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Debt Consolidation Personal Loan - The Bills.com Blog
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Debt Consolidation Personal Loan
Monday, Aug 20, 2007
Question: My partner and I have upwards of $8000 worth of bills. These include active credit card debt, as well as paying off a scooter and laptop. We are thinking of getting a personal loan to pay these off, which will then allow us to pay the loan payments back. How would you advise such a decision?
Answer: If you can qualify for a personal loan with an interest rate lower than the average interest rates being charged on your current debts, paying off these debts with an unsecured debt consolidation loan could improve your financial situation. The problem with this type of loan is that, unless you have very good credit, the interest rate charged for an unsecured personal loan may actually be more than you are currently paying for your other bills.I encourage you to visit the Bills.com Debt Consolidation Resources page at http://www.bills.com/debt-consolidation/ to read about the various debt consolidation options available to consumers and how an unsecured debt consolidation loan may be able to assist you. To determine whether or not an unsecured personal loan can save you money, you should contact several lenders to find out the interest rates they can offer you on an unsecured personal loan. If you find
that the interest rates offered are less than the average rate you are currently paying on your debts, then you should strongly consider consolidating your debts with an unsecured personal loan.
If you own a home, a secured debt consolidation loan may be right for you. This type of loan is essentially a home equity loan which is used to pay off your other creditors. Secured consolidation loans help many consumers by consolidating all of their debts into a single monthly payment with a lower interest rate and payment amount. However, be careful before you borrow money against your home to pay off credit cards and unsecured loans; you are converting what was previously unsecured debt into secured debt. This could cause you problems down the road if for some reason you are unable to make your payments, or
If you own a home, a secured debt consolidation loan may be right for you. This type of loan is essentially a home equity loan which is used to pay off your other creditors. Secured consolidation loans help many consumers by consolidating all of their debts into a single monthly payment with a lower interest rate and payment amount. However, be careful before you borrow money against your home to pay off credit cards and unsecured loans; you are converting what was previously unsecured debt into secured debt. This could cause you problems down the road if for some reason you are unable to make your payments, or
if life circumstances force you to file bankruptcy, as you may not be able to discharge the secured debt as you would unsecured debt. However, secured debt consolidation loans work for many people, so this is an option to consider carefully–the Bills.com Savings Center is a great resource to help you find a lender for this type of loan.
Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the loan page and find a loan that meets your needs at: http://www.bills.com/mortage/refinance/
Bills.com offers a wealth of information about debt consolidation and other debt resolution options. I invite you to visit our Debt Help Resources site at http://www.bills.com/debt-help/ to read about the different options available to you. I hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com
Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the loan page and find a loan that meets your needs at: http://www.bills.com/mortage/refinance/
Bills.com offers a wealth of information about debt consolidation and other debt resolution options. I invite you to visit our Debt Help Resources site at http://www.bills.com/debt-help/ to read about the different options available to you. I hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com
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