For some, debt may be credit cards, a car loan, or maybe a student loan. Some might owe the Internal Revenue Service (IRS) money or they have medical costs they need to pay off. Mortgages might be seen as a solid investment, but in the end it is still debt. If you have thought about consolidating your debt by applying for a debt consolidation loan, do you know what can and can’t be consolidated?
Credit cards are one of the most common reasons people apply for debt consolidation loans. Rather than paying each credit card on its due date, borrowers can make one payment to be disbursed to each creditor they owe.
Student loans are also another item many people would like to consolidate. Student loan debt consolidation is possible, but it is broken down between private and federal student loans. Federal loans may be consolidated through the Department of Education. Consolidating these loans might also provide a change in the interest rate.
Some people may have various loans to cover such as a personal loan, or a small business loan. You can consolidate these as well using a debt consolidation loan.
Another debt consolidation topic is mortgages. Some consumers may actually use their mortgage to consolidate other debt, such as small loans or credit card debt. Homeowners could refinance their mortgage to include non-mortgage debt or take out a second mortgage to consolidate their debt. This type of consolidation differs from a debt consolidation loan but has similar features, such as a monthly payment.
Debt consolidation is a viable option for those who are tired of dealing with multiple credit cards and a calendar full of payment reminders. Consolidating student loans, credit cards, and other debt could help you pay off your debts faster as you’re unlikely to miss payments and you may even get a lower interest rate. AmOne’s trained professional can assist you in finding debt consolidation solutions, and in matching you with credit repair services if you’re interested in achieving a higher credit score as well. Contact AmOne today to get on your way to being debt-free.