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Information and Advice on Getting a Loan to Pay Off Debts

Mark Cappel
UpdatedMay 1, 2008

My wife and I need a loan for $120,000 so that we can pay off all of our bills. Who can we contact for this?

My wife and I are in need of a loan for $120,000 so that we can pay off all of our bills with the exception of our house. Who can we contact for this? We want a loan no longer than 7 years. We are able to pay back $750.00 every two weeks until it is paid. We just have a lot more than that going out in other bills to where we are not able to start doubling up on certain bills. Thanks

For the kind of loan amount that you are seeking, I think a personal loan (without collateral) is out of the question as they tend to cap out at about $30,000 in total loan amount. In case you currently own your home then the only options available for you will be a home equity loan, or a home equity line of credit (HELOC).

Home equity is the value between what your home is worth (in a sale, or an estimate of this determined by an appraisal) and the amount you owe on a mortgage(s). If your home is "paid off" or you do not have any mortgage balance remaining, you can certainly 'tap' that value by either refinancing your home, and creating a first mortgage, or by taking out a Home Equity Line of Credit (HELOC).

Home equity lines of credit (HELOCs) are credit lines given to homeowners based on the amount of equity in their home, and are a common type of loan used by borrowers to access their home equity. Unlike home equity loans, which provide a one-time lump sum loan secured against a home, HELOCs provide an open line of credit, with the credit limit determined by the amount of equity in the home, allowing homeowners to borrow what they need, when they need it. HELOCs are especially popular with homeowners planning home improvements, as they provide much more spending flexibility than traditional home equity loans.

You should contact various home equity lenders to discuss the loan terms they can offer you. It is important that you speak with at least three or four lenders so you can compare the interest rate and loan terms being offered by different lenders; this should give you a good idea of what interest rate you can expect to pay. I also encourage you to visit the Bills.com Home Equity Line Resources page at http://www.bills.com/home-equity-line/, where you will find a wealth of information and resources for consumers looking to obtain a home equity line. An especially helpful article, which will tell you what to look for in a new home equity line of credit loan, can be found at http://www.bills.com/home-equity-line-of-credit-loans-articlebills/.

If you are looking to borrow money to pay off other debts, a home loan is almost always your best route, since you get a low rate and the interest is tax deductible.

Bills.com makes it easy for you to apply for a loan, just fill in your information at: Mortgage Refinance Quote. Be sure to shop around and compare options, so that you get the best deal suited for your needs.

I wish you the best of luck in obtaining a home equity line of credit that meets your needs, and hope that the information I have provided helps you Find. Learn. Save!

Best,

Bill

www.bills.com/blog

3 Comments

DDavid Peterson, Jul, 2019

I’m Helena Davydova by name. I live in Croatia, i want to use this medium to alert all loan seekers to be very careful because there are scammers everywhere. Few months ago I was financially strained, and due to my desperation I was scammed by a lending firm called David Peterson Loan Firm.

BBill, Aug, 2008
I'm afraid that any type of an unsecured loan is going to carry a high rate of interest (when compared to home equity loans) just because of the fact that it is unsecured. There will be limits of the amount of the loan you would qualify for, based on your credit, income and your current debt to income ratio. The only way to go is to apply and compare at different places. I would try credit unions, as they seem to look at every application on a case to case basis, unlike the big banks where its automated process with a yes or no answer.
FFrances, Aug, 2008
There is no equity in my home. I need an unsecured loan to pay off high credit unsecured debt. I need one payment and intend on working very hard to pay it off sooner than I would with the other high interest loans.