One strong reason why you should choose to consolidate your debts is that you can get lower interest rates and, even though you will have a fixed period in which you have to pay your debts, you will be able to get all of your debts cleared sooner and with less hassle.
In order to make this process effective you will have to take into account all the options that are available for you and then choose the one that best suits you.
You should start by asking your money dealer whether you are eligible for a consolidation loan or not.
More exactly, you should ask them about the requirements regarding the income and the credit score needed for an unsecured consolidation loan.
However, if you are eligible for a secured consolidation loan, you should opt for that and ask your bank or money agency to give you some information about what kind of collateral they usually accept for such a loan.
If you are eligible for a secured loan then you will benefit from certain tax deductions, if you choose to secure the debt with a real property.
If your bank or money dealer tells you that you are not eligible for one of the two mentioned loans, then you can to hire a home appraisal professional and asses your equity.
The home appraisal can also give you a second opinion on whether you are eligible for an equity loan for your home that can consolidate your debts.
If this professional's expertise concludes that you are eligible for an equity loan, then one solution would be to use these funds to pay your balances and then simply repay your home equity lender.
If you have a good credit card history then you also have the option of consolidating your debts by acquiring a low rate credit card.
However, make sure that you choose to open a credit card that has a balance transfer option included and make sure that you do not have to secure the debts you have against your home, if you choose this option.
There are numerous other ways to consolidate your debts like for example, a second mortgage, refinancing your original mortgage or transferring your balances to a single credit card.
However, make sure that you take a look at the final numbers.
If, in the end, your consolidation loan will cost more than the one you currently have, then maybe it is a better idea to stick to the one you have right now.
In order to make this process effective you will have to take into account all the options that are available for you and then choose the one that best suits you.
You should start by asking your money dealer whether you are eligible for a consolidation loan or not.
More exactly, you should ask them about the requirements regarding the income and the credit score needed for an unsecured consolidation loan.
However, if you are eligible for a secured consolidation loan, you should opt for that and ask your bank or money agency to give you some information about what kind of collateral they usually accept for such a loan.
If you are eligible for a secured loan then you will benefit from certain tax deductions, if you choose to secure the debt with a real property.
If your bank or money dealer tells you that you are not eligible for one of the two mentioned loans, then you can to hire a home appraisal professional and asses your equity.
The home appraisal can also give you a second opinion on whether you are eligible for an equity loan for your home that can consolidate your debts.
If this professional's expertise concludes that you are eligible for an equity loan, then one solution would be to use these funds to pay your balances and then simply repay your home equity lender.
If you have a good credit card history then you also have the option of consolidating your debts by acquiring a low rate credit card.
However, make sure that you choose to open a credit card that has a balance transfer option included and make sure that you do not have to secure the debts you have against your home, if you choose this option.
There are numerous other ways to consolidate your debts like for example, a second mortgage, refinancing your original mortgage or transferring your balances to a single credit card.
However, make sure that you take a look at the final numbers.
If, in the end, your consolidation loan will cost more than the one you currently have, then maybe it is a better idea to stick to the one you have right now.