Debt Solutions FAQ

Q: What is Debt Consolidation? A: This is when your debts are lumped together and paid off by a single new loan. A consolidation loan helps in budgeting because it requires a single monthly payment lower than the sum of the former individual debt payments. An a consolidation loan is usually at a much lower, fixed interest rate.

Q: What is home equity? A: Home equity is the current market value of a home minus the remaining mortgage balance. It is in actuality the amount of the home that you own outright, plus the appreciation of your home's value. For example, if your home is worth $200,000 and the principal balance remaining on your mortgage is $150,000, then the amount of your home that you own is $50,000. To that, add the amount that your home has increased in value since you bought it. If your home would reasonably sell for $225,000 today, that means you have $75,000 in home equity ($50,000 + 25,000 = $75,000). By using the equity in your home, you will likely qualify for a sizable line of credit against your home equity - at an interest rate that is much lower than your credit cards are charging you every month. Let Debt Solutions can help you put your home equity to work!

Q: What is a home equity loan? A: A loan or credit line that is secured by the equity the borrower has in a home.

Q: Will a debt consolidation loan hurt my credit score? A: No. A debt consolidation loan from Debt Solutions is the fastest way for you to eliminate your debt problem and get your financial house in order. The truth is that home equity is a resource laying dormant right under most people's noses. And for those who are struggling with debt from credit cards, payday loans, and other unexpected expenses like hospital stays, debt consolidation may actually help. Those old debts will appear on the books as paid in full, and the credit card companies can keep their high interest rates to themselves!

Q: What is FICO? A: Short for "Fair Isaac & Company,"a FICO score is now the most common way of computing a credit score. It claims to show the likelihood that a borrower will default on a loan. Your FICO score can be between 300 and 850, with 60% of scores landing somewhere between 650 and 799. For a fee your actual credit score, which may vary between the three reporting agencies, can be obtain from the three , which are: Equifax, Experian, and TransUnion.