| You have seen debt consolidation
loans advertised and they may look like a good idea.
The way these debt consolidation loans work is that you are
given a loan against your property and you use this money to
pay off high interest credit cards. Typically, you are
required to use the equity in your house as collateral. The
problem is that most people who are in deep credit card debt
do not have equity in their homes and the ones that do are
concerned about taking on more debt.
For a FREE CONSOLIDATION QUOTE
-
click here!
In order to reduce your debt, you need less credit not
more. Increasing debt with a debt consolidation loan, or,
mortgaging your house is typically financial suicide. Many
people report that re-financing with a credit card
consolidation loan or a second mortgage pushed them over the
financial brink. Under these circumstances, the loan or
mortgage you do obtain (if you qualify) will be at a very
high interest, and though you will appear to be making
progress, you will only be digging yourself in deeper in
debt.
A common myth is that debt consolidation loans are tax
deductible. This is only partially true. Interest paid on
mortgages that exceed the value of the house, used to repay
credit cards or personal loans (called unsecured consumer
debt) is not tax deductible.
The best way out of high interest credit card debt is
through bill consolidation - debt consolidation.
For a free - no obligation - debt consolidation quote,
click here! |
