Debt Consolidation loans in South Carolina

South Carolina - Debt consolidation loan

By refinancing your existing mortgage into a debt consolidation loan, you can combine your debts into one mortgage payment. It’s a great option for people who are repaying only the interest and not the principal on high-interest loans. Debt consolidation mortgages allow one to acquire a coordinated payment plan with a definite pay-off date.

Loan Rates for Debt Consolidation SC

Debt consolidation is a fantastic debt relief option in South Carolina. The main reason for this is the fact that credit cards and other types of consumer debt have greater interest rates (mostly two-digit).  An awesome consolidation loan allows one to save approximately five percent in interest or higher on their consumer and higher interest debts.

Depending on your credit history, you can have interest rate savings that exceed 10%. Your bank or credit union will probably charge a 7%-12% interest rate on your debt consolidation loans. In contrast, other financial companies may charge around 14% or more for secured loans, and at least 30% for unsecured loans.

The Amount You Can Save With Debt Consolidation

In South Carolina, the standard credit card interest rate is 19%. Going by this interest rate, a debt of $10,000 can generate $6,200 or more in interest using the usual 2.5% minimum repayment plan.  Additionally, interest charges can exceed $15,000 with minimum repayment plans that pay only the interest plus 1% of the balance.

You can save thousands of dollars by using a debt consolidation loan to reduce the interest rate by as much as 10%. If you took an unsecured loan for a period of 5 years at 10% APR, you’d pay slightly over $2,700 in interest fees. Moreover, you would significantly reduce your monthly payments and take a shorter time to clear the debt.

We recommend  you research debt consolidation loans and compare them to other available options.  Find out more about how to improve your credit score and reduce the overall amount of interest you are paying. There are various debt consolidation loans so make sure you do your homework and find the best available option!

Is it A Good Idea to Refinance to Consolidate a Debt? 

Refinancing to consolidate debts is a great way to pay down loans and credit cards at lower interest rates.  Additionally, converting higher interest debt that is mainly interest only into a fixed rate with more of your payment going to principal is a wise financial decision.

Can Credit Card Debt Be Consolidated into Your Mortgage?

Yes, if you have enough equity in your house, you can consolidate credit cards or any other type of higher interest loans. The idea is to place the money you owe into a mortgage, home equity loan or line of credit, whichever is the most beneficial.

Debt consolidation serves to merge many debts into one, allowing easier management and helping you save more money. Refinancing is meant to change your existing debt into one that has more favorable terms (usually reduced interest rates).

Debt Consolidate Tips

  • Pay your bills on time and maintain low balances to avoid additional interest.
  • If you have credit cards, manage them in a responsible manner.
  • Do not acquire multiple consolidation loans.
  • Avoid opening several credit cards with the hope of boosting the available credit.

What Are the Disadvantages to Debt Consolidation?

Refinancing your mortgage is an awesome way to reduce your monthly payments and lower interest rates.  However, the one downside is that your loan term restarts unless you choose a shorter mortgage term.

 

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