What is a Debt Consolidation Loan? A Debt Consolidation Loan provides a way to lower your monthly debt payout. A consolidation loan is done by way of a home equity loan or refinance loan.  Consolidating can lower the total amount you pay out each month. You can even arrange to get extra cash. Here are a few reasons to consolidate:

Consolidate high-interest debt = Such as credit cards and other loans. When you refinance in this fashion, the same monthly payment will pay off your bills much quicker.

Get Extra Cash = Go on that long-deserved vacation, pay for a college education improve your house, consolidate your debts, get out of bankruptcy, buy a car, reduce your payments, pay bills, buy another house, start a business, buy a boat, start investing, pay off bad debts, solve your tax problems. It's your choice.

Lower your Rate / Refinance Option = Get a better rate than you are currently paying and thereby reduce your monthly payments. Even a small reduction in your interest rate can add up to significant savings in the long run.

Reduce your Term / Refinance Option = Change to a 10 or 15 year loan and pay off your home sooner.

What is a Debt Management Program? A Debt Management Program or DMP is an agreement between you and a Credit Counseling Agency. Usually, you would agree to repay your debt in full without incurring any more debt and in return most cases, the creditors would waive any interest charges or late fees. Reasons to apply for a debt management program:

Save Time: A DMP can help get you out of debt more quickly than you could on your own.

Save Money: A DMP can drastically reduce the high rates of interest typically charged by most creditors. They also eliminate late fees, so more of your money goes toward reducing your debt.

Gain Peace of Mind: Besides putting an end to harassing calls from collectors, the right provider can guide you through a difficult time and help you plan a brighter financial future.

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