The Diamond Blog

Swamped with high-interest credit card bills? Or perhaps you’re looking for a way to regain control over your finances or eliminate the hassle of paying for multiple auto and personal loans each month. If any of this sounds familiar, it’s probably time to consider a low interest, tax-advantaged* debt consolidation loan.

Q: What is a debt consolidation loan??

A: Simply put, a debt consolidation loan is a special mortgage refinance that gives you the ability to pay off high-interest credit card debt, auto loans, personal loans, and other lines of credit by consolidating all of those loans into a single loan with one single low interest loan payment! A debt consolidation mortgage loan is refinancing an existing mortgage and taking cash out to pay-off other bills.

Q: Can I benefit from a debt consolidation loan? ?

A: If you have a large amount of debt and you own or have equity in your home, you are a candidate for a debt consolidation loan.

Q: What are the advantages of a debt consolidation loan??

A: First, you have only one loan payment to make each month. Second, because debt consolidation loans are considered less risky, they generally offer dramatically lower interest rates which will save you money and help you to get out of debt faster. Third, a debt consolidation loan can improve your credit rating by getting those nagging credit card bills paid off. Finally, because a debt consolidation loan is considered a second mortgage, the interest that you pay may be tax-deductible*.

A: Yes. If you’re considering a debt consolidation loan to eliminate credit card debt, after you have gotten the loan and paid off all those bills, resist the temptation to run those balances up again. Try to pay for things in cash until your loan has been paid down.

A: Begin by adding up your debt and checking your current interest rates. Next, contact several lenders and study the various loan options that are available to you. Be sure and verify the length of the loan, the interest rate, and whether it’s fixed or variable. Your loan amount and interest rate will vary depending upon your credit, income, and how much equity is in your home.

If you’re ready to reduce your credit card debt, pay off old bills, and save yourself time and money, now is great time to consider getting a debt consolidation loan.