Did you know that you can use the first or second mortgage to pay off your debt? A first or second mortgage makes debt consolidation easy and helps make paying off your debt more manageable. If you are unsure whether the first or second mortgage for debt consolidation makes this sense consider the 4 benefits of this money savings! Aside from that, you might also need to visit allstatedebtconsolidation.com if you wish to know more info about the debt consolidation services.
1. Payment is low
Why make multiple payments every month to cover your huge credit card bills, save and gas bills, loans and whatever other kind of debt you pay when a single monthly payment covers everything? When you use a first or second mortgage to pay off debt, you start by getting a loan large enough to cover the total amount due to any debt you want to consolidate. You then use those funds to bring each balance down to zero.
With your debt being paid in full you will be left with only one monthly payment that will go towards paying the first or second mortgage. Plus, with just one monthly bill to pay, you will no longer waste your money paying interest every month – much of which is based on high-interest rates – on any of their debt. The interest rate you will pay on the first or second mortgage will most likely be in single digits and it will save you money!
2. Interest rates can be deducted from taxes
Speaking of interest rates, another benefit of debt consolidation using a first or second mortgage is that the interest you pay for this type of loan is tax deductible. Not only will you pay less in interest every month, you will be able to lower your taxable income, which will most likely save you more money.
3. Simple flowers vs compound interest
Did you find that even though you keep making monthly payments the balance does not seem to shrink much? You can thank the compound interest for it. When the compound interest means that the interest is calculated based on the balance at maturity. Furthermore, the calculated interest is added to the balance because it creates a new equilibrium. This newly calculated amount is then used as a basis for calculating interest in the previous billing period. easy to calculate interest is only based on the principle of being. Most first or second mortgages calculate interest using a simple formula again, will save money.
4. You will have a new beginning
If you make a minimum payment on your monthly debt, it could take up to 30 years to pay them the full balance! Getting the first or second mortgage for debt consolidation pays off your debt all at once and makes you feel like you’re spinning your wheels with no luck. It will be like getting a fresh start but you should avoid the temptation to run their bills again!