Guide to Debt Consolidation
Debt consolidation loans: The advantages. Debt consolidation loans are incredibly popular. The … Debt consolidation loans carry some risks, and borrowers …
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Guide to Debt Consolidation, An Interactive Workbook, 1-800-291-1393, 57584082, Debt consolidation loans are any, Debt consolidation loans often relieve a budget, crunch. By bringing monthly payments down, debt, type of credit you use to, consolidation loans free up cash for current household, consolidate debt. needs. Some options — the cash-out refinance and second, mortgage types — may bring income tax benefits along, with debt consolidation (consult your tax adviser). The most popular loans to consolidate debt, are, Debt consolidation loans: The drawbacks, Cash-out refinance debt consolidation loans, Second mortgage debt consolidation loans, Debt consolidation loans carry some risks, and borrowers, Home equity line of credit (HELOC), need to be honest with themselves to avoid being snared. Home equity loan, Taking on a debt consolidation loan without a, Credit card balance transfers, corresponding change in budget and spending habits, enables many people to plunge even deeper into debt. Debt consolidation loans: The advantages, Most debt consolidation loans extend the length of, time the borrower has to repay by years. So, even with, Debt consolidation loans are incredibly popular. The, a lower interest rate and possible tax deductibility, the, advantages are plain to see, ultimate cost of borrowing may be higher with a debt, Debt consolidation loans help reduce the number of, consolidation loan. bills and due dates to manage. Debt consolidation loans can deplete home equityDebt consolidation loans may bring double-digit, emptying assets that could be used to handle true, interest rates down to single digits. emergencies or lowering your standard of living at, retirement. 3 mistakes to avoid when you, companies are under the scrutiny of financial, consolidate your bills, regulators, and can\’t afford to damage their, reputations. They\’re more likely to have safeguards, to ensure you\’re treated fairly. Here are a handful of tips designed to, help protect you, 3. Don\’t overdo it. Debt consolidation is a wonderful way to reduce the, 1. Shop for a lender, not a loan. number of bills you have to pay, lower your interest, The trustworthiness of the company you choose will, rates, relieve a budget crunch and enjoy possible tax, likely determine the quality of the loan you end up, benefits (consult your tax advisor). But it\’s possible, with. It\’s okay to demand evidence of integrity. They, to overdo it. For example, don\’t, should have a solid history of satisfied customers, * Pay off debt that charges lower interest than the, going back many years. debt consolidation loan. * Use debt consolidation to bail yourself out of, 2. Avoid unknown shops and lean, debt caused by overspending…and then, toward large, reputable companies. continue to overspend. * Deplete your home equity over and over, leaving, This might go against your bargain-hunting instincts;, yourself without assets to handle true emergencies, but people with excess debt could be more vulnerable, or lowering your standard of living at retirement. to unscrupulous business practices. Large, well-known, Interactive Worksheet!, How much debt do I have?, Fill in the blanks and we\’ll calculate the total debt!, Debt Type, Balance, TOTAL Debt Balance, Find out how much you can save by, consolidating all your debt into one, convenient payment. Call us at, 1-800-291-1393 for a FREE, no, obligation consultation.