Debt Consolidation Equity Rate

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Find the Best Debt Consolidation Equity Loan Rate in the Event of an Unexpected Death

One would hope that when your spouse passes away, the mortgage loan would be paid completely, you would be peacefully relaxing in retirement, safe in the knowledge that you are debt free. If suddenly your husband or wife is taken away from you at an early age, your mortgage is nowhere near paid and you have debts up to your eyeballs what on earth do you do? You need to consolidate your debt and finding the best debt consolidation equity loan rate may be the answer.

The last thing you will be thinking when your partner passes away is getting your finances in order. At some point though you will have to force yourself to, before you find the debts mounting and your mortgage lender and your car loan lender start calling you incessantly. You need to inform all of your loan companies of your loss and start developing a plan of how to manage your debt before you put your home at risk of foreclosure. Here are a few ideas to help you, including finding the best debt consolidation equity loan rate.

Debt consolidation equity loan

You will probably find that the most favorable interest rate will be a debt consolidation equity loan rate. An equity loan is a secured loan that is secured against the equity you have built up on your home. The interest rates are far lower than personal loans because if you default on the loan the lender has some way of recouping the loss by foreclosing on your home. As you will be using the equity loan to pay off all other existing debts

Mortgage Refinance

Another alternative that is probably just as favorable as the debt consolidation equity loan rate is a refinance mortgage. A refinance mortgage can be used to pay off your existing mortgage and replace it with a low mortgage rate loan. You can use an option called cash out refinancing where the mortgage takes into account the equity built in your home and you can pay off your debts in that way.

Down sizing

If you still find that you will be unable to cope, even when you have researched the options for the best debt consolidation equity loan rate or the interest rate for a refinance mortgage, the next step is to consider downsizing. Although this would be a painful wrench, you may have built up enough equity in your current home to make a substantial down payment on a smaller property or even pay for it outright. You could also have enough left over to pay off all other debts such as credit cards and consumer loans, leaving you debt free.

At this time, it is wise to get a close family member or personal friend to help you with these financial matters. As you will not be focused on financial matters and grieving for the loss of your loved one, it would be all to easy to fall prey to a predatory lender who offers a good debt consolidation equity loan rate then rips you off for everything you have.