Debt Consolidation: Now's the Time

Debt consolidation: Loosely defined, it's the act of combining several loans or debts — usually credit card debt — into one low payment. This can offer two big economic advantages: Lower interest rates and greater simplicity. Both are goals to work toward, and both are decidedly achievable. But how?

Here's the short-term solution: Consider a debt consolidation loan. It can cut those numerous high-interest debts down to size into one low-interest loan with one fell swoop. But exactly who qualifies for a debt consolidation loan? Do you have to own a home or not? And what about equity...? There's a little confusion. Let's clear this up.

Debt Consolidation Loan Options

Consolidating several high-interest loans into one low, manageable payment can dramatically free up your cash. With the extra money you will have, you can feel free to pay more against the principal (and pay off debts earlier), or use the extra cash wisely in other areas where it's needed.

The important thing is that you make a move to reduce your debt now. The more you wait, the more cash you stand to lose. But, which avenue to debt consolidation is right for you?

Luckily, there are a multitude of debt reduction options available. We'll run through them for you, so you can decide which best fits your needs. Let's first start with whether you're a homeowner.

For Homeowners

Homeowners have a veritable laundry list of debt consolidation options available. Each has its debt reducing strengths that should be carefully measured against your individual needs.