- Free Consultation
- Debt Relief Programs
- About Us
A secured debt consolidation loan is a loan in which the owner pledges an asset like a car or property as security to the lender for the loan. Therefore, If you own a home, vehicle or other property, you have the option of taking out a secured loan against it.
Lenders often claim that this is the best way to eliminate your debts and that it is the best choice to maintain your credit score. While this sounds attractive, in reality, it is one of the worst decisions a person can make. Here are some things to consider:
A caller had approximately $20,000 and she was considering the CuraDebt debt relief program. Overnight she decided to check with her bank and see if they would help her since she had a property with some equity.
She called them in the morning and they offered her help with a secured consolidation loan (as a 2nd line of equity on her home). They offered her 5-year term for 25k. The increase in her debt would be from closing costs for loan origination fees. The risk would be that if she had a financial challenge and could not repay the loan, she risked foreclosure on her home.
She decided to go with the CuraDebt debt relief program for money savings, lower payment, home protection, and overall more flexibility.
The best solution, she decided, was to leave the debts where they were (on the individual credit cards) and get help (instead of getting a secured debt consolidation loan against her property).