Debt Consolidation Mortgages

Between mortgage, insurance and credit card payments, it can be difficult to stay on top of your bills, let alone pay off your outstanding debts. If you owe money to several different lenders and you want to lower the amount of interest you are paying, as well as simplify the payment process itself, then debt consolidation may be for you. With debt consolidation, you pay off all of your high interest loans with one large low interest loan. That means less money going out the door every month and only one simple payment!

Interest rates on debt consolidation loans are typically quite low, and your consolidated debt interest should be much lower than the combined interest rates of your other loans. So, rather than paying 18% on credit cards, 12% on student loans and 15% on your car loan, you may, for example, only have to pay 7% interest on your consolidated debt loan.

There are a variety of debt consolidation instruments on the market, and you can find and compare them all right here at LowestRates.com. Many lenders offer debt consolidation services, where they extend you a loan to pay off your high interest rate debts or pay your creditors directly. Either way, you’ll have the simplicity of one monthly bill along with a lower monthly payment and a better interest rate. A debt consolidation loan really is one of the smartest financial decisions you can make if you owe multiple creditors.

If you own a home, you can use your available home equity to consolidate your debts with so-called “cash-out” refinance of your current mortgage, where you take out a loan large enough to discharge your existing mortgage as well as to pay off your high interest rate debts. Add in the fact that mortgage interest is tax deductible and refinancing becomes a powerful debt consolidation tool! Of course, you’ll also have to consider the mortgage fees associated with refinancing before you decide if it is the right financial decision for you.

You can even consolidate your debts with a home equity loan or a home equity line of credit, where you simply borrow against your home to pay off your creditors. The interest rates on home equity loans are vastly lower than on credit card debts, and you will also have the convenience of one monthly payment.

Additionally, with debt consolidation, you can create a clear-cut debt repayment plan that offers you the ability to accurately determine how large your payments need to be each month and how long it will take to become debt free. There are many companies in the marketplace offering debt consolidation services, each offering certain benefits. It is best to get a range of quotes from different companies to determine how you’ll pay off your debts as quickly as possible. Here at LowestRates.com we have all the tools you need to get you started.