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Is Debt Consolidation Right For Me?


The Spire
What Is Debt Consolidation?
Debt consolidation is the combination of multiple debt sources with different interest rates, payments, and due dates into a single loan with a more-favorable term structure. There are multiple options for debt consolidation; based on the circumstances involved, such as credit score and overall amount of debt, some methods may be more beneficial than others.

Personal Loans:

Combining several sources of debt into a fixed monthly payment amount.

Credit Card Balance Transfers:

Moving outstanding balances to a card with a lower APR. Introductory rates are often offered.

Home Equity Loans:

Pay off higher-interest debt using your home as collateral.

Debt Management and Credit Counseling:

Utilize recommended third-party agencies to renegotiate or pay down existing debt over time.

Are There Disadvantages To Consolidating Debt?
All financing scenarios, including debt consolidation, carry pros and cons. As an example, there may be limits to how much may be combined at once, minimum credit scores, and transfer fees or closing costs. It’s best to weigh multiple options thoroughly and make an informed decision after careful consideration.
Should I Consider Debt Consolidation?
One fixed payment at a lower rate is typically the primary goal of combining debt. Items to consider before consolidating debt include checking your current credit score, determining the overall amount of money you need to borrow, and comparing interest rates. Your trusted mortgage professional will present your best options and assist with making a informed decision to improve your overall financial standing.

A Lending Hand for Financing Home Mortgages

Spire Financial (A Division of V.I.P. Mortgage, Inc.) brings lending expertise to you. All of our loan officers offer personalized communication for every client, guiding them through the process. We can show you ways to maximize your finances and unlock future opportunities. Spire Financial keeps you in control of refinancing, debt consolidation, and home equity. Together, we can achieve your financial goals.