subject: Is A Debt Consolidation Agency A Way To Go For Eliminating My Debts [print this page] Author: Hector Milla Author: Hector Milla
Are you wondering if a debt consolidation loan is the way to go to get yourself out of debt? There are several advantages of taking one out and there are also a few disadvantages. One advantage is you only have one single payment to make each month instead of various ones on several debts. A loan will also lower your interest rates. Most of these loans are secured with a second mortgage on your home so the interest rate is much lower than that of credit cards. Paula de la Torre Editor of the "Best Debt Consolidation Companies" website -- http://www.BestDebtConsolidationCompanies.net -- pointed out; You also often get a tax break when you take out one of these loans because you have switched the debt over to your house and the interest becomes tax deductable. Some consolidation companies will "bargain" with your creditors to reduce your late fees or penalties also. This could also save you a good amount of money The major disadvantage to these loans is that once you see your credit report will all those paid off charge cards and loans you're tempted to go right back out and run up the accounts again. You have to be able to control your addiction it that kind of spending or you will never get out of debt and now you will also risk losing your home. Think about it and use your common sense. Another disadvantage is that sometimes the new loan payment is still too high for some people. If you find this is the case, try to take out the loan for as long as possible. You will end up paying more in interest but that interest is tax deductible if it is a home loan P. de la Torre added. Sometimes though it can also be difficult to get one of these loans because you need to own a substantial stake in the property you are trying to get the second mortgage (or refinance) on. You will also have to have enough monthly income to qualify for the loan. Check with several agencies before you decide to work with one. Some give better rates etc. than others do. Further information about trusted and reputable companies for debt consolidation by visiting; http://www.BestDebtConsolidationCompanies.netAbout the Author:
Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.
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