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Personal Loans

A Personal Loan is granted for personal use and is often unsecured and based on the borrower's integrity and ability to repay. If a bank grants you an unsecured personal loan, you could consolidate debt by paying off all of your creditors at once, and then making one payment to the bank each month. This makes it easier to plan out your payments each month and helps to avoid late fees.

There are several reasons why a personal loan isn't always an ideal solution. For one, you need to qualify first. It's not easy to obtain a personal loan for people with bad credit. personal loans for bad credit can lead to higher interest rates and stricter rules. Unsecured loans may be known as "signature loans", whereby your signature represents your word to repay the loan. But bad credit loans may require ownership of real estate or a pledge of collateral. If this is the case and you miss a payment on your secured personal loan, you could lose your home or collateral. Bottom line: With a secure personal loan, you are exchanging unsecured debts for a secured debt - a big risk. Ask yourself, with your credit situation, could you qualify for an unsecured personal loan? If not, you are likely looking at a personal loan for people with bad credit. As previously mentioned, personal loans for bad credit will have higher interest rates, if you qualify. The repayment could take 10-20 years, depending on your debt. And you will still be repaying the full amount of your credit card balances with a personal loan.

There are also payroll loans. These are personal loans secured by your next paycheck. They are particularly geared toward those who apply for bad credit loans. There is no collateral for these unsecured personal loans for people with bad credit. However, the interest rates approach loan shark levels, at approximately 5-10% per week! This amounts to 200-500% annually!

If you cannot qualify for a personal loan, are worried about rising interest rates, or want to avoid bad credit loans, then a debt reduction program may be an option. We can help reduce your debts so you don't have to worry about obtaining a personal loan. Even if you already have a personal loan, we may be able to negotiate a 40-60% settlement on it. Click Here for a free consultation from Debt Center USA.

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Home Equity Loans

If you own a home or real estate, you could potentially refinance your mortgage or take out a home equity loan. If you have equity in your home, then you could refinance your existing mortgage, to cashout and take advantage of low mortgage interest rates. A cashout occurs when you refinance your old mortgage with a larger mortgage so you can cashout equity that has accrued in your home. Or, you can take out a home equity line of credit. You can get a home equity loan even if you don't have equity. Equity is the difference between your home's appraised value and your outstanding mortgage balance.
A home equity line of credit is secured by the equity in your home. It is a revolving line of credit. As you pay back what you borrow, the money is yours to keep using. The rates, like your mortgage or interest rates, are determined by credit scores and combined Loan-to-Value ratios.

A home equity loan (or cashout, if you refinance) will reduce future equity available in your property. However, you do not need equity to qualify for a home equity loan. Some lenders will pre-qualify you for a home equity loan of up to 125% of your home's appraised value, with good credit. A home equity loan is secured by your home's appraised value. Home equity loan products usually have higher interest rates than a first mortgage. Compare home equity loan costs to your credit card interest rates. Then figure in the tax savings on your home equity loan, and you'll see why a home equity loan makes sense.
Another option is to refinance your first mortgage to take advantage of today's low interest rates. Several factors determine whether you can refinance: interest rates, the cashout, or the size of mortgage, your credit score, existing mortgage terms, debt to income ratio, income, and current interest rates. Your new mortgage could be for a higher amount so you would be able to cashout equity that you already have in your home. You'll then pay the interest rates on the new mortgage after you refinance. Even though the mortgage would be larger, the lower interest rates may compensate. Interest rates are at all-time lows but they will eventually rise. The same is true of home equity loan rates.

To secure a home equity loan or refinance, first you must qualify. It may also take 10-20 years, depending on the balance or interest rates, to repay the home equity loan. A mortgage can take 30 years to repay. You can use the cashout to eliminate your debt, but you will be paying back the full amount of these balances. The bottom line is, you will be exchanging your unsecured debts for a home equity loan, secured by your home. If you default on the home equity loan or fall behind on your mortgage, the lender can foreclose on your home. That's why a home equity loan is really most suited to stable borrowers. The average home equity loan customer is 35 to 49 years old with a household income of $83,998, according to the Consumer Bankers Association. Missing payments on your mortgage or home equity loan could cost you your home or the collateral you pledged for the home equity loan.

If you cannot qualify for a home equity loan, don't have enough equity for a cashout, or are worried about rising interest rates or refinancing your mortgage, our qualified debt reduction company may be a viable alternative. We will help reduce your debts to a manageable level so you don't have to secure a home equity loan or risk your mortgage. Click Here for a free consultation from Debt Center USA.

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Debt Center USA
"Save money now and build for the future."
Can't get a loan to pay off your debts?

Consolidating your debts into a new low-interest loan would save you money monthly and reduce the number of payments you need to make. However, if you owe a lot of money, it is difficult to get a good new loan without putting up collateral or digging into the equity in your home. Your debt-to-income ratio is working against you because of the debt load hanging over your head, even if you pay your debts on time! You may have a better option in a Debt Settlement program. Get immediate help and fix your financial situation for the future.
==> Click Here to learn about Debt Settlement.

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