Debt Consolidation

Debt Consolidation

pexels-mikhail-nilov-6964107Here at New Horizon Mortgage, Inc., we understand the value in financial management and debt consolidation. Debt consolidation is not only a valuable tool on decreasing interest paid on various debts, it is also an important tool to improving your credit if you have major debt issues. The team at New Horizon Mortgage, Inc. is here to help guide you through the process of debt consolidation, mortgage refinancing, and building your credit and financial security. If you are in Travis, Williamson, Bexar, Comal, Guadalupe, or any Texas county, contact us today to learn more about your debt consolidation options.

Why People Choose Debt Consolidation

People have many reasons to consider debt consolidation. Student loans, high-interest credit card balances, medical bills, and high-interest personal loans are all candidates for debt consolidation. Credit card debt is often the most common as they tend to have very high interest rates and large balances can become unmanageable. A growing number of people in the United States struggle with debt. Fortunately, debt consolidation with New Horizon Mortgage, Inc. can set you on a better path. Consolidating debts has many advantages including:

  • Lowering total monthly expenses
  • Increasing cash flow
  • Improving credit score by lowering how much credit you are using
  • Increase savings
  • Lowering the stress and worry associated with debt

How to Implement Debt Consolidation

Depending on the level of credit repair you need to make, you can follow a clear set of steps to pursue debt consolidation. Follow the steps below to first outline your debts so you can make an educated decision on your financial future.

1) Understand each debt you wish to consolidate and list out its current terms; include the monthly payment amount, interest rate, and total debt due.

2) Next, total the amounts of all debts due and your total monthly payment.

3) Review your debt consolidation options including payment terms, interest rates to determine which option is going to be most effective.

Taking Out a Home Equity Loan to Consolidate Debt

Home equity loans can be one of the most effective ways to consolidate debt. Home equity is the difference between the appraised value of your home and how much you still owe on your mortgage. If you have built substantial equity in your home, you can borrow some of that equity at a very affordable rate to consolidate your debts.

Home equity loans from New Horizon Mortgage, Inc. can either be given as a lump sum at a fixed interest rate, or as a line of credit known as a Home Equity Line of Credit (HELOC). Home equity loans, either lump sum, or lines of credit, are second mortgages. Cash-out refinancing, a similar refinancing tool, replaces your existing mortgage with a new one. This is a primary difference between these similar loan types.

Home equity loans have many benefits including:

  • Large loan amounts (depending on equity)
  • Fixed rates and monthly payments
  • Longer repayment terms than other debt consolidation options
  • Low interest rates

It is important to note that home equity loans use your home as collateral, and longer repayment terms can lead to higher costs over time so be sure to speak to a trusted lender who can help you make the best decision for your debt consolidation goals.

If you are in need of debt consolidation guidance in Travis, Williamson, Bexar, Comal, Guadalupe, or nearby Texas counties, contact New Horizon Mortgage, Inc. today for a consultation. Our team of experts can help set you on the path to a better financial future.

Follow New Horizon Mortgage, Inc.


Steve Anderson NMLS #214500
New Horizon Mortgage, Inc. NMLS #209402
Texas Compliant Recovery Funding Notice

Equal Housing Otyportuniy

Contact Us

New Horizon Mortgage, Inc.
11106 West Avenue
San Antonio, TX 78213

(210) 341-5626

SAT          8AM - 5PM
SUN        12PM - 5PM