Consolidating your debt your mortgage horse people dating sites
and personal loans – can be challenging to manage and pay down.
The high-interest rate tacked onto many types of loans makes it very hard just to pay the interest portion of the debt, let alone the principal.
The amount of interest paid on a ,000 debt at 4% is a lot less than at 20%, for instance.
You could be saving a great deal of money every month by paying a much lower rate on the same debt amount, helping you pay it off much faster.
If you currently own a home that has a certain amount of equity built up in it, you may have a solid source to help you better manage your debt.
Generally, you’ll end up paying less each month than you do now, paying all the bills separately.
Current homeowners aren’t the only ones who are able to take advantage of debt consolidation using their mortgages.
First-time buyers can also tap into the benefits that debt consolidation has to offer by rolling their debts into a new mortgage.
Mortgages typically come with much lower interest rates compared to other types of debt, like personal installment loans, payday loans, and Using your new mortgage for your first home to consolidate your high-interest debt can help you effectively reduce the amount of interest paid every month and eventually save you a lot of money.
Not only that, but you may be able to deduct your mortgage interest on your taxes, which you cannot do with many other types of interest charges.