The consolidation increases the loan from $90,000 to $95,000, and the ratio of loan to value from 90% to 95%.If a 95% loan-to-value ratio remains within the lenders underwriting requirements, the consolidation will work, but if 90% is the maximum allowable ratio, it won't.But let’s be honest: Your interest rate isn’t the main problem. This specifically applies to consolidating debt through credit card balance transfers.The enticingly low interest rate is usually an introductory promotion and applies for a certain period of time only. In almost every case, you’ll have lower payments because the term of your loan is prolonged. Your goal should be to get out of debt as fast as you can!In fact, you end up paying more and staying in debt longer because of so-called consolidation.Get the facts before you consolidate or work with a settlement company.
The solution requires you to roll up your sleeves, make a plan for your money, and take action! You are only restructuring your debt, not eliminating it.You don’t need debt rearrangement, you need debt reformation.You’re in deep with credit cards, student loan debt and car loans.