If you’re struggling to get out of debt and can’t negotiate a lower interest rate with your credit card or credit loan companies, debt consolidation could be the answer. Millions of people in Virginia and across the country suffer each year with debt and feel as though no one can help them. However, if you’re having serious trouble paying off your credit debt, it’s a good idea to research debt consolidation mortgages to see if they fit your specific needs.

What is Debt Consolidation?

Debt consolidation is a form of refinancing all of your debts into one manageable loan. Therefore, instead of paying multiple loans with varying payments, you only have to pay one. Even better, debt consolidation combines everything at the lowest interest rate, relieving your monthly financial burden. When it comes to refinancing your mortgage, consolidation could save you significantly more money per month while making it easier to pay off your debt over time.

How Debt Consolidation Mortgages Can Help

If you have ample equity in your home, it’s possible to lower the monthly payments on your personal loans, credit card debts and student loans. However, just because you can use the equity doesn’t mean that you should do it. You should view your home’s equity as an untouchable savings account for use only in dire situations. By consolidating both your current mortgage and your credit debt into a new consolidation debt mortgage loan, it’s possible to reduce your overall monthly payments by the thousands.

Who’s the Best Candidate for Debt Consolidation?

Debt consolidation mortgages aren’t for people who have a habit of running up their credit cards or continuously making poor financial decisions. They’re best suited for people who have had major business or medical expenses. However, debt consolidation can also help people who have found themselves with much higher credit card or loan payments than they can handle.

When to Consider Debt Consolidation Mortgages?

Because the equity in your home is a priceless commodity, you should only use it when it’s absolutely necessary, such as if you’re paying for tuition or recouping your budget after suffering a major illness or a disaster. It’s best to use debt consolidation mortgages when you’ve exhausted every possibility for reducing your credit debts.

Both standard and debt consolidation mortgages have similar requirements; however, there’s a minimum equity requirement for consolidation. Those with poor credit may find it more difficult to use their equity as a way to get a debt consolidation mortgage. If you want to pursue the maximum loan amount, you’ll need a higher credit score.

Get Personalized Advice From First Mortgage Solutions

If you’re thinking about consolidating your loans and reducing your monthly payments, First Mortgage Solutions can get you started with a debt consolidation mortgage. We’ve helped residents and business owners from California to Virginia consolidate their debts and get their finances on track. We’ll walk you through the process and provide you with useful information so that you can make an informed financial decision that puts you on the best path to debt recovery.

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