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Refinancing and Debt Consolidation

Refinancing and Debt Consolidation


    

Refinancing and Debt Consolidation

by Bob Jones

It is a fact that there are only a few online debt consolidation lenders, who will help debtors actually reduce their debts. However, homeowners who are deep in debt can use their houses as collateral to raise a consolidation loan to pay off their outstanding debts. These loans are offered to the debtor to pay off existing debts. Then the debtor must repay the consolidation loan in monthly instalments.

To put it another way, all your debts are calculated and rolled into one debt refinancing package, which is repaid by a single monthly instalment. Furthermore, if you have credit card loans, then these loans and their interest will also roll into that monthly instalment. Likewise if you have personal or home loans or any other kinds of loan, then these are also included in the one debt consolidation or refinancing repayment per month. This is called debt consolidation refinancing.

Some debt consolidation refinancing packages make it really easy and provide short programs, which will link you with an expert, who will search for a way to reduce your debts by assessing the details you provide him to see whether there is a debt consolidation refinancing deal which is suitable for you.

"Money Management International" (MMI) is an example of the many online "Consumer Credit Counseling Services" (CCCS). They are non-profit organizations which provide debt consolidation refinancing advice for those going through financial hardship.

Since it is usually better to use these non-profit organizations than the services of a bank or financial adviser and because MMI is a member of the "Better Business Bureau", we will refer to this debt consolidation and refinancing organization to assist you to get a better idea of what debt consolidation refinancing is there for you.

After you have joined up with an online debt consolidation refinancing company and have been accepted, then the professional financial advisers will work with your creditors and ask for consideration. This only means that the advisers will put their heads together to try choose a debt consolidation refinancing package that is acceptable to both you and your creditors.

Let's say you were paying $1,200 per month in instalments, a debt consolidation refinancing counsellor might work to have your monthly repayment reduced to, say, $600 give or take a couple of hundred dollars. This figure is half the amount you were paying in the first place and represents a good deal in debt consolidation refinancing, although you will have to keep the repayments up for a much longer period of time!

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