Debt Consolidation Solutions

by Horizon Bank on April 24, 2012

Horizon Bank offers individuals the opportunity to consolidate their debt, simplify their monthly bill paying, and, in most cases, deduct the interest from their income tax returns.

According to Mike Foti, a Consumer Loan Officer, “Individuals who are ‘drowning’ in debt often have trouble making their monthly payments. In the case where they are only paying the minimum due each month, the total interest and the time necessary to pay off the debt seem like an uphill battle.  What normally would take two years to pay off can more than double in time while the interest associated with the unpaid debt continues to escalate.”

Our staff may suggest a number of loan options to help our customers alleviate their debt problems.  One option is a Home Equity Loan, also referred to as an “equity loan” or “second mortgage.”  A Home Equity Loan – based on the difference between the homeowner’s equity and the home’s current market value – is a fixed loan amount available to help pay off your bills completely or, at least, pay off as much as possible. Most Home Equity Loans feature a fixed interest rate, which is typically substantially less than what you are currently paying on your credit card or auto loan.

Another option is a Home Equity Line of Credit – a form of revolving credit in which your home serves as collateral. Although the line of credit may be used for debt consolidation purposes, this product is best suited for long-term flexibility of borrowing and repayment.

In most cases, the interest that you are paying on your Home Equity Loan or your Home Equity Line of Credit may be fully tax deductible. Check with your tax consultant to see how Home Equity Loan interest affects your return.

In the case where a homeowner does not have enough equity in their home, which may be caused by several factors, one of which is that the market value of their home has decreased due to today’s economic climate, Our financial advisors may still be able to help with a debt consolidation solution.  A secured loan – a loan in which funds in a checking account, certificate of deposit, or other accounts that you currently hold – is one option.  In some instances, even an unsecured loan may be possible depending on your particular situation.

Foti said, “It all depends on each person’s specific situation. We explore every available option and determine what is right and what is possible to help our customers get back on their feet financially.”

Horizon Bank is currently offering a Debt Consolidation Loan Special at historically low rates of interest.

“Consolidating debt with a Home Equity Loan or another loan product from Horizon can make everyday life a lot easier…more stress free,” Foti explained. “We want consumers to know that there are solutions to help alleviate the burden of carrying too much debt, and talking with a Horizon Bank advisor is the first step to enjoying a debt-free situation.

For more information on a Home Equity Loan, Line of Credit, or any other debt consolidation product, visit the Horizon Bank near you or contact call center advisors at (219) 873-2640 or toll-free at (888) 873-2640 during normal business hours. Additional information is available by visiting www.horizonbank.com.

 

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