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Tips for Debt Consolidation

Tips for Debt Consolidation

Unfortunately, debt continues to be a major problem for Americans everywhere. When this burden is added on top of car payments, credit card debt, and a potential mortgage, the stress can be overwhelming. One of the ways that people can try to lessen the financial stress is to consolidate their debt. Those who are looking to consolidate debt should keep a few pointers in mind.

Check Your Credit Score Beforehand

Debt consolidation may often include an opportunity to refinance your home. The goal of refinancing is to bundle the debt and package all of it at a new, lower rate. In order for people to get this lower rate, they will need to make sure their credit score is solid because this will impact their interest rate.

Assess the Market

Over the life of your debts, the loan market is going to fluctuate just like any other market will. The interest rates could go up or down. When consolidating debts, make sure to assess the current state of the market. If interest rates have gone down, this is a good time to consolidate debts and refinance. If interest rates have gone up, it may be better to wait for the market to come back down before attempting to refinance.

Trust a Professional

Debt consolidation is tricky. Not all debts are good for consolidation and not all loan officers are going to have your best interests at heart. For this reason, it is vital for people to do their research on every professional and make sure that they will place the customer's interests first.

The experts at Midland Mortgage are here to help you consolidate your debt through refinancing. If you have questions about whether or not refinancing your home is the right choice for you, contact us today!

Posted May 24, 2017 by Midland Mortgage Corporation