Debt Consolidation - Consolidate Debt
Debt Consolidation by refinancing is an excellent way to save money. If you consolidate your debt, you can reduce your monthly credit cards debts and other loans that have high percentage interest rates attached to them. This lowering of interest rates alone will save you money. (APPLY NOW)
Debt Consolidation - Consolidate Debt (The Credit Card Effect)
Many credit cards have other charges attached when you go over the limit or take cash out rather than purchasing goods. By consolidation of that credit card debt, you will eliminate this unnecessary expense. In addition, there is another reason for debt consolidation which many borrowers never consider. "The FICO Score" effect. Your credit score can and will go down when you are over 50% of the available balance on any or all credit cards. You can read more about this on our (FICO scores) page. For now you need to understand that a lower credit score may affect your home refinancing ability and/or the interestrate that you get when you refinance. This change can literally cost your tens of thousands of dollars in long run or maybe even more. Therefore, though consolidating debt, you can help your credit score, lower your monthly payments, and actually have less bill to pay. But, there is even more.
Debt Consolidation - Consolidate Debt (The Tax Benefits)
By Debt Consolidation, you may be taking some of your non deductible debts and turning it into tax deduct able debt. Every year you get a statement from your lender or lenders explaining how much you paid in interest toward your home loan(s). That interest is tax deduct able The tax benefits from your debt consolidating will be based on how much revolving debt or credit card debt you convert and your overall tax situation.(Contact Us)
Debt Consolidating - Consolidating Debt Summary
Consolidating Debt is an excellent way to save thousands of dollars in interest payments. If you are in a situation where you are struggling to pay your bills and have some equity in your home, it is very important to take a look at your debt consolidating options. You may save your personal credit, thousands of dollars, and even your home itself. (Contact Us)
Debt Consolidations - Consolidate Debt (Example)
MONTHY BILL |
OLD PMT |
NEW PMT |
OLD BALANCE |
NEW BALANCE |
Credit Card #1 = $3,000 |
$150 |
$0 |
$3,000 |
$0 |
Credit Card #2 = $2,500 |
$125 |
$0 |
$2,500 |
$0 |
Credit Card #3 = $1000 |
$65 |
$0 |
$1,000 |
$0 |
Credit Card #4 = $5000 |
$200 |
$0 |
$5,000 |
$0 |
Student Loan Balance = $10,000 |
$150 |
$0 |
$10,000 |
$0 |
Auto Loan Balance = $13,500 |
$300 |
$0 |
$13,500 |
$0 |
Original Home Loan $150K, 6%, 30-yr |
$900 |
$0 |
$150,000 |
$0 |
New Home Loan $185K, 6%, 30-yr |
$0 |
$1,110 |
$0 |
$185,000 |
TOTALS |
$1890 |
$1,110 |
$185,000 |
$185,000 |
| NET RESULT |
SAVE $780/MONTH |
In the Debt Consolidation scenerio above, you have lowered your monthly payment by $780 and given yourself an additional tax deduction of $2,100 a year which could save you even more.
