You’ve probably heard the news stories that say you have to have a near perfect credit rating these days if you want to qualify for any type of loan or mortgage. And if you’re one of the millions of people concerned about elimination of your credit card debt the thought of getting a bill consolidation loan probably flashed through your mind for a second and then you forgot about it because your credit rating is already in the toilet.
One of the main reasons it’s difficult to get a bill consolidation loan for the elimination of credit card debt is because most people generally use their cards for things like clothing, trips, food and gasoline – none of which can be considered assets that the bank or lender could use for collateral. However, if you’re a homeowner, you may be able to qualify for that consolidation loan, even if your credit rating is less than stellar.
Let’s say you have $25,000 in accumulated plastics debt, spread out over 5 or 6 cards, and your total monthly payments are $800. And let’s say you have $25,000 in equity in your home. Refinancing your home will give you the money you need for the elimination of your credit card debt yet it will only raise your monthly mortgage payment by less than $200. Not only have you erased your debt but you’ve improved your debt to income ratio – which also makes your credit rating look better. Most lenders would be happy to make a loan like this.
Before taking any major step to eliminate your credit card debt your best course of action is to consult with a reputable credit debt reduction service. They can help you look at all the different options available to you and make the best decision for your own personal financial future.