Start Mortgage home re financing mortgage debt consolidating

Mortgage home re financing mortgage debt consolidating

A debt consolidation mortgage could give you greater control over your finances.

Many lenders specifically offer loans for this purpose.

Of course, this approach requires that you have fairly good credit - if your FICO credit score is in the mid-600s or lower, you may have trouble getting such a loan from a bank or credit union.

This could also reduce the amount you pay towards your debts each month, although it could also increase the total interest to be paid.

That's particularly helpful if you can combine it with a lower interest rate as well. Basically, you borrow a single, lump sum of cash that's used to pay off all your other debts.

There may be other wrinkles involved - for example, some of your creditors may be willing to write off part of your debt in return for an immediate payoff - but the key thing is that you're simplifying your finances by exchanging many smaller debt obligations for a single bill to be paid every month.

What types of debts can be covered by a debt consolidation?

You can also seek to take out a personal, unsecured loan on your own or try to negotiate some sort of arrangement with your creditors. The simplest, and most straightforward way to consolidate your debts is to simply to take out a new loan from your bank or credit union and use that to pay off the various bills you may have.