Contra Costa County Debt Consolidation

Contra Costa County Debt Consolidation Solutions

Of the 1 million Contra Costa County residents, 172,000 families own their own homes, which means many local families and residents are eligible to consolidate debt into a home equity loan, one of the most affordable choices for debt consolidation. If you don’t have a home, you can still consolidate debt through a personal loan or credit card balance transfer to make repaying your debt more manageable.

Home Equity Loan Consolidation
A homeowner in Walnut Creek who had owned her home for several years opted for a home equity loan debt consolidation. Instead of altering your current mortgage, the home equity loan is a second fixed-rate loan for a fixed amount of money and a fixed term. You can use the money for anything you want. If you’re using it to pay debt, you would make payments for the full balance to your various creditors, then repay the home equity loan over time like you pay your mortgage.

A home equity loan usually has a low interest rate that is tax deductible, but you could lose your home if you can’t make the payments on both the new loan and your original mortgage. A borrower in Clayton finds that he’s easily able to make both payments once the tax and interest savings are calculated in.

Home Equity Line of Credit Consolidation
A homeowner in Concord opted for a home equity line of credit instead. The HELOC has an adjustable interest rate, but acts as a rotating credit account that you can draw upon at any time. You pay back the amount

borrowed over time and can borrow additional money up to your credit limit anytime. The HELOC is as easy way to consolidate debts or finance continuing home improvements.

Like a home equity loan, the HELOC usually has low, tax-deductible interest rate and doesn’t alter your first mortgage. It also carries the same risk: if you borrow more than you can repay, you could lose your home. A Moraga homeowner used a HELOC to pay off several credit cards, then when the balance on the line of credit was zero, he used it to buy a new washer/dryer set.

Personal Loan Consolidation
If you don’t own a home, you can apply for a personal loan, like a borrower in Pittsburg did. To get a personal loan, you will need to have excellent credit because these are unsecured loans. You don’t offer any collateral for the loan, but have a much higher interest rate than either home equity loan or HELOC offers. The interest is also not tax deductible. A borrower in Antioch who received a personal loan used most of the money to pay down debt, but also borrowed enough money to replace the engine on his car instead of buying a new car.

Balance Transfer Consolidation
If you have a small enough debt that you can repay it within a year, but would like to simplify your payments and reduce your interest rate, you can take advantage of a credit card balance transfer consolidation as a resident of Lafayette did. She transferred all her debts to 0% interest credit card, and then paid off the balance before the interest rate expired. She saved hundreds of dollars in interest without dealing with mortgage applications or other loan applications.

Whatever your financial situation, you have several options for debt consolidation in Contra Costa County. If you need help choosing, a credit counselor can further advise you on your choices.

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