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Do you know of any reputable debt consolidation companies? I have 2 credit cards and 1 personal loan, for about 20k, that I would like to consolidate into one bill. Any options or suggestions no how to do this?

www.bills.com Co-CEO of Bills.com, Brad Stroh discusses debt consolidation options, as well as other financial options available to consumers looking for help with severe debt problems. Learn about the differences between debt consolidation, loans, credit counseling, debt settlement, and…

This is related mainly to my personal business, and personal finances. Any help on this, or an organization to help with credit card debt consolidation, would be greatly appreciated.

I own my home, but do not have enough equity built to refinance and get $50K to pay off credit card debt-what are my options? Someone told me a second mortgage may work, but I have only owned my home for 14 months. Balance on my current mortgage is $77K, home value is max $90K.

Learn about the pros and cons about the various debt consolidation options and see why Freedom Debt Relief has the best option to tackle your debt problem.

Have you thought about consolidating your credit card debt?  If those high interest rates on cards are killing you, this may be an option.  When you consolidate credit card debt, you get one lower payment per month.

There are four easy ways to go about consolidating credit card debt.

1. Get a home equity loan.  A home equity loan is a second, third, or even fourth against the value of your home.  You pay off all of your credit cards and secondary debt and make one payment to the lender.  There are a number of advantages to a home equity loan when consolidating credit card debt.  For one thing, home equity loans have the lowest interest rate you can find.  Another reason is that if you have equity in your home, they are fairly easy to get.  But, be forewarned that if you can´t pay the debt in full each month, you could risk placing your entire home in danger of foreclosure.

2. Get a personal, or signature loan.  A debt consolidation loan is frequently available from your bank or from a lender affiliated with debt consolidation quotes that you can get for free.  Again, you will pay off all of your high interest smaller loans and make one payment to the lender.  While the debt consolidation loan will have a lower interest rate than your high interest credit cards, it will not be as low as a home equity loan.  This is caused for  having no assets backing up the loan.  You can also discharge a personal loan in bankruptcy, something you can’t do with a home equity loan.

3. Get a credit card with a large balance.  If you have several small credit card bills, you can sometimes get one low interest credit card and transfer all of the other balances to it.  Be sure that you get rid of all of the small cards or you may be tempted to use them and then have twice as much debt.  If you have a decent credit report, you may be able to get a credit card with a large credit limit.  But, make sure that the new card has a lower interest rate than all of the small cards because that is the whole point of consolidating credit card debt.

4. If you can´t consolidate credit card debt by working with lenders or credit card companies directly, go to a debt consolidation firm.  These firms work with the credit card companies themselves.  Frequently, they are able to negotiate lower interest rates or even get the principle reduced.  Then, instead of paying multiple bills each month, you will make one payment to the debt consolidation company.  Keep in mind that there are for profit and not for profit debt consolidation companies.  Some of the for profit companies have turned out to be very nasty.  So, do your due diligence before signing up.

We all have many options for consolidating credit card debt.  Choose the one that gives you the best combination of lowest payments per month and lowest overall interest payments over the life of the loan.
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Consolidate Credit Card Debt

When managing your existing credit cards seems overwhelming, one effective way to ease both the financial and emotional burden of the cards is to consider the option to consolidate credit card debt. There are several ways to consolidate credit card debt, and there are many benefits that arise from the choice to consolidate credit card debt.

First, what does it mean to consolidate credit card debt? One way to consolidate credit card debt is to take out a new personal loan and use the proceeds to pay down your existing credit cards. Another way to consolidate credit card debt is to perform a balance transfer; this involves applying for a new credit card which will allow you to transfer all the balances from your existing cards onto this one new card.

Both of these methods to consolidate credit card debt involve opening an additional unsecured credit account. Another alternative to consolidate credit card debt is to look into borrowing against your home equity. One way to do this is to take out a Home Equity Line of Credit (HELOC), which is credit line against the equity in your home. You would then use the proceeds of this to pay down all of your credit cards. Another way to take advantage of the equity appreciation in your home to consolidate credit card debt is to refinance your existing mortgage. As part of this refinance, you would use some of the proceeds to pay off your existing credit cards. This type of refinance is often called a debt consolidation refinance – you are consolidating both your old mortgage and your existing credit cards into one new mortgage.

Now that you understand how to consolidate credit card debt, it is important to understand the benefits of this strategy.

• Lower Interest Rate: Perhaps the most significant benefit that results when you consolidate credit card debt is that the new account that you are opening will carry a lower interest rate than the rates on the credit cards that you are paying off. This means that it will cost you less over time to pay off your debt. If your credit is strong enough, you may even qualify for a 0% balance transfer, which means that you will not have to pay interest charges on your debt for a set period of time. Moreover, a secured loan (e.g. mortgage refinance, HELOC, etc.) will generally have a lower interest rate than your existing credit cards.

• Faster Repayment Period: Along with saving money over the long term by lowering your interest rate, you will also more than likely be offered a lower monthly payment. This may be very attractive given your current financial situation. However, if you are able to maintain your present monthly payment amount after you consolidate credit card debt, you will be able to pay off the new balance much more quickly than you would have with the old credit cards.

• Ease of One Bill: Another very important benefit that comes with choosing to consolidate credit card debt is the simplicity of having one monthly bill that comes with the new account that you have opened. With multiple credit cards you are receiving multiple bills, more than likely with different payment due dates throughout the month. Not only is this difficult to keep track of, it also increases the likelihood that you will miss a payment and end up paying late fees and incurring higher interest rates. It is easy to see how one monthly bill can lower your stress level considerably!

These are just some of the many attractive reasons to consolidate credit card debt. Be sure to examine all of the financing options available to you before deciding on the right one. You may be eligible for a loan or credit card with very low interest rate relative to what you are paying.

If you are up to your neck in debt, there may seem like there is no relief in sight. In fact this is not necessarily the truth. There are ways to take all of your stifling bills and roll them up into one neat package by using debt consolidation in two very popular forms Home Equity Loans, Refinancing Loans, and a Consolidation Credit Card. All of these instruments provide the debtor with one thing “relief” from the current debt by shrinking it down to a single manageable debt.

Using home equity to consolidate debts

One of the popular methods of debt consolidation today is the Home Equity Loan. What happens is that the debt is extinguished using the equity from a homeowner’s home. A loan is created outside of the mortgage in order to satisfy the debts. Should the homeowner default on the loan, their house is in jeopardy of being foreclosed upon if that loan is not satisfied with a specified amount of time.

Refinancing loans

People often consume the debt by rolling it into a new mortgage. This way the house costs more money to the borrower, but the debt is extinguished at close and the debt is neatly rolled away into the mortgage securely. Upon settlement of the loan, the debts are paid in full and satisfied. The clock on the mortgage is reset to day one.

Credit card consolidation

A low interest credit card is offered to the borrower to include any outstanding credit and loan balances. The interest rate is a low fixed rate for a period of up to one year, upon the year’s end it will resume at its normal rate. Upon acceptance and terms the account should be closed once paid in full and payments be made directly to the new credit card provider. Some people have been able to master paying off one credit card with another to keep the debt revolving and interest rates low. Some people fail to close out the previous creditors account and run them back up again as well.

All three of these options provide solid relief for the debt and help them reconstruct and manage their debt better.

I have about 40 % positive home equity , no late payments , but I only have been owning the house for a couple months. My house is in California and I have a fair to good credit with too many inquiries in the last 6 months.