Home equity debt consolidation loans, a type of secured debt consolidation loan, offer a fixed interest rate.
Interest paid on a home equity loan is usually tax deductible, while credit card interest is not.
But on the other hand, having maxed out the limit on your credit cards also hurts your score.
If you have the collateral and can meet the requirements, a secured loan may save you money on interest as you pay down your debt.
Debt consolidation loans are used to pay off and simplify existing debt by consolidating multiple payments and accounts into a single account with one lender and payment. Depending on your creditworthiness, you may be able to receive a lower interest rate on a debt consolidation loan than you are currently paying on your debt, saving you money on monthly payments and overall interest.
Another option for lowering your monthly payment is with a long loan term.
Consolidating the two into a new, 30-year mortgage at 4.5 percent saves about ,642 in interest.
Consolidating the two into a 15-year mortgage at 4.5 percent saves almost 0,000 more.
Consolidating the two into a new, 15-year mortgage at 4.5 percent costs more per month, but less over the life of the loan.