Mortgage Man Mark Blog

Struggling with debt can be tough, especially when you have many debts with high interest rates. Banks make it simple to obtain a $50,000 credit card, while securing a line of credit is not as straightforward. This is because credit cards carry a 20% interest rate, whereas HELOC or mortgage rates are below 10%. A debt consolidation loan can help by merging these debts into one loan with a lower interest rate. This makes it easier to pay back and often lowers your monthly payments, making your finances easier to handle.

How to get started with debt consolidation

Before you think about debt consolidation, it’s essential to look closely at your financial situation to ensure this solution is the right choice for you. Check your income, expenses, debts, and assets to see how healthy your finances are.

Start by noting your monthly income from all sources. Keep track of your spending to know where your money goes. Divide your expenses into two groups: essential ones (like housing, food, and transportation) and discretionary ones, like entertainment and dining out.

This assessment allows you to see your debt-to-income ratio. It can also help you find areas where you can save money, which is important for getting debt relief through consolidation. Knowing your finances clearly will help you make the best choice.

Debt consolidation allows you to take control of your debt and reduce the interest you're currently paying on it.

It's important to understand that debt consolidation does not make your debt disappear. It simply reorganizes it. For example, if you have a lot of credit card debt, a consolidation loan can change all of that into one easy payment. This is especially helpful for people who find it hard to keep up with due dates or different interest rates.

You can choose methods like personal loans, home equity, or credit card balance transfers. It is important to set realistic payment goals and make a solid budget plan. Always compare interest rates, read the details, and work with trustworthy credit advisors. 

Mortgage Man Mark can help you save money by securing the lowest interest rate. We work for you. After assessing your financial situation, we can explore all the reputable options available. We will work to lower interest rates, remove fees and find terms that match your individual situation. In addition, we can provide advice on budgeting, managing money, and setup a beneficial payment schedule to help you take charge of your finances again.

Contact us today to discuss your situation.