Free Debt Relief Analysis

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Gather Basic Information

Answer a couple of basic questions about your debt. Based on your location, debt amount and type of debt, we can recommend a path.

Financial Coaches

Your certified debt resolution specialist will show you how to pay off your debt and give you the motivation to get there.

Debt Free

Follow the payment plan you agree to with your certified specialist and you are on the way to being debt free in less time and for less money than if you did it on your own.

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Debt Consolidation Loans

A consolidation loan is different from other debt consolidation products because you are taking out a new line of credit in order to pay off others. The most common type of consolidation loan is done by taking out a loan against the equity in your home to pay off your high interest debts.

The other option is a balance transfer line of credit. Be careful to read the fine print -- often what starts as a 0% balance transfer only lasts for a few months, after which you are no better off than you would be now.

Consolidation loans are just one option for managing your debt and should be considered carefully. To get a better idea of whether this type of debt consolidation will fit your needs weigh the pros and cons first.

Debt Consolidation Loan Pros

As with other programs, a major benefit is that you have only one consolidated payment to make every month to the new lender. This will help make managing your debt less time consuming and reduce the risk of making late payments.

Your monthly payment will generally be significantly less than your old debts and you will also be paying more towards principle since the interest rate is lower.

Taking out an equity loan to pay off your debts will generally not negatively impact your credit. It may, in fact, help since your debt-to-credit-limit ratio will be lower.

Debt Consolidation Loan Cons

Debt consolidation loans aren’t offered to just anyone with multiple debts. If you don\'t own a home with equity or have good credit a debt consolidation loan is likely not going to be available to you.

The biggest drawback of a consolidation loan that’s secured by the equity in your home is that if you default, your house is collateral and the lender can seize your home. If you aren\'t sure you will be stable enough to pay this loan in the future, opt for a debt management plan instead.

Although consolidation loans can lower your monthly payments, it’s typically done so by extending the time of repayment. With longer-term loans you may end up paying more in interest in the long run than you would have by paying more monthly for a shorter period of time.

Also keep in mind that consolidation loans can’t be undone once they are entered into. You want to make sure you trust your lender and that they offer solid customer service.

Benefits of Debt Consolidation

  • Lower Interest Rates
  • Lower Monthly Payments
  • Eliminate Debt in Less Time
Learn About Debt Consolidation