All payments made during that time will go toward reducing your balance.When the introductory rate ends, interest rates jump to 13–27% on the remaining balance.You could get a home equity line of credit, a home equity loan or a second mortgage on your home, or refinance your existing mortgage.
The non-profit agency can help you get a lower interest rate from creditors and reduce or waive late fees to help make your monthly payment affordable.
You send one payment to the agency running the DMP and they split it among all your creditors.
— and what the monthly payment and interest rates are on those bills. Once you have this information, make sure to compare lender’s rates, fees and length of time making payments before making a decision.
A consolidation loan should reduce your interest rate, lower your monthly payment, and give you a practical way to eliminate debt.
There are several types of DCLs, including home equity loans, zero-interest balance transfers on credit cards, personal loans, and consolidating student loans.