|
Digital News Report – The goal of a debt consolidation loan is to lower monthly payments and consolidate the payments into one easy bill. In some cases this type of financing can shorten the length of time to pay-off the loans.
Chase Bank offers both secured and unsecured debt consolidation loans. The secure loans may come with a lower interest rate but they will also entail more paperwork. Customers will need to qualify for this loan using collateral like a home, car or other valuable.
A secure home debt consolidation loan will require equity in a home. Chase bank says they offer a home equity line of credit (HLOC) and regular home loan financing. “Rates on home equity loans and lines can be lower than credit card rates by 7-10%-or more,” the bank said in a statement.
There are some tax advantages to a home loan. The interest can be tax deductible. Check with your tax professional first.
Union Bank offers personal loans for debt consolidation and other purposes. Their loan amounts begin at $2,000. They offer a fixed interest rate and a fixed term. The monthly payments will not change.
The bank touts the predictability of these loans.
Always check with a financial professional to determine what the right course of action is for you specifically.
By: Tina Brown