Do you have too much debt? Are you feeling overwhelmed by bills every month? If so, debt consolidation might be the answer for you.

Basically, with debt consolidation, your bills are grouped together into one combined debt. So instead of making multiple payments monthly, you only make one single payment each month.

Some other benefits that debt consolidation can give you include:

• You’ll have a lower monthly payment than all of your current payments combined.
• You’ll have more spending money each month since your payment will be lower, and you’ll be paying less interest to your multiple creditors.
• You only have to remember to pay one bill instead of multiple ones.
• You’ll be able to budget better, which is a necessity for overcoming debt.
• It may improve your credit score over time.
• Creditors may be less likely to hassle you if you’ve had credit problems in the past.
• Some debt consolidation costs may be tax deductible (talk to your accountant).

With debt consolidation, you need to remember the debt hasn’t gone away; you’re simply transferring it to a new lender.

Some cons to debt consolidation are:

•  You’ll have a longer repayment period and the total amount you owe will increase. But you can always pay more than the minimum monthly payment each month to pay off your loan quicker.
• You may continue on with your poor spending habits and rack up even more debt. When you go with debt consolidation, you need to stop increasing your overall debt.
• You may or may not get a lower interest rate on your debt consolidation loan.
• Many debt consolidation loans require collateral, such as a house, in return. If you can’t repay the loan, then your collateral can be taken from you.
• Late payments on your debt consolidation loan can result in your interest rate rising.

If debt consolidation sounds like a solution to your financial issues, contact Grandview Lending. We offer several options, including:

• Debt consolidation loans which consolidate all of your debts into a one new loan.
• Home equity loans or line of credit, if you currently have a mortgage. This option enables you to borrow against the value of your home to pay off your debts.

Grandview Lending's loan specialists can work with you to determine the debt consolidation option that’s right for your specific situation.

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