Consolidating Debt with a Home Loan

Trying to juggle multiple debts with high interest rates can become exhausting, not to mention expensive. Remembering which creditor to pay on which day of the month is overwhelming when you have more than a few debts. More than likely, if you are carrying several debts, you are also probably paying higher interest rates than you need to be. With Sheri's debt consolidation service, you take out one, lower-interest loan to pay off your many, high-interest debts. In the end, this saves you the trouble of having dozens of creditors and also saves you time and money with a single loan with a lower interest rate.

Debt consolidation can take many forms. Traditionally, it has involved taking many, unsecured debts (such as credit card debts) and combining them into a single, secured debt. To do this, you need to secure the loan against a piece of collateral, like a house or a car. You may also be able to convert unsecured loans into a single unsecured loan with a lower interest rate. You might have also heard of people consolidating their debt with zero-percent APR credit cards. This is a possibility, but it is most often a quick fix that does not work for everyone. Sheri can offer you a debt consolidation loan that will give you a lower interest rate that will last longer than these introductory credit card offers.

Frequently Asked Questions about Debt Consolidation

By consolidating my debt, aren't I just adding another debt to my plate?

To manage several high-interest debts owed to multiple creditors costs time, money, and effort. By combining all your debts into a manageable package with a reasonable interest rate, debt consolidation makes paying off your debts easier. Debt consolidation does involve taking out a loan, but that loan will pay off all your other debts. You then make easy monthly payments toward your single remaining debt.

Will debt consolidation hurt my credit score?

Debt consolidation does not negatively affect your credit. The only thing it might do is make it difficult to qualify for new credit.

Is debt consolidation advisable for me?

Debt consolidation is especially recommended for those with many credit card debts. In general, though, debt consolidation is advisable when you find yourself paying high-interest debts to many creditors. This is not necessarily limited to credit card debt.

Will debt consolidation reduce my debt?

Ultimately, yes, because debt consolidation can drastically reduce the interest rates you are paying. By devoting less of your money toward interest and more toward the principal, you will be able to pay off your debt with less money, faster than you otherwise would have.