Debt Relief From Debt Consolidation by:Jakob Jelling
If you are up to your neck in debt, there may seem like there is no relief in sight
. In fact this is not necessarily the truth. There are ways to take all of your stifling bills and roll them up into one neat package by using debt consolidation in two very popular forms Home Equity Loans, Refinancing Loans, and a Consolidation Credit Card. All of these instruments provide the debtor with one thing "relief" from the current debt by shrinking it down to a single manageable debt.Using home equity to consolidate debts
One of the popular methods of debt consolidation today is the Home Equity Loan. What happens is that the debt is extinguished using the equity from a homeowner's home. A loan is created outside of the mortgage in order to satisfy the debts. Should the homeowner default on the loan, their house is in jeopardy of being foreclosed upon if that loan is not satisfied with a specified amount of time.
Refinancing loans
People often consume the debt by rolling it into a new mortgage. This way the house costs more money to the borrower, but the debt is extinguished at close and the debt is neatly rolled away into the mortgage securely. Upon settlement of the loan, the debts are paid in full and satisfied. The clock on the mortgage is reset to day one.
Credit card consolidation
A low interest credit card is offered to the borrower to include any outstanding credit and loan balances. The interest rate is a low fixed rate for a period of up to one year, upon the year's end it will resume at its normal rate. Upon acceptance and terms the account should be closed once paid in full and payments be made directly to the new credit card provider. Some people have been able to master paying off one credit card with another to keep the debt revolving and interest rates low. Some people fail to close out the previous creditors account and run them back up again as well.
All three of these options provide solid relief for the debt and help them reconstruct and manage their debt better.
By Jakob Jelling
http://www.cashbazar.com
About the author
Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate. Internet & Mortgage Calculations by:Jakob Jelling Obtain a Car Loan No Longer Than Necessary by:Jakob Jelling The Future Of Banking - Bank Online by:Jakob Jelling Credit Establishment 101 by:Jakob Jelling Home loan applications made easy by:Jakob Jelling Lower Your Credit Card Interest Rate Now! by:Jakob Jelling Refinancing your home - How and why? by:Jakob Jelling Financial Services Marketing Insights: A Marketing Compass by:Jay Nagdeman Student Home Purchase Plan by:John Carle & Sharon Gregresh Nine Questions To Ask Yourself Before You Head To The Office Party by:Lydia Ramsey FOCUS on Your Business Program. Power of FOCUS. by:Raymond Johnsen Slash Your Phone Bill in Half Now! by:Reginal Smith A Great Way to Do PR by:Robert A. Kelly