A simple debt consolidation loan would take of all these troubles. By using equity in your home all debts would be paid off and you are left with a clean slate and generally spending less money every month.

For more information please go to: http://www.goldmedalmortgage5.com/california/10/California-Debt-Consolidation-Home-Mortgage-Loan.html

One benefit to a debt consolidation loan that often overlooked is tax advantage. Interest on a home loan is tax deductible where interest on credit cards and cars are not.

Our office received a call early one morning from a man desperate to save his home and needed foreclosure help. He was already 90 days late on his mortgage and desperately needed to refinance and pull out money to pay off enormous debts.

He had just started a new job where he actually was making less money than before, and was in a real financial bind. His poor credit made it difficult for him to even qualify for a loan, let alone a low interest rate. To make matters worse, next day he received a notice of default on his property.

A consolidation loan lets you combine your federal student loans into a single loan with one monthly payment. There are two programs available for consolidating student loans:

-The Federal Family Education Loan (FFEL) Program, through which banks, secondary markets, credit unions, and other lenders provide consolidation loan

-The William D. Ford Federal Direct Loan (Direct Loan) Program, through which federal government provides consolidation loan

There are several differences between these programs, as outlined in table below:

FFEL Program

Lenders - Banks, secondary markets, and credit unions

Loans accepted - Can accept all eligible loans from eligible borrowers, but are not required.

Repayment Plans- Offers four repayment plans

-Standard Repayment Plan

-Graduated Repayment Plan

-Extended Repayment Plan

-Income - Sensitive

Repayment Plan (in which monthly payment amount is set according to borrower's income and loan debt)

Timing of consolidation

Borrowers can consolidate after they have left school and all of their loans are in grace or repayment.

Direct Loan Program

Lenders - Federal government

Loans accepted - Must accept all eligible loans from eligible borrowers

Repayment Plans - Offers four repayment plans

-Standard Repayment Plan