Using the Equity in your home by taking out a Las Vegas Debt Consolidation loan may be a very useful strategy to pay off high interest credit cards.  Consolidating debt by using equity in your home assists the home owner by freeing up more money every month & gets their debt paid down faster due to lower interest rates via the home loan.

There must be a core focus in this strategy once the debt and/or credit cards are paid off and that is not to charge back on them again or take out new loans.  I would like to explain the debt consolidation program that I recommend as opposed to the traditional debt consoldiation programs offered by other so called Mortgage Planners.  The after effects of following my strategy will also result in a person’s lower credit rating to increase.   

With the extra money each month, you can begin to build yourself a budget that makes you stay within your means and begin using cash instead of relying on credit for living expenses.  Now you’re on the path to working towards your goals, dreams and the chance at retiring with money in the bank. 

End result = happier, less stress free family, with more liquidity and a wealthier future.

If you are here to consolidate debt, then First, I commend you for taking action towards increasing your financial stability.  I would like to offer a point of view if you are searching for a get out of debt strategy.  Please use heavy caution if you are considering a debt repair company called consumer credit counseling.  The type of company I refer to is one that will make the monthly payments to your creditors and they will consolidate all of your bills into one payment.  I can name several problems that result from using this type of service. 

First and foremost, lenders rate consumer credit counseling right next to Bankruptcy.  Only in this instance you have no choice to file 7 or 13.  In this instance, you will have to pay back the whole debt and while you’re paying the debt down, your ability to buy a home will be difficult.  If you can find a lender the rates will be too high to afford.

Next, the repair company has a negative impact on your credit score for an extended period of time before it starts having a positive one. 

For example, once the accounts are handed over to the debt company for repair, you most likely will have to agree to close the accounts.  Once this happens, all the time that was spent building a relationship with those creditors is gone.  A percentage of your credit score is based on the length of time your accounts have been open.  It won’t help to try to re-open the account, because the bureaus will view the account as a new one which will drag your credit score down until the newly opened account has been re-established (usually 6 months in time).

Second, all the timely payments that are now being made to the creditors no longer count towards your credit scores because the accounts are closed. 

Not to mention another risk you take by placing the responsibility of making timely payments into someone else’s hands.   

Thirdly, you will be waiting for a great portion of your debt to be paid down before your credit can begin to restore.  How long could that take?  If your amount of debt is in the tens of thousands, it could take months or even several years to pay down a greater portion of the debt. 

Another possible avenue is using the equity in your home to pay off the accumulated debt.  It takes care of the debt in one fair swoop, thereby lowering all the account balances immediately while leaving them open.  Once the account balances are lower than 40-50% of the available credit line, this will positively impact your credit score  within anywhere from 30-45 days.  You may have to pay a higher interest rate to obtain the initial loan if your credit score is low, but after the credit is repaired, you can re-finance your mortgage with the newly restored credit.  The light at the end of the tunnel is brighter than you think with some thoughtful planning. 

Would it make you extremely excited if I remind you that the interest you pay towards your mortgage may be tax deductible?  I guarantee that the interest paid to a debt repair company or consumer credit counseling will NOT BE.