One is to consolidate all their credit card payments onto one new credit card – which can be a good idea if the card charges little or no interest for a period of time – or utilize an existing credit card's balance transfer feature (especially if it's offering a special promotion on the transaction).Home equity loans or home equity lines of credit are another form of consolidation sought by some people, as the interest on this type of loan is deductible for borrowers taxpayers who itemize their deductions.Consumers can use debt consolidation as a tool to deal with student loan debt, credit card debt and other types of debt.
A Federal Housing Administration (FHA) loan is a popular option for home buyers with lower qualifying income, low credit scores or a lack of credit history.
With a 30 year fixed-rate mortgage, it is easy to set your budget because your total payment of principle and interest remain unchanged for the entire term of the loan. An adjustable rate mortgage, also referred to as an ARM or variable rate, is a loan option with a low introductory rate.
The interest rate with this mortgage will adjust over time (typically 5 to 7 years).
Consolidated credit companies, like credit counseling agencies, usually point consumers at debt-relief options like a debt management program, debt settlement, a debt consolidation loan and, in extreme situations, bankruptcy.
With credit consolidation, you take out a new loan and use it to pay off smaller loans.