to consolidate your debt may go in one of two directions: You might get a better deal and pay it off quickly or you might lose your house. Put a good deal of thought into your debt problems. Your first priority should be to figure out how you got in this position in the first place.
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