Consolidate your loans
If you are like most people you have more than one debt. You may have high interest rate credit cards, auto loans, installment,other debts, and mortgages. To pay off one debt you may need to borrow from someone else, creating yet another debt.The ideal solution to this problem is a debt consolidation mortgage.If you own a home, you can get a debt consolidation home equity loan. With a debt consolidation loan you can consolidate some or all of your high interest credit cards, as well as your consumer loans, into one inexpensive and affordable monthly payment with low interest. This saves many people tens of thousands of dollars in their lifetime.
Consolidate debt with home equity as security
A debt consolidation home equity loan is a secured loan where your property will be security against the loan. The lender will have a lien on your house until you pay off the home equity loan in full. While you’ll continue to own your home as loan collateral, the debt consolidation loan will keep the creditors away and keep you out of bankruptcy. You’ll be able to save considerably, because the single monthly payment will be less than the sum of the monthly payments you had before on the multiple debts.
The first thing to do once you’ve obtained current balances and looked over the use of your debts is to
Tax deduction and home equity loan consolidation
Another possible advantage is that interest you pay on your equity debt consolidation loan may be tax deductible. Normally, if you add your first mortgage to a new debt consolidation loan, and the total does not exceed 100% of the appraised value of your property, the interest you pay will be fully deductible. Your tax consultant can advise you on the matter, and it’s always a good idea to check with him or her.