How Do I Consolidate My Debts

By John Alexander - Jul 27, 2009

Consolidating your debt is a painless process that will help you get out of debt much faster. When considering consolidating debt, there are essentially two distinct paths You can consolidate your debt through either a debt consolidation loan or a debt consolidation service. A debt consolidation loan is essentially a home equity loan. Because the interest rate on a home is typically much lower than that of credit card debt, consolidating your debt through a debt consolidation loan should lower your overall monthly payments significantly. As long as you have equity in your home, you can take out a debt consolidation loan. One disadvantage of a debt consolidation loan is that its paid off over the life a mortgage; therefore, the loan simply shifts your debt into your mortgage. If your main concern is to pay off your debt fast or you do not own a home, a debt consolidation program can help you get out of debt in as little of 1 to 5 years. The benefits of debt consolidation program is that in addition to lowering payments, you have a defined path to paying off the debt. Most debt consolidation services require a small monthly maintenance fee; however, the overall savings by going through an agency as well as being able to pay of your debt in a timely manner offset any disadvantages.

When you need to consolidate your debt, know that you have good options. Debt Consolidation Union offers many debt solutions including debt consolidation and debt settlement. If you'd like to further discuss your options, please feel free to contact us toll free at 1-800-987-8310