Best Debt Consolidation Programs

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Best Debt Consolidation Programs

The latest applicant is looking for the best debt consolidation program for his mortgage and credit card debt. He is renewing his mortgage within the next two months and is wondering if he should also consolidate his current credit card debt at this time. Unfortunately he covered in general terms what he wanted to do on his application, however he did not provide a lot of details in terms of balances owed etc. We will have more discussion on this topic with him.

In the mean time we will try to answer his questions in general terms. Generally speaking consumers in this situation should attempt to pay all of their credit card debt off as fast as possible. If they are unable to repay their credit card debt from their general income, the next best approach is to consolidate all credit card debt with a low interest personal loan. They save a great deal of interest cost and pay their personal loan back in a relatively short amount of time.

The last approach is to consolidate all of their debt in a mortgage on their home which will in most cases provide them with the best interest rate and also the lowest monthly payment based on a longer amortization. The best debt consolidation program can therefore be different for consumers in different situations from a financial perspective.

Any time you can reduce what you owe quickly and pay less interest you can be sure that you are making the right decision. Of course consumers must manage all of their other expenses to make sure that they do not fall behind or get squeezed badly from a financial perspective. We look forward to having more discussion with this client and as brokers we are confident that our lenders can provide the best debt consolidation programs.

Home/Mortgage Loan Amount :: $125,000

Home Loan Application and Processing Speed (when do you need the funds):: in the next 2 months,  my mortgage is coming due within 2 months

Do you currently have a mortgage? :: yes

Bank Name and Branch ::Bank of San Francisco, Market street

What City/Town, State and County do you live in? :: San Francisco, California

Zip :: 94105

What is your employment field? :: Trolley operator on the famous San Francisco trolleys

Employment Position :: Trolley operator

When are you paid? (monthly/weekly/biweekly):: biweekly

Your credit rating to be – excellent, fair, or bad? :: bad credit or so I have been told

How did you find us? :: looking for the best debt consolidation programs online

How are you paid? (direct deposit/paper check):: direct deposit

Gross Amount Per Paycheck :: $2000

Do you agree to have this information published online, without your PRIVATE information of course? :: sure, no problem

Extra information here please (some detail)::Hi I am trying to figure out what the best debt consolidation program is for my situation. I have an existing mortgage that needs to be renewed in the next two months. I have already locked in my interest rate with my current mortgage lender, but I am wondering if I am getting the best deal. They offered me a discount because I am an existing customer and although I have a bad credit rating, I have never missed a payment on anything including my mortgage payment.

I have a couple of credit cards that carry a high balance and I think this is why I have a bad credit rating. I am wondering if I should refinance my existing mortgage and consolidate what I owe on the credit cards on my mortgage. What interest rate and terms can you guys offer me and what would the expenses be associated with paying out my existing mortgage and taking on a new mortgage?

As I understand it I really have four options. Renew as is with my current mortgage lender, consolidate my credit cards on a new mortgage with a new mortgage with my current lender, renew my current mortgage amount with a new lender and consolidate everything with a new lender. I need to know what the payments will be and what the interest rates will be so I can figure out what my overall cost for each scenario will be. Can you help with all of this and suggest the best debt consolidation program?

Note to Lender :: In terms of my financial situation, my home is worth far more than what I am planning to refinance the mortgage so I know I have the equity. I can handle all of the payments on my income, but I feel I can reduce the amount of interest that I am paying.

I am a trolley operator and have been with the company for the past 15 years and expect to continue to working there until I retire. We also get a COLA raise every year to keep up with inflation. I have no other debts other than the mortgage and the credit cards. The car is paid for and I do not plan on spending any other large expenditure in the near future.

Hopefully with all of this information, you can let me know what the best approach is for my situation and what I should do. I have two months to get everything finalized.


Category: Home Mortgage Loan APR 2.85% APR 4.00% APR 4.50%
Loan Principal $125,000 $125,000 $125,000
Payment Schedule Monthly Monthly Monthly
Length of Term 15 25 30
Amount to be paid $151,865.35 $187,705.57 $209,606.16
Total interest paid $26,865.35 $62,705.57 $84,606.16
Paid per installment $832.14 $617.11 $574.26