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HSBC Debt Consolidation Loans

HSBC offers quite a few options for debt consolidation. These may include credit card balance transfer and home equity line of credit. But before we can go ahead shedding more light on these options, it sounds better to learn under what circumstances you may want to use these.

Do you really need to consolidate your loans?

The advantages of debt consolidation, as you already might know, include the following.

  • You may be able to pay off debt faster.
  • You may be able to have one convenient payment with one due date instead of several payments with different due dates.
  • You may be able to qualify for a lower rate or a better term.
  • You may be able to reduce the amount of monthly payment
  • You may be able to reduce the overall cost of your loans.

Note that some of the above benefits may nullify the others. For example, an extended term might help you reduce monthly payment, but can increase the total cost over the life of the loan. As a result, a debt consolidation loan may not be useful at all time or for everyone.

  • Your credit score has improved significantly since you have last taken your loan, making it easier for you to qualify for a better rate or term.
  • Your income has increased, enabling you to make more payments and pay off sooner.
  • Your income has decreased, causing you to look for a new loan with flexible repayment term.

How HSBC can help you consolidate your loans?

Typically, a debt consolidation loan refers to any type of loan that can help you consolidate your existing loans at a better rate and term. Lenders normally offer the following options.

  • Unsecured financing, such as personal lines and loans, and credit cards
  • Secured financing, such as home equity lines and loans, auto equity loans, and secured personal lines and loans.
  • Private student consolidation loans
  • Refinance loans, though they are typically used to replace a particular loan, usually a mortgage loan.

HSBC offers two debt consolation options – one secured and the other unsecured.

HSBC Secured Debt Consolidation Loan

If you own a home and have built significant equity, then you can apply for a home equity line of credit at HSBC Bank. A line of credit can be convenient and works like a credit card. The borrowers can draw as much as they need and replenish it with new fund to use it again.

A lower rate of interest, tax deductibility, and flexibility in accessing funds are some of the advantages with HSBC home equity loans for debt consolidation.

If you are an HSBC Premier client, then you can expect the best rate and maximum benefit. Talk with a customer service representative at 866.503.4722 for more details. Others may call at 866.731.4722.

HSBC Unsecured Debt Consolidation Loan

Using a credit card for balance transfer works excellently, if all you are looking for is a payment holiday for few months. HSBC offers at least three credit cards with 0% introductory APR on purchases and balance transfers – Advance Mastercard, Platinum Mastercard with Rewards, and Platinum Mastercard.

Depending on the card you have chosen or have qualified for, you may be offered 0% introductory APR on balance transfer for 6, 12, or 18 months. You can easily consolidate credit card debts or any other debts by transferring these to an HSBC credit card.

Please note that you can’t transfer more than your credit limit and there is a balance transfer fee applicable as well. For more information on how HSBC credit cards can help you consolidate your loans, you can call the customer service phone number 800.975.4722.

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