Debt consolidation is a popular option for qualified home owners. By combining multiple higher interest rate payments into one lower interest rate payment, the home owner is able to breath a little bit easier each month. The A Plus Mortgage team has helped many financially burdened home owners find the right debt consolidation solution and we’d like the opportunity to do the same for you.
There are many benefits of a debt consolidation:
- Eliminate or reduce past interest and penalty:
If a consumer borrowed $2,000 five years ago they may now owe thousands more than the original debt. A debt consolidation program usually eliminates accrued interest and penalty charges resulting in much lower liability to the borrower.
- Eliminate credit card balances:
The average consumer uses up to five credit cards and pay separate bills every month for each. With an effective debt consolidation program all the account balances will be paid off and combined into one single lower interest payment making it much easier to manage.
- Reduce average interest rate owed:
With five credit cards, the highest interest rate may be 20% or higher. When consolidated the new combined interest rate will usually be much lower. For example, the new account might have an interest rate of just 8% thereby reducing the monthly payment significantly. Additionally, the debt consolidation program interest paid may potentially be claimed on year end tax returns reducing annual tax liability. All borrowers should consult with a certified public accountant or tax adviser before deciding on a debt consolidation program that’s right for their tax situation.
- Become debt free faster:
In many instances, it might take ten, fifteen or more years to overcome an existing deficit situation. However, with a debt consolidation loan one can usually become debt free in a much shorter period of time. Simply put, the lower debt consolidation payment allows borrowers to apply more of their monthly payment toward paying down the principle balance. In addition, eliminating higher interest credit line balances will usually improve credit scores and remove some stress from life.
Call A Plus Mortgage today and we can give you an idea how we may be able to help lower your monthly payments, stop creditor harassment and consolidate your bills into one lower payment.
“We have been downsizing for retirement over the past three years. David helped us refinance our mortgage to pay off bills without raising our new mortgage payment very much. Now we have a better tax benefit and “left-over” money to save for the future that was being eaten up in debt before. I would recommend this solution to anyone looking for ways to have a more worry-free retirement.” – Corrine W. from Colorado Springs