How to Consolidate Bills Without Taking Out a Second Mortgage
There are numerous ways to consolidate bills and simplify your finances. Homeowners typically consider a second mortgage or home equity loan to pay off debts and improve their credit rating. Unfortunately, not everyone qualifies for a second mortgage. Obtaining one involves having adequate equity and being a homeowner. If you don't qualify, consider other methods of bill consolidation.
Other People Are Reading
Instructions
-
-
1
Transfer balances. Apply for a low-rate credit card and move your existing credit card balances to the new card. Combining your debts at a lower interest rate saves money and helps you pay down debt sooner.
-
2
Consider a debt consolidation loan. If you own your vehicle outright, consider a secured debt consolidation loan and use your car title as collateral for the loan. Lenders allow other types of collateral such as electronics and jewelry.
-
-
3
Refinance your mortgage. Speak with a mortgage lender and discuss refinancing your mortgage and borrowing cash from your equity. Use the cash taken from your equity to pay debts.
-
4
Work with an agency. Use a non-profit debt consolidation agency to obtain a lower interest rate on credit cards and combine all your bills into one low monthly payment.
-
1
Tips & Warnings
Unsecured debt consolidation loans are available to borrowers with good credit ratings. However, these loans typically involve higher rates.
A cash-out mortgage refinance involves applying for a new home loan. This method consist of mortgage-related fees such as closing costs, application fees and appraisal. Cash-out refinances tend to increase your mortgage balance and monthly payment.
References
Resources
- Photo Credit patriot credit card image by Ray Kasprzak from Fotolia.com
