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Debt Consolidation and Credit Cards - The Bills.com Blog
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Debt Consolidation and Credit Cards
Question: To qualify for debt consolidation, must I have credit card debt?
Answer: Typically when people talk about debt consolidation, they are referring to consolidating credit card debt into one new debt payment. The consolidation loan is typically provided from a new credit card, an unsecured personal loan, or the proceeds from a mortgage refinance or 2nd mortgage.
If you are seeking to pay off debts that are not credit carddebts through consolidation, you will most likely need to obtain the proceeds from a mortgage refinance, or second mortgage. If the interest rate on the mortgage is lower than currently on your other debts, you may save a significant amount in interest from the consolidation. In addition, the interest payments
on mortgage debts are typically tax deductible - another great benefit. However, be sure that you leave yourself some financial breathing room with this new mortgage payment - once the debts are consolidated into your home, the failure to make payments could lead to foreclosure.
Bills.com makes it easy
to compare mortgage offers and different loan types. Please visit the loan page and find" target="_blank">https://www.bills.com/mortage/refinance/">find a loan that meets your needs
Also, make sure to get a free financial health check-up with Bills IQ!
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Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!
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