Mortgage debt consolidating loan companies
Let’s say you have ,000 in unsecured debt, including a two-year loan for ,000 at 12%, and a four-year loan for ,000 at 10%.Your monthly payment on the first loan is 7, and the payment on the second one is 3. The debt consolidation company says they can lower your payment to 0 per month and your interest rate to 9% by negotiating with your creditors and rolling the loans together into one. Who wouldn’t want to pay 0 less per month in payments?So if you stay in debt longer, you get a lower payment, but then you pay the lender more.
Getting out of debt isn’t quick or easy, but it’s the first step to achieving lasting financial health. It simply means you’re taking out one loan to pay off a bunch of loans—or consolidating the debt to one payment.
To come out ahead, you need to find a consolidation loan with a low interest rate and a reasonable term.