Consumers have seen significant debt relief solutions over the last few years.  In the past homeowners had a serious edge in consolidating credit card debt, because they could take out a fixed rate home equity mortgage to eliminate high interest variable rate credit cards.  Traditionally home equity rates have been affordable and lenders were pretty aggressive with second mortgage programs if borrowers were getting the loan for the purposes of consolidating debt.

Debt Settlement

  1. Don’t need to own a home
  2. No Equity Required
  3. Could Harm Credit
  4. Settle for 30 50%
  5. Settlement 12- 36 months
Secured Debt Consolidation

  1. Must own a home
  2. Must Have Equity in Home
  3. Beneficial to Credit
  4. Pay back 100% of debt + interest.
  5. Consolidation 10 to 30 years

A few years ago, debt settlement programs become available to homeowners and non-homeowners alike.  Now people who had been burdened with credit card debt had another solution besides bankruptcy or a bad credit debt consolidation loan.  Nationwide Lender posted a good article recently Comparing Credit Card Debt Settlement to Debt Consolidation Mortgage.  Importantly, the company reminded us that managing your debt is a critical financial decision.  Today, there are more debt relief solutions forever for disposing credit card debt and securing a fresh start.

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