If used judiciously, a home equity loan, or debt consolidation program loan, can be an excellent and immediate solution to paying off your debts when financial emergencies arise. At New Leaf Debt we can often help clients, even with very poor credit, obtain an equity loan. Too often clients come to us after they've tapped out their home equity. In these situations we utilize other debt relief programs to lower their monthly bills and eliminate debt.
- Can improve your credit and access to more.
- Is the most immediate solution for getting rid of other debt and also for taking out cash.
- Can lower the total cost of your monthly bills dramatically - including credit card debt.
- Turns your unsecured debt into secured debt by creating another debt that is often around for a very long time.
- Habitually using equity to pay off other debt deprives you of equity gains that only time can re-create.
There are other forms of debt consolidation program loans and debt help options, but be VERY CAREFUL before committing to an unsecured consolidation loan. These loans often charge very high interest rates or have accelerated interest clauses if they are not collateralized by a home or liquid investment. Read all the fine print when using your bank account or securities as collateral, because these loans usually allow the lender to liquidate your account if it falls below a set value.
Debt consolidation is only one form of debt help. Some other debt relief options include: Debt Management, Debt Settlement/Negotiation, Debt Reduction, Consumer Credit Counseling and Bankruptcy.
