Many homeowners benefit from debt consolidation loans and want to use the equity in their home to pay off high interest rate credit cards or other debts and make one easy payment per month. Doing this can save homeowners thousands of dollars. Today’s interest rates are very low and this can be a smart option for many people. At HQ we find our clients the best debt consolidation loans available that meet our clients’ current and future needs. Many home owners need assistance reducing their financial debt and below are some of the key benefits of debt consolidation.
Lower monthly payments
Debt consolidation means lowering your monthly payments and you may find yourself paying a lower overall interest rate than the combined rates on all your debts. You could also extend your term to reduce your monthly payments even further. Remember, even if you do extend your term, you can always pay more than the minimum monthly payment at any time. This amount would go directly on to your principle.
Save on credit card interest
Debt consolidation means including all of your outstanding credit card balances and you could reduce your interest rate quite substantially, compared to average rates charged by credit cards.
Leverage the equity in your home to save even more
Using the equity in your home to secure your consolidated debt will typically mean an even lower interest rate. This option could make sense for many people.
One monthly payment
Debt consolidation can greatly simplify your financial life. By combining all your monthly payments into one, this minimizes confusing multiple due dates and late fees\interest.
Have your debt in one place
Centralizing your debt at one financial institution will save you time and reduce the stress of paying multiple creditors on a monthly basis.