Consolidating home and auto loans
Consolidation isn’t a silver bullet for debt problems.
It doesn’t address excessive spending habits that create debt in the first place.
You might qualify for an unsecured debt consolidation loan at 7% — a significantly lower interest rate.
If you’re dealing with a manageable amount of debt and just want to reorganize multiple bills with different interest rates, payments and due dates, debt consolidation is a sound approach you can tackle on your own.
Try a do-it-yourself debt payoff method instead, such as the debt snowball or debt avalanche.
If the total of your debts is more than half your income, and the calculator above reveals that debt consolidation is not your best option, you’re better off seeking debt relief than treading water.
Third, interest paid on mortgage debt, even from a debt consolidation, is tax-deductible up to certain limits – so that can save you money as well.
A Mortgage Debt Consolidation Loan can be one of two types: a home equity loan/line of credit, or a cash-out refinance.
Search for consolidating home and auto loans:
It’s also not the solution if you’re overwhelmed by debt and have no hope of paying it off even with reduced payments.