Available Relief Options
There are a number of options available to people seeking relief from their debt. Depending on your current financial state and credit score, some options are better or more viable than others. Devoting some time at the onset to study which is best for you can end up saving you hundreds or thousands of dollars over the course of several years.
Personal loans come in two different forms: secured and unsecured. Secured loans are backed by an asset, such as a car or home, which is used as collateral. Unsecured loans are not backed and therefore take on higher interest rates and less favorable terms for the borrower. Deciding on a personal loan usually depends on the interest rate and credit standing. They tend to be easier to obtain then other loan options and can provide the borrower with flexibility to achieve personal goals or projects.
Home Equity Loans & Lines of Credit
If you are a homeowner, there are two additional options available. A home equity loan, similar in many respects to a second mortgage, is a lump sum amount with a fixed rate. It is payed back monthly over a set period of time. A home equity line of credit, on the other hand, uses your home as collateral and allows more amount flexibility within your credit limit. The lender establishes a line of credit and limit, determined by factors like your mortgage and home value, from which to withdraw funds much like using a credit card.
Debt Relief Plans
A debt relief plan is a reorganization of debt to provide an individual with some form of relief, whether a reduction in the principal amount, extending the term length, or lowering the interest rate. Debt settlement companies have experience negotiating with creditors and in some cases can secure an agreement that foregoes interest and other fines. Debt relief plans can provide peace of mind, freeing you up to focus on the necessary financial goals in front of you and make larger goals more attainable.
For more information about these and other debt relief options, schedule a call with one of Pinnacle One Funding’s financial experts. Our advisors are committed to assisting you reach zero debt with a relief plan that is personalized to you.