Debt Consolidation

Hi Ryan

Welcome to the forums. credit card debts are unsecured debts and hence it does not require any mortgage for debt consolidation.

Feel free to get started with the debt consolidation program without putting anything on mortgage.

Regards
Roxette

[quote=Ryan]Do you require a mortgage to consolidate credit card debit?[/quote]

Hi Ryan,

Well actually there are two ways that you can consolidate.

You can consolidate with a loan. In that case, you would need collateral or assets to secure the consolidation loan. With consolidation loans, you would get a loan that would have a very low interest rate. You would use this large sum of credit to pay of all of your debts. The benefit of this would be the fact that you would be using this low interest loan to pay off your varying debts with varying rates of high interest.

So theoretically, you would be saving money in regards to interest. So if you would like to take this route, then yes, you would require collateral such as a mortgage in order to obtain this sort of loan.

There is also another way to consolidate without using a consolidation loan. If you have a steady income, this method would be beneficial because you would not use a loan to pay for another loan. Because, with this method, the consolidation company would simply negotiate with your creditors in order to obtain lower interest rates for your debts.

So essentially, you would be able to lower the interest on your debts and effectively decrease your monthly payments. This method is something that you should consider if you are tired of paying for loans and you just want to get rid of all of your credit debt once and for all.