Taking control of your credit cards, auto loans and other debts is a great feeling. Use your home equity for debt consolidation to enjoy low fixed interest and just one simple payment every month. You may want to consolidate debt in order to:
Lower your monthly payment and get a lower interest rate.
Combine high-interest debts into one fixed payment each month.
See how great it feels to simplify your life and get on the path to a brighter future by managing your debts.
Borrow between $25,000 - $150,000.
Deduct up to 100% of your interest on taxes (consult your tax advisor to see if you qualify).
Save money with low rates, low monthly payments, no closing costs, and no prepayment penalties.
Question answer section
Benefits: Using your equity to pay down debt can eliminate stress and worry and put you on a solid path to financial freedom on your own terms. Plus, you'll enjoy the stability of one fixed monthly payment at a fixed interest rate that's probably much lower than what you're currently paying to multiple creditors. With multiple term options, you can choose to save more or save less in interest based on the monthly payment you can afford. And you may be able to deduct up to 100% of the interest you do pay from your taxesan advantage you don't get with credit cards or personal loans (consult your tax advisor to see if you qualify).
Considerations: The relative benefits of a loan for debt consolidation depend on your individual circumstances and your actual debt payments. You will realize interest payment savings when you make monthly payments towards the new, lower interest rate loan in an amount equal to or greater than what you previously paid towards the higher rate debt(s) being consolidated. Keep in mind, though, while your monthly payments will be lower, in the long term you may pay more interest if the debt is extended over a longer period of time.
Note: No Discover Financial accounts may be paid off with this debt consolidation.