Help consolidating my debt

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On the other hand, when it comes to your mortgage, your house serves as collateral, so that if you were to stop paying your mortgage, the bank could take your house.

Once you have agreed to the debt consolidation plan, you can’t go back, so it’s important to understand the potential consequences first.While home equity loans usually have fixed terms, meaning the amount of the loan, the interest rate, and the timetable for paying back the loan are all fixed, HELOCs on the other hand allow you to apply for a credit limit that you can draw upon at your convenience – but with no guarantee that your interest rates will stay the same.While a home equity loan or HELOC can usually provide a lower interest rates than other loan types, there’s a catch.Which is why a consolidation loan can often prove to be a better option: it may allow you to get a lower interest rate, which would save you money over the long-run.2) High monthly payments People with lots of debt also frequently struggle with high minimum payments – which are sometimes more than they can pay each month.

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