Debt Consolidation - CREDIT REPORT

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CREDIT REPORT: Debt consolidation


You may be able to lower your cost of credit by consolidating your debt through a second mortgage or a home equity line of credit. Think carefully before taking this on. These loans require your home as collateral. If you can't make the payments—or if the payments are late—you could lose your home.

The costs of these consolidation loans can add up. In addition to interest on the loan, you pay "points." Typically, one point is equal to one percent of the amount you borrow. Still, these loans may provide certain tax advantages that are not available with other kinds of credit.

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National Foundation For Consumer Credit (nfcc)National Foundation For Consumer Credit (nfcc)
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