Debt Consolidation Loan

Consolidating all your debt into one monthly bill may seem like a great way to take control of your debt, but we urge you to be very careful.  There is a very high chance that you could end up in even deeper debt.

You may be able to lower your cost of credit by consolidating your debt through a second mortgage or a home equity line of credit.  Remember that these loans require you to put up your home as collateral.  If you can't make the payments, or if your payments are late, you could lose your home.  Also, the costs of debt consolidation loans can add up.  In addition to interest on the loans, you may have to pay "points" - with one point equal to one percent of the amount you borrow.  Still, these loans may provide certain tax advantages that are not available with other kinds of credit and credit cards.  Here are some more facts about debt consolidation:

  • Payback can take as long as 10 to 20 years depending on debt balance and your ability to pay
  • You pay back the full amount of credit card balances, plus interest and any fees
  • These loans require ownership of a home or a pledge of collateral
  • Defaulting on a Home Equity Loan could cause you to lose your home or the collateral you pledged
  • A transaction fee is usually required upon closing or it is built into the interest rates
  • You must qualify for debt consolidation loans. And, those who qualify, are usually not debt settlement candidates

Copyright © 2008 Heritage Debt Relief, LLC. All Rights Reserved.
7500 Rialto Boulevard, Suite 170, Austin, TX 78735

*Individual results of the program may vary and are dependent upon several factors including individual circumstances, creditors' willingness to settle, successful completion of program and ability to save funds. Heritage Debt Relief does not assume or pay any debt, nor does it provide legal advice or offer credit repair. Program not available in all states. Read and understand contract terms before enrolling.