Low Interest Debt Consolidation Loans - Getting
A Low Rate
by: Carrie Reeder
Low interest debt consolidation loans can help
you pay off your debt sooner. For the lowest rates use your home equity to
secure a loan. You can also find personal loans that will reduce your interest
payments. Otherwise, transfer your credit balance to a new credit card account
that offers 0% interest on transfers.
Home Equity Loans
Home equity loans offer low interest rates because
they are secured with your property, reducing the chances of you defaulting.
You can opt to cash out your equity by refinancing or applying for a second
mortgage or line of
credit.
Refinancing can cost thousands in upfront fees, buy they can offer you overall
lower payments. Second mortgages and lines of credit usually cost zero to
a couple of hundred of dollars to open, but their rates are higher than a
traditional mortgage.
|
Personal Loans
Personal loans offered through banks and other
financial lenders can also help you consolidate debt. These types of loans
are based on your credit score and cash assets. Since these are unsecured
loans, rates are higher. However, when compared to credit card rates, they
are significantly lower.
Credit Card Transfers
You can also open a credit card to take advantage
of 0% or low interest rates on transfer balances. These types of offers are
introductory, so expect rates to jump in six to twelve months. In the meantime,
you can start paying down debt while rates are low. At the end of the
introductory period, you can open another account or look for a long term
loan with low rates.
While transfers are attractive, they do carry
risks. You should read the terms to be aware of any fees charged for transfers.
Also, guard against racking up more debt by closing old accounts. This will
also help your credit score in the long term.
|
Shopping
Loan Rates
No matter what type of loan you choose to use
to consolidate your debt, be sure to research rates. By comparing offers,
you can save thousands in interest charges. Most lenders post their rates
online for easy access. Be sure to read their terms as well to make sure
you don’t get caught on fees.
|
|
our links
OUR
ARTICLES
DEBT
BUSTER TECHNIQUE
DEBT
GUIDE 2006
google links
How To Get Rid
Of Credit Card Debt
|
