Debt Relief: Debt and Credit Card Consolidation

Many people choose a debt consolidation loan. Sometimes they consolidate everything into a personal loan or take out a home equity loan.

It is inviting to trade a 20% credit card interest rate for a low, and often tax-deductible, home mortgage interest rate. But most people don’t realize that they are trading an unsecured debt for a secured debt.

Debt Consolidation Pros and Cons

Home equity loans aren’t eligible for debt settlement and if you fall behind on your payments, you risk losing your home to foreclosure. Your home is the collateral on your debt. However, if you default on a credit card loan, creditors can hassle you, but they can’t take your home. And for most people, the consolidation loan provides only temporary relief.

According to a study by Atlanta research firm Brittan Associates, nearly two-thirds of the people who borrowed against their home equity to pay off credit cards had run up more credit card debt within two years.

Alternative to Debt Consolidation

Common Cents Credit Solution offers an alternative to debt consolidation. Don’t run the risk of running up even more credit card debt! Call 877-332-8785 to talk to a debt specialist about alternatives.