Most financial advisors recommend consolidating debt through a 2nd mortgage
, debt consolidation, personal loan, HELOC
or credit card debt settlement program, as it eliminates adjustable rate interest and reduces monthly payments.
Why Loans to Consolidate Credit Card Debt Are So Popular
Nationwide provides an introduction to financial professionals that assist borrowers with credit card debt consolidation loans with high LTV second mortgages and fixed-rate refinancing to achieve lower monthly payments and facilitate debt reduction. According to economic reports, the average household of homeowners carries between $18,000 and $25,000 in credit card debt each month.
Potential Risks with Consolidating Credit Card Debt with a Mortgage
Consolidating credit card debt into a home equity loan or 1st mortgage can pose a potential risk to your home, because these debt consolidation mortgages are considered secured loans. Even if you can effectively handle your mortgage payment, combining credit card balances with your mortgage may have adverse consequences if you continue accumulating debt on your credit cards. It might be advisable to explore assistance from nonprofit credit counseling to manage and settle your credit card debt more effectively.
However, leveraging the equity in your home to consolidate credit card debt into your mortgage won’t actually reduces your total debt. While you may decrease the balance on your credit cards, the amount borrowed from your home equity will be incorporated into the new mortgage balance. If you consolidate your credit card balances into a simple interest loa, like a mortgage and you significantly reduce your monthly payments because of lower interest rates, it may be the prudent choice.
Compare Secured and Unsecured Credit Card Debt Relief
To consolidate credit card debt through a secured debt loan, typically, one needs good credit, a stable income, and a certain amount of home equity. Breaking the cycle of high-interest credit card debt can be challenging for many Americans. A Credit Card Debt Consolidation loan from a trusted lender could offer assistance.
Nationwide lenders offer free consultations to homeowners seeking to eliminate credit card debt from their finances. Trained loan officers will assist you in finding a credit card debt relief solution that converts your revolving debt into a fixed interest rate, potentially saving you hundreds of dollars each month.
Is it better to pay down my credit cards with my savings or pay off my credit card debt with a second mortgage?
We recommend that you refinance all revolving debts into simple interest loan that offers tax deductibility like a second mortgage or a home equity loan
. Paying off credit card debt can eliminate future compounding interest from hinder your savings.
Consolidate your loans and credit card debt now!
A debt consolidation loan from Nationwide lenders can merge your debts into a single, low monthly payment, saving you thousands of dollars annually by eliminating compounding interest.
Linda’s Tip for credit card debt consolidation — Ask Linda?
“Wake up homeowners! Personal credit cards don’t have the same tax advantages as a debt consolidation second mortgages have for deducting mortgage interest. You will save money by consolidating credit cards in a secure loan. It is amazing what happens when you eliminate the compounding interest your credit card companies enjoy calculating each month.”
With a Credit Card Debt Consolidation loan, you could consolidate those debts and have one low monthly payment. Potentially, you could save hundreds or thousands of dollars! Before committing to refinancing credit card debt into a secured mortgage, consider the risks first.