Find The Best Loan Option For You
If you are currently burdened by high interest credit card debt and seeking relief in the form of lower monthly payments or reduced interest rates, there are several debt relief strategies that involve loans which may be appropriate for you depending on your financial situation, credit score and your ability to show sufficient income. We will discuss four strategies here and explain five different loans associated with these strategies.
The four most common debt relief strategies that involve using a loan to restructure your credit card debt are:
- A Debt Consolidation Loan
- Refinancing an Existing Mortgage Through a Cash-Out Refinance or Home Equity Line of Credit
- Taking a Life Insurance Loan
- Using Proceeds from a Reverse Mortgage
In the first two strategies for reducing your debts using a loan, you will need to have good credit, be able to document your income and in the case of refinancing your mortgage, also have sufficient equity in your home. In the case of a life insurance loan, there are generally no “Qualification” requirements other than the fact that you own the life insurance policy and have sufficient cash value accumulated in the policy. In the case of using a reverse mortgage, there are some age and residency qualification requirements, and some things you must do on an ongoing basis to remain “Qualified” for this type of loan.
Each loan strategy has distinct advantages and disadvantages and not all loans are suitable for all individuals. You should consider all of your options carefully, taking into account your unique financial situation, before deciding on a particular option. Contact us today and we can explain each of these loan options in greater detail and provide you with a customized plan to help you receive the relief you need.