Print Article
  BookMark Article

Author Login    Author Login

Existing members will have to use the lost password facility to get new username and new password

Welcome Guest! Please login or create an account.



If you do not have an account yet, you can register ( Here ), or you may retrieve a lost user/pass ( Here ).

Navigation    Navigation

   10 newest articles RSS

Author Highlights    Featured Author

Victoria M. Bouchard
Will clayton

View My Bio & Articles

Dustin Hopfer

View My Bio & Articles

rich moon

View My Bio & Articles

Other Websites    Websites of Interest

Debt Consolidation Loans - Will It Be Actually Worth Leaving Your Dwelling At Risk?

Author : Nicholas Hunt

When applying for a debt consolidation loan, you will surely receive an approval faster if you agree to use your home as collateral. However, before rushing in with this decision in mind you should be realistic and consider the risks you are facing if you are not able to stick to the consolidation plan or you are unable to make the payments. If you have any doubt regarding your future income, do not use your home as equity. If you happen to have any other property that is worth something and you do not qualify for an unsecured consolidation loan, use that instead.

If you are opting for an unsecured debt consolidation method, then you will have to pay higher interest rates and lenders will be more reluctant to give a loan or help you. Nonetheless, using your home as equity is never a wise decision even if you are certain that you will be able to pay off the loan in the next couple of years. If you have your home as collateral for any loan, then you will not be able to sell it and what if you need to relocate due to a promotion, for example?

One thing that you should keep in mind is that even if you get a debt consolidation plan that does not mean your problems are over. You are still required to make the payments on the money you borrowed. If you do not have enough willpower to carry this plan till you are debt free, it is advisable to start looking for other methods rather than risk losing your home. In addition, because you will be paying the same amount over a longer period of time and considering the interest rates, you will end up paying more on the long run.

One nightmare outcome of using your home as collateral for your loans is losing your home and still owing money to your lenders. Taking into account the current prices on real estates and the job insecurity levels, you should not take this risk. If you are unable to pay your debts for a couple of months, then rest assure that your lenders will sell your house at the best price they can get. However, there is a chance that the sum they get is not sufficient. As a conclusion, it is not worth risking that much to consolidate your debt.

Author's Resource Box

Nicholas writes for a site offering advice for those experiencing money worries, where you can also read more about losing your home through debt and how to avoid it.

Article Source:

Tags:   debt consolidation, unsecured debt, secured debt, consolidation loans

Author RSS Feed   Author RSS Feed     Category RSS Feed   Category RSS Feed


  Rate This Article
Badly Written Offensive Content Spam
Bad Author Links Mis-spellings Bad Formatting
Bad Author Photo Good Article!




Submitted : 2011-06-22    Word Count : 459    Times Viewed: 649