Consolidating debt into a mortgage
So instead of making multiple payments, you're now just making one.
Debt consolidation loans are used to pay off and simplify existing debt by consolidating multiple payments and accounts into a single account with one lender and payment. Depending on your creditworthiness, you may be able to receive a lower interest rate on a debt consolidation loan than you are currently paying on your debt, saving you money on monthly payments and overall interest.
A Mortgage is a long term debt to help finance the purchase of your home, leaving you with a financial asset when it is paid off.
Everywhere you turn it seems credit is being offered, credit card offers in the mail, at the supermarket and "Buy Now - Pay Later" incentives. If you're choosing a credit card for a rewards program, for example to take that free flight, make sure the benefit is greater than the annual fee.
This makes applying for a loan convenient, and some providers offer instant approval online, so you can find out right away if a loan is going to work for you.
Home equity debt consolidation loans, a type of secured debt consolidation loan, offer a fixed interest rate.
If you know you're not going to pay off your credit card balance every month, take a look at a low interest credit card option to help keep interest costs down.
Also be aware of the temptation of the "Buy Now Pay Later" offers - make sure the funds are available to pay that bill before it is due.
If you're feeling like your level of debt isn't where you want it to be, and you're committed to paying it down, a debt consolidation loan can be a great way to take back the control you're missing.
A debt consolidation loan allows you to combine different debts into one loan.