Consolidating debt into a mortgage
So instead of making multiple payments, you're now just making one.
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.If you are feeling overwhelmed with debt, or just need a helping hand to learn how to manage debt we are here to help. Tara - Branch Manager Many of us have debt in a number of different places.There's credit cards, store cards, car loans and lines of credit...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. 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.
While unsecured debt consolidation loans can be easier to obtain and more convenient than secured debt consolidation loans, they generally have higher interest rates, so they are more expensive to pay down than a secured debt consolidation loan.
Another option for lowering your monthly payment is with a long loan term.
However, a longer loan term means you may pay more interest total.
Unsecured loans are more common, but you can use a secured loan for unsecured debt, such as a home equity loan used for credit card debt consolidation. Secured debt consolidation loans are typically available at brick-and-mortar financial institutions, including banks and credit unions.
They use collateral, such as home equity used to secure a home equity loan, and generally have better interest rates than unsecured ones.
Moving your outstanding credit balances to one low rate payment could save you money and time—making it easier to manage your money.