How does either loan affect credit scores etc…?Which one tends to get the better interest rate? Any reccomendations on what financial institution to go through? How much money do you need to make to take out approx. 10k? Any other info you can provide would help out a lot!

Everyone has been in this situation. You have credit cards and you just go too far with them. Further then you can actually handle financially. Let’s face it; they are quick, fast and available. As with anything quick, fast and available, after the enjoyment has passed, the trouble comes. In the case of credit cards that trouble comes in the form of mounting bills with what seems like never-ending interest charges and fees. This leads to a mountain of debt and unpaid minimum charges, which in turn lead to a bad credit history, something no one ever wants to have.

This is one of the reasons the economy is so bad today-people got a lot of credit they just were not able to pay. Instead of filing for bankruptcy, you have another option. This option is to consolidate credit card bills and to consolidate bills in general. It is better for you and your credit history; and it is better for the economy as well.

If you decide to consolidate credit card bills or consolidate bills in general, here is what you can expect as a customer. You must go see a counsellor/consultant about this option and they will help you to consolidate credit cards so you can get out of debt fast. Before they do this, they will ask of you something’s.

First, they are going to want to know just how far in the hole you are. They will write down every bit of debt you have accumulated and total it up for you. You might be shocked to find out the full value of your debt load. Secondly, they are going to tell you to stop generating more debt! They can’t help you if you run out there and go on another shopping spree or get a new big screen TV. After all, you can only help those who help themselves.

Thirdly, they are going to ask you to list all sources of income that you may have. They will ask you if there’s a way for you to increase your income so you’ll have more money to help pay off the principle debt load. This may mean you will have to take a second job or at least a part time job on the side.

Fourth, once you have stopped gaining more debt and have your income figured out, they will then set down with your creditors and negotiate with them, by telling them that you will have to file bankruptcy if you cannot consolidate. Then they will, generally, consolidate credit cards with a deal that pleases you, the customer, and them, the creditors. With this you will hopefully have a greatly reduced interest rates and fees. After this is all settled away, you will HAVE to pay that one monthly consolidated bill every month. This will greatly help fix your bad credit history and relieve a lot of stress on you by only having to worry about paying one bill every month.

How does either loan affect credit scores etc…?Which one tends to get the better interest rate? Any reccomendations on what financial institution to go through? How much money do you need to make to take out approx. 10k? Any other info you can provide would help out a lot!

When life gets complicated by credit card debt, consider a debt consolidation home equity loan.

Credit card interest continues to grow. If you miss a payment the interest can go to twenty or thirty percent quickly. Pretty soon the minimum payments on the money you borrowed through credit cards can be huge and a debt consolidation home equity loan can get you out of trouble.

If you want to lower those payments, a home equity loan offers a secured debt which has a much lower rate of interest. You are using the equity in your home to secure the debt, so the loan company is assured that they can get their money from you one way or another and can charge a lower interest rate.

By consolidating the payments into one loan, you can reduce the amount of money you are paying on this debt by a large percentage. A home equity loan will allow you to pay less but be able to pay off the credit card debt sooner than if you had continued to make minimum monthly payments on the debt.

If you have the financial means to continue making the same monthly payments on the debt consolidation home equity loan that you were making on the credit cards, you will cut even more years and interest off the amount that you pay back on this debt. In the end, you will save money using the HELOC to pay off the debt.

Be careful once you have paid your credit card balances off using the HELOC.

Many people fall into the trap of running balances on the card back to the maximum again. Now they are paying the same credit card payment as before plus the HELOC payment. For many, there is no more equity in the home so they are stuck with a double payment on the credit cards.

While it is important that you do not overextend credit on the cards again, you will need to use them periodically to avoid having the credit card company close your accounts. If the accounts are closed, it can affect your credit score and may hinder your ability to get credit in the future.

Use the each card you want to keep open every two to three months and the pay it in full as soon as the bill is posted.

Be careful that you do not purchase more on the card than can be paid in full at the end of every month. Rotate the cards that you use each time in order to make sure that all cards have a small purchase and payment every two to three months so that they remain active.

Used wisely, a debt consolidation home equity loan can be a good thing.