When implemented wisely, a home equity loan, also called a debt consolidation program loan, provides almost instantaneous debt relief for the homeowner facing a financial crisis. At DRO, even those clients with a bad credit rating can frequently still take advantage of a home equity loan. That being said, many clients also contact DRO after they’ve completely exhausted the equity in their home. In cases like these, DRO is able to offer an alternative debt reduction plan that can help a client reduce monthly bills and also eliminate debt.
- Can improve credit rating and facilitate access to additional credit.
- Most immediate of all solutions for retiring other debt and receiving cash.
- Can significantly lower the overall cost of monthly bills, as well as credit card debt.
- Creates new and potentially long-term debt by converting existing unsecured debt into new secured debt.
- Repeated use of the equity option to pay down other debt negates equity gains that can only be reclaimed over time.
While consumers have a choice of several types of debt consolidation program loans and debt help options, they should exercise EXTREME CAUTION before entering into an unsecured debt consolidation loan. In the absence of collateral such as a home or other investment, such loans frequently charge exorbitant interest rates or hamstring consumers with accelerated interest clauses. Be sure to read the loan agreement carefully if you put up securities or bank accounts as the loan collateral, since loans of this type often permit lenders to liquidate these accounts if they fall below a certain value.
Debt consolidation is just one of many forms of debt help. You may want to consider these other debt relief options, too: Debt Management, Debt Settlement/Negotiation, Debt Reduction, Consumer Credit Counseling and Bankruptcy.
