When it comes to debt consolidation, it's essential to carefully consider your circumstances and choose an option that aligns with your long-term financial goals–there’s no one-size-fits-all solution. However, if you do your research, you can make an informed choice regarding the best tool for your own unique situation. A popular tool that can help you manage your debt is a debt management plan, but if you need a more immediate remedy to get your finances in order, you should also consider Unison’s innovative Equity Sharing Home Loan. Learn more about each of these options below!
Debt Management Plan
A debt management plan, offered by credit counseling agencies, helps you repay unsecured debts like credit cards and medical bills. A counselor works with you to create a budget and negotiates with creditors to lower interest rates and create a manageable repayment plan. This provides structured support and can be a good option if you're facing financial hardship or want to avoid bankruptcy.
However, creditors are not obligated to participate, and fees for the service can vary. It's crucial to evaluate your financial situation, consider the costs involved, and commit to sticking to the plan for it to be successful.
What Unison Equity Sharing Home Loan Can Provide
Unison's Equity Sharing Home Loan provides a unique approach to accessing your home equity. The 10-year, interest-only second mortgage offers a lower monthly payment than traditional home financing options, empowering homeowners with the tremendous financial flexibility to save each month, and use those savings however they wish.
The Equity Sharing Home Loan utilizes both partially-deferred interest and a shared appreciation component in order to keep monthly payments more practicable for homeowners who want to increase the reach of their finances. Unison also caps both the annualized return on Unison’s share, and all forms of interest. This can be an attractive option for homeowners seeking increased cash flow and flexibility, especially with additional features like no prepayment penalties and potential adjustments for capital improvements.
Ultimately, Unison provides a pathway to potential wealth building while maintaining financial flexibility–instead of merely restructuring debt. To prepare for success, be sure to review your credit score and debt-to-income ratio, as well as plan for the balloon payment at the end of the loan, before deciding if it aligns with your long-term financial goals. If the answer is “yes,” work with one of their licensed loan officers to start your convenient, online application today!
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