You need to start by understanding that debt is not a way of life and does not have to be your norm. The credit card companies and finance companies would love for us all to believe this so that they can continue to make their huge profits from us, but it is not true. Debt free is the only way of life and you need to experience it.Here are a few situations that would be good for a debt consolidation loan.
Situation #1 – If you own your home, there is plenty of equity in it, and you have over $10,000 in unsecured, high interest debt. To be considered high interest it must be twice that of your mortgage rate, and you also need to have at least 30% equity in your home for it to be enough.This situation is perfect for a fixed rate refinance to cover the unsecured debts.
Situation #2 – If you have over $5,000 in unsecured debt that has an interest rate of over 15%. This situation is perfect for a debt consolidation loan against a paid off car or just without collateral.
Situation #3 – You are a new college graduate with a ton of student loan debt. It is much easier to manage your student loans once you consolidate them and you can usually get a lower interest rate anyway.Here are a few situations where a debt consolidation program will work best.
Situation #1 – If you own your home, have very little equity, and have over $10,000 in unsecured, high interest debt. Without the equity in your home, a loan is out of the question and a debt consolidation program is best. You do not need a mortgage that is larger than the value of your home.
Situation #2 – If you have over $20,000 in unsecured debt. If this is you, then you need to consult a debt consolidation program right away and get working on this debt.
Click Here Now to discover how to use Debt Consolidation to get to a better Financial Place!
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