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The power of debt consolidation

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Jan 20, 2023

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Save thousands of dollars a year by consolidating your high yielding debt onto a HELOC

If you have several high-interest credit cards, you might be paying a lot more than you need to each month. Credit card companies charge high interest rates, and it can add up quickly. If you're struggling to make your minimum payments, or if your credit card balances are getting out of hand, it might make sense to consolidate your debts. There are two ways to do this: through an unsecured debt consolidation loan or a secured debt consolidation onto a HELOC. Let's take a closer look at both options!

An unsecured debt consolidation loan is a great option if you have good credit. You'll be able to get a lower interest rate, which can save you money each month. The downside is that if you don't make your payments on time, your credit score could take a hit.

A secured debt consolidation onto a HELOC is a good option if you have equity in your home. You'll be able to get a lower interest rate, and you won't have to worry about your credit score taking a hit. The downside is that if you don't make your payments on time, you could lose your home.

Both options have their pros and cons, so it's important to weigh your options carefully. If you're not sure which option is right for you, talk to a financial advisor. They can help you figure out which option will save you the most money in the long run.

No matter which option you choose, consolidating your debts can save you thousands of dollars each year. For example, if you have an interest rate on a credit card of 18% and you make the minimum payment each month, it will take you 25 years to pay off the debt. However, if you consolidate your debts into one loan with a lower interest rate on a secured HELOC of 6%, you can pay it off in just over six years and save almost $13,000 in interest!

Apply to get the Hitch HELOC today and use our debt consolidation tool to see exactly how much you could save!

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Equal Housing Lender
Hitch, Inc. 23833672158 NW Toussaint Drive. Bend, Oregon 97703

1. Qualified applicants may borrow up to 95% of their home’s value. This does not apply to investment properties.2. HELOCs have a 10-year draw period. During the draw period, the borrower is required to make monthly minimum payments, which will equal the greater of (a) $100; or (b) the total of all accrued finance charges and other charges for the monthly billing cycle. During the draw period, the monthly minimum payments may not reduce the outstanding principal balance. During the repayment period, the borrower is required to make monthly minimum payments, which will equal the greater of (a) $100; or (b) 1/240th of the outstanding balance at the end of the draw period, plus all accrued finance charges and other fees, charges, and costs.The lender will calculate this amount by taking the outstanding Account Balance on the last day of the draw period and dividing it by 240 months and then adding any finance charge that accrues but remains unpaid during the monthly billing cycle plus any other fees, charges and costs to the fixed principal payment that is due. During the repayment period, the monthly minimum payments may not, to the extent permitted by law, fully repay the principal balance outstanding on the HELOC. At the end of the repayment period, the borrower must pay any remaining outstanding balance in one full payment.3. The time it takes to get cash is measured from the time the Lending Partner receives all documents requested from the applicant and assumes the applicant’s stated income, property and title information provided in the loan application matches the requested documents and any supporting information. Most borrowers get their cash on average in 21 days. The time period calculation to get cash is based on the first 4 months of 2024 loan funding's, assumes the funds are wired, excludes weekends, and excludes the government-mandated disclosure waiting period. The amount of time it takes to get cash will vary depending on the applicant’s respective financial circumstances and the Lending Partner’s current volume of applications. Closing costs can vary from 3.0 - 5.0%. An appraisal may be required to be completed on the property in some instances.4. Not all borrowers will meet the requirements necessary to qualify. Rates and terms are subject to change based on market conditions and borrower eligibility. This offer is subject to verification of borrower qualifications, property evaluations, income verification and credit approval. This is not a commitment to lend.5. The content provided is presented for information purposes only. This is not a The content provided is presented for information purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval. Other restrictions may apply.