0
Debt consolidation is when you take out a new loan to pay off all your debts - often at a lower interest rate. If you___re having trouble keeping up with several high-interest loans, it could be worth looking into. Debt consolidation can save you money, but there are risks.
Wiki User
∙ 10y ago
Add your answer:
Earn +20 pts
Should you consolidate your debt through a second mortgage?
You may be able to lower your cost of credit by consolidating your debt through a second mortgage or a home equity line of credit. Think carefully before taking this on. These loans require your home as collateral. If you can't make the payments
How could mortgage refinance debt consolidation be important to me?
Refinancing your mortgage and consolidating your debt are great ways to free up some money if things are tight. Combining all debt onto one credit card, for instance, can mean a lower interest payment as well as the convenience of having it all in one place.
How would one go about remortgaging their debt?
Remortgaging is taking out a new mortgage to replace an existing mortgage with the potential to consolidate debt and reduce payments. The least expensive way to remortgage ones debt is to negotiate with ones current lender for a new mortgage with a lower interest rate, consolidating ones debt at the same time. By extending the length of the mortgage, the monthly payment may be reduced. The alternative is to seek a new mortgage from a different lender and pay off the existing lender. The goals of debt consolidation and reduced monthly payment remain the same.
What are the alternatives to consolidating loans when faced with debt problems?
On the subject of alternatives to consolidating loans while facing debt problems, it may be worth the effort to consider getting oneself into some form of debt settlement.
Does consolidating debt loan help improve your credit score?
A debt consolidation does absolutely nothing to improve your credit score. Consolidating debt causes you to simply borrow more money to pay off old debts.
Are you debt free if you have a mortgage?
No. You are in debt as much as you still owe on the mortgage.
What are the benefits of second mortgage loans?
Some of the benefits of a second mortgage loan is that it allows one to borrow large sums of money based on the equity that one has built up on their home. Second mortgage loans are often used for debt consolidation and home improvements.
Is a home mortgage debt considered a federal debt?
No. A federal debt is a debt that is owned to the federal government. A home mortgage is a debt that is owed to the lending agency, be it a bank, a mortgage company, etc.
What should one do if they have bad credit during remortgages?
One with bad credit can speak with their financial advisor when applying for or renewing a mortgage. Depending on what is affecting their credit, they can often offer solutions. Interest rates may increase, or they may be able to help with consolidating the other debt with the mortgage.
Where can you find out about consolidating debt?
The best place to find out what consolidating debt involves and what options are available would be through a financial advisor. One could get information on line by visiting the website for the Office of Consumer Affairs.
Where can one find information on consolidating debt from credit cards?
There are many websites that have information on consolidating debt from credit cards. Among them are Care One Credit, Nolo, Family Credit, Money Management, and Wikipedia.
Where can someone find information on consolidating payments?
There is information on consolidating debt payments at the Consolidated Credit Counseling Services of Canada, Inc. site online. RBC Royal Bank also has information on consolidating payments.
