As the Fed raises rates, most credit card payments are going to increase. If you have an excellent credit score, now is the time to consider consolidating your debt to a fixed-interest rate personal loan. Most banks and credit unions in Texas offer these types of loans if your debt-to-income ratio is good. Even with good credit scores, if you are over-leveraged you may find it difficult to obtain a low interest rate on a debt consolidation loan even with very high credit scores.
If you cannot qualify for an unsecured loan to pay off your credit card debt, you could also investigate a home-equity loan. The maximum loan-to-value in Texas is 80% so you need to have plenty of equity if you are going to consider this option. Since home prices have gone up so much in the past couple of years, this option is available to many Texas homeowners. Before considering this option, be sure that you will be able to comfortably afford your new or additional 2nd mortgage payment since you are transferring unsecured debt to your home. If you fail to make future payments to a loan secured by you home, you will eventually face foreclosure.
If neither of the above options are viable, you could consider a credit counseling program to reduce your current interest rates without a new loan. If you are struggling to make your payments or have already fallen behind, a debt relief program using debt negotiation is another non-bankruptcy option. Not all debt relief programs are created equal, and some out-of-state companies charge Texans excessive fees. Always research a company with the Better Business Bureau and it is recommended to be sure they have offices in Texas.
Debt Redemption Texas Debt Relief is 100% veteran-owned, highly rated with the BBB, and has been serving Texans for 20 years. The company provides an affiliate platform to shop debt consolidation loans, credit counseling referrals and a program to negotiate balance reductions. Their debt relief program is typically 20 to 40% less compared to the fees charged by out-of-state companies and the firm is state-licensed. They also assist Texans facing creditor lawsuits. For a free and no-obligation consultation with a Texas Debt Specialist, call 361-792-2900 or visit DebtRedemption.com
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