The consolidation of financial obligations, bills, debts, and loans is an arrangement to pay your creditors, debtors, or mortgage holders with a new loan making total monthly payment less than the total of previous individual loans. Usually the length of time for scheduled payments is extended and a type of collateral or security is usually also required.
Debt consolidation should be used if your monthly cash flow is insufficient to meet the original monthly payments that you have. Common vehicles used for consolidating your debt are a second mortgage, mortgage refinancing and a home equity loan.
Benefits and Advantages of Debt Consolidation:
Managerial
Debt consolidation makes it easier to administer personal debt, as only one monthly payment is required rather than several. Paying off original or current debts reduces harassment from creditors if this has been the case.
Psychological
Stigma and negative consequences resulting from bankruptcy are avoided. Debt consolidation decreases financial pressures and anxieties at least temporarily and grants financial and psychological peace of mind.
Financial
A debt consolidation benefits individuals and families when bankruptcy is avoided and assets are saved. Property is protected from repossession and services are protected from “cut off” since they are paid through debt consolidation.
Sky Financial Corporation – The Mortgage Center is committed to finding solutions meeting the individual needs and goals of each customer. For debt consolidation solutions and options, talk to one of our specialists today. 1-800-472-9791.
