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What the Federal Trade Commission
says about: Secured & Unsecured Debt Consolidation Loans
You may be able to lower your cost of credit by consolidating your debt through a second mortgage or a home equity line of credit. Remember that these loans require you to put up your home as collateral. If you can’t make the payments — or if your payments are late — you could lose your home.
What’s more, the costs of consolidation loans can add up. In addition to interest on the loans, you may have to pay “points,” with one point equal to one percent of the amount you borrow. Still, these loans may provide certain tax advantages that are not available with other kinds of credit. |
Lawgistix’s Opinion on
Secured & Unsecured
Debt Consolidation Loans
We have referred many Members to mortgage companies to "cash-out" refinance their home prior to starting debt negotiations and debt settlement. The funds can then be used to pay off most creditors and collectors at substantially less than their current balances. The result of paying off most creditors and collectors is then better, as the Member has no unsecured debt, and money left over for savings and/or investments.
Unsecured debt consolidation loans are normally only approved for consumers with very high credit scores (700+). Chances are, if a consumer has a lot of credit card debt, their credit score has already dipped below the number required for approval. These interest rates on unsecured loans are much higher as they carry an elevated level of risk for the lender (no collateral).
For more information about Debt Consolidation Loans compared to Lawgistix Debt Settlement please call us at
1.800.535.5179 . |
