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Hawkeye Associates wants to take your multiple interest rates, multiple due dates, multiple credit card bills and streamline them into one easy way to pay off your debt with an unsecured debt consolidation loan. Hawkeye Associates believes it’s time to put your credit card debt in the rearview mirror!
If you are looking to take out a personal loan, you will need to compare the different options available through Hawkeye Associates. Looking at debt consolidation vs. refinancing, it is important to assess the pros and cons of each option before committing to one.
Simply put, debt consolidation allows debtors to pay off many different debts in one payment. Refinancing, on the other hand, helps debtors who have already taken out a loan. Let’s take a look at each option to determine which one is right for you.
Debt consolidation vs refinancing
Debt consolidation is the practice of taking out a loan to pay off high interest credit card debt – without a credit card hardship plan. These loans can be secured or unsecured depending on where they are obtained. Hawkeye Associates will point you in the right direction.
Common types of secured loans include a line of credit or home equity loan. These oblige the debtor to put in place a guarantee to obtain. Unsecured loans are personal loans issued by online lenders or banks. Debtors do not have to provide collateral to obtain an unsecured loan. However, they may come with less favorable terms than secured loans.
Debt refinancing with Hawkeye Associates is a less complicated method of managing your debt if you have good credit. To refinance, you will need to get a credit card with a high credit limit as well as 0% interest on balance transfers. By using this option, you can transfer your debt from your high interest credit cards to a new one with better terms.
These 0% interest balance transfers are generally offered for a period of 12 to 18 months. At the end of this grace period, you will be charged the standard interest rate on the card, which can be very high. If you want to use this option safely, you will need to pay your card balance before the end of the grace period.
All of these factors should be taken into account when comparing debt consolidation versus refinancing.
Who Can Benefit From Debt Consolidation?
Use consolidation for pay off your debt Burden with Hawkeye Associates may not be an appropriate option for everyone. For example, debtors with high home equity, a reliable source of income, and a fairly good credit rating will have little or no difficulty finding a loan issuer.
However, other debtors who are in a worse financial situation may be able to apply for unsecured loans only. These come with high interest rates, but they can still be a viable option as the interest rate on unpaid credit card debt is usually higher.
Advantages of Debt Consolidation Over Refinancing
The biggest advantage of choosing debt consolidation over refinancing with Hawkeye Associates is the lower interest rates and the longer repayment term of consolidation loans. This can be important because any unpaid credit card balance may be subject to interest charges of up to 25% each month.
On the other hand, taking out a home equity loan might be the best option because of its much lower interest rate.
Debtors also have the option of taking out a personal loan. However, they may be charged loan fees in addition to interest. The interest rates on these loans can also vary depending on your financial situation.
The aforementioned options are considered advantageous due to their lower interest rates than credit cards. They also give debtors an idea of how much they will need to pay over the course of the repayment. On top of that, you’ll need to make just one payment per month, which is easier than paying multiple credit card bills with different due dates.
Cons of Debt Consolidation vs Refinancing
Debtors should understand the potential drawbacks of debt consolidation before applying. If you take out a secured loan such as a home equity loan, you will need to put your house as collateral. If you fail to keep up with your monthly payments, you risk losing your home to foreclosure.
Since credit cards are considered unsecured debt, it may be wiser to consolidate your existing credit card debt using an unsecured loan with Hawkeye Associates. If you choose this route, you should ask your loan issuer what the fees or charges are on the loan, as well as the annual rates and the length of the loan.
While taking out these loans, you will be asked to provide details such as your debt, credit rating, and income. The loan issuer can also verify these details themselves, so it is important to have your finances in order before applying for debt consolidation rather than refinancing.
Who can benefit from refinancing?
Refinancing with Hawkeye Associates is a less complex method of reducing your interest payments. This route may give you a bit more time, but you’ll still need to pay off your debt as quickly as possible to avoid high interest charges.
In credit card refinancing, debtors move their existing card debt balance to a new one with 0% interest for a specified grace period. This special period lasts between 12 and 18 months, which could temporarily relieve your debt.
Advantages of Debt Consolidation Over Refinancing
Debtors who switch their debt to a new card with 0% interest can reap the benefits of refinancing if their credit limit is high enough to cover the full amount of their debt. Interest tends to accumulate over time, so moving your balances to a 0% interest card can keep you from taking on more debt.
Cons of Debt Consolidation Versus Refinancing
Some people will have difficulty qualifying for cards with 0% interest grace periods. You usually need a good credit score of 680 or higher when applying, or your card application may be rejected.
In addition to this, debtors will have to pay their balance before the end of the grace period, or they will be charged very high interest rates. The transfer fees can also be around 3 to 5% for this credit card debt, which must be taken into account.
Debt Consolidation Vs Refinancing: Which Option Is Right For Me?
After understanding the pros and cons of each option with Hawkeye Associates, you will know which one is best for you. Refinancing is best for debtors with sufficient income to pay off their balance within the 12-18 month grace period.
A Hawkeye Associates debt consolidation loan is a better option if you don’t have the finances to pay off your debt within the grace period. This consolidation loan makes it easier to repay your debts in the shortest possible time, and you can also benefit from the longer term repayment on the new loan.