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HelpIn a nutshell, debt consolidation allows consumers to roll up all of their high interest consumer loans, namely credit cards, into one loan. Most of these loans are actually home equity loans in disguise as the lender is issuing a second mortgage on the consumer’s home.
But homeowners shouldn’t jump into a consolidation home equity loan. Such loans carry a different set of risks. Most consumer debt is unsecured, but not home equity loans. If the homeowner is unable to make their new loan payments, the home equity lender can foreclose on their home. Also, a less obvious risk is that by consolidating loans, the period of time which it takes to pay down the new debt is extended quite substantially.
With the economy on shaky footing, much of the debt consolidation market has frozen as lenders become more risk averse. But if one looks hard enough they can still find these loans.
There’s a wealth of info on debt consolidation techniques on the web. And this is where any search should start for those seeking debt consolidation loans.
Take your time to learn everything there is to know about your options. You may even want to consult with a credit repair firm to clean up your credit history before seeking a new loan.
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- Home Equity Loans Often Too Tempting for Homeowners « Easy Home … | best--homeowner--loans.Co.CC
