Q. Will a debt consolidation loan raise my credit score?
A. If you pay your monthly payments on time, your credit score is more than likely going to be raised.
Q. Are debt consolidation loans tax deductible?
A. The interest on a debt consolidation loan is in some cases tax deductible. This is similar to home equity loans in that the interest on the home mortgage is tax deductible up to the first 100,000.
Q. Can I make payments early to pay off my debt consolidation loan faster?
A. Absolutely, we encourage our customers to pay off as much as they would like in a monthly period.
Q. What are the similarities and differences between home equity loans and debt consolidation loans?
A. Home equity loans and debt consolidation loans are legally quite similar in that they are both secure loans on your house. In that sense, they are both secured loans, which allow for a lower interest rate than unsecured loans.
Q. What if I don't own a house or I do not want to put down my house on the loan. Can I still receive a debt consolidation loan?
A. Unfortunately without collateral, the only other option is an unsecured personal loan. This will have a much higher interest rate, and will most likely require you to have an excellent credit rating.
Q. How do I avoid falling back into debt after receiving a Debt Consolidation loan?
A. Look back to how you originally got into debt. If it was due to high credit card use, cut up the credit cards, and do not take up new ones. Use a debit card or a secured credit card, so that the only money you can spend is the money you already have.
Q. What is 125% LTV?
A. This is a loan that allows you to borrow 25% more than your home is worth. This loan has higher interest rates, and only people with excellent credit are eligible. |
