Home   Glossary   Contact Us  
  Welcome to the
  GayMortgageLoans.com is a Free Directory of Gay, Lesbian & Gay Friendly Mortgage Lenders and Mortgage Brokers, serving the LGBT Community.
News Back
Debt Consolidation Tips

Getting out of debt isn't easy, especially if you carry high balances, as many of us do. One strategy is to consolidate your debts into a single, lower- interest interest loan. Finding that loan can be a challenge, though, if you already have a fair amount of debt. So you may find that you have to get creative.

The truth is, you probably have more options then you realize. Traditional "consolidation loans" from a financial institution may not even be your best choice. Instead, you may want to think about:

  • using credit cards
  • a home equity loan
  • a loan from your insurance policy or retirement plan
  • a loan from a relative to consolidate

Each of these options can be extremely helpful or extremely dangerous depending on how you use them. The key when you consolidate is to create a plan that will have you out of debt in three to five years, and to stop adding to your debt!

For example, if you owe $10,000 at an interest rate of eleven percent, you'll have to pay $327 a month to be debt- free in its three years, or $212 a month if your goal is five years. If you owe $5000 at that same rate, your payments would be $164 for a three-year re- payment plan, and $109 if you stretch it to five.

It's likely that your consolidation loan will offer much lower payments, but that could mean you'll be paying on it for ten years or more! If you discover there is no way that you can pay off your balances (not including a mortgage) in five years or less, it's probably a good idea to talk with a credit counseling agency like Debt Counselors of America at http://www.dca.org.

Source: Federal Trade Commission
Go Back to All Tips


Find Lenders
Enter City Name:
  Useful Links
Mortgage Calculators
Loan Programs
Mortgage Glossary
Mortgage Tips
All About Mortgages
  Recent News
Meet the $8K Home Buyer Deadline with Help from LGBT Pros
Tips for Buyers: How to Tour a Home like a Professional
Plain Talk about Fancy Mortgages: Stick with the old-fashioned 30-year fixed.
How Financial Overhaul Changes the Mortgage Market
The Gay Ghetto Top 10 for 2008
Add Your Listing - Frequently Asked Quesions
Real Estate Green Living Tips: Save money with a sustainable home
Types of Loan Programs
Closing The Deal
July, 2010
February, 2010
January, 2010
December, 2009
August, 2009
June, 2009
May, 2009
April, 2009
March, 2009
February, 2009
January, 2009
December, 2008
November, 2008
October, 2008
September, 2008
All News