Professional Debt Consolidation Service

A professional debt consolidation service is one type of debt relief help that can reduce your interest rates and monthly payments for a certain fee. Unlike other types of debt relief help, debt consolidation does not require you to take out a loan or acquire more debt with the intent of becoming debt free. After you pay the one-time commission, you will pay a monthly administrative fee to the service in exchange for drastically reduced interest rates and the management of all your accounts.

Home Equity Loan or Line of Credit

If you have equity in your home, you might get debt relief help in the form of a home equity loan or line of credit. Home equity is determined by taking the current appraised value of your home less all outstanding debts on the property. For instance, if your home is worth $200,000, and you owe $170,000 on your mortgage, you have $30,000 in home equity that lenders will let you borrow. Though this form of debt relief help can offer very low interest rates, it is risky because if you default on your payments, you could lose your home.

Cash-Out Refinancing

Cash-out refinancing is a form of debt relief help that involves refinancing a mortgage for a larger amount than you owe and taking the difference in cash. For instance, if you owe $80,000 on a $150,000 home, you can refinance your mortgage for $100,000 and walk away with a check for $20,000 in cash. This type of debt relief help usually offers very low interest rates, but has the same risks as a home equity loan in that you could lose your home if you fall behind on payments. Please visit our Frequently Asked Questions page if you have any inquiries.

Credit Card Balance Transfers

Some consumers try to find debt relief help by shuffling their debt around with credit card balance transfers. Low introductory APR offers on credit card can help you with your debt if you intend to pay it off very quickly, as most of these offers last only 6-12 months. Once the offer expires, you will either have to begin paying sky-high interest rates on the balance or find another card to which you can transfer the balance. This can get you caught in a vicious cycle where you just move your debt around instead of paying it down.