Most people, when starting look around on how to consolidate personal debt, they usually start at their bank for a regular consolidation loan. A lot of banks however are trying to get out of that type of lending as it increases their risk because they have no recourse should the borrower default. As a result, they are making it more and more difficult to qualify for those types of loans.

As an alternative, most banks are suggesting clients get a secured line of credit to consolidate debt because they know that the majority of borrowers do not pay down their debt when they have a line of credit. In fact, these borrowers tend to increase their total debt owed, usually to a point where they can only afford to service the debt and not actually pay it down. By doing this, the bank is able to keep their profits healthy while collecting interest payments from the borrowers.

Using the equity in your home can be one of the cheapest ways to consolidate debts and is probably one of the most sensible things you can do, if done properly. By "withdrawing" some of the unused equity that has accumulated as a result of rising house values, it gives you the money to payoff those high interest credit cards and consumer loans which lowers your overall monthly payments.

This can dramitcally increase your financial security.

Using our unique Debt Elimination Plan + program, we are able to help most of our client lower there monthly payments by $500 to $700, AND we are also able to show them how to cut, on average, 5 years off their mortgage and have $10,000's in savings to show for it in the end.

For example, let's say you save yourself $500/mth, a natural reaction might be to buy something because now you have extra money every month to pay the payments. A mortgage loan refinance and debt consolidation should be performed very carefully.

Check out how you can become DEBT FREE in 12 years and have $91,000+ to show for it!!!

In this case consolidating would save the homeowner $625 over 12 years. If the homeowner then invested only $400 per month it would turn into $91,875 (assuming 7.00%/yr) and still give them an extra $225 in their pocket each month.