As the Fed raises rates, most credit card payments will go up. If you have excellent credit, now is the time to consider consolidating your debt into a fixed rate personal loan. Most Texas banks and credit unions offer these types of loans if your debt-to-equity ratio is good. Even with good credit scores, if you are over-indebted, it can be difficult to get a low interest rate on a debt consolidation loan, even with very high credit scores.

If you can’t qualify for an unsecured loan to pay off your credit card debt, you can also look for a home equity loan. The maximum loan-to-value ratio in Texas is 80%, so you need to have plenty of equity if you’re considering this option. Since home prices have risen so much over the past two years, this option is available to many Texas homeowners. Before considering this option, make sure you will be able to comfortably pay your additional 2nd mortgage payment since you are transferring unsecured debt to your home. If you fail to make future payments on a loan secured by your home, you will eventually face foreclosure.

If none of the above options are viable, you may consider a credit counseling program to lower your current interest rates without a new loan. If you’re struggling to make your payments or have already fallen behind, a debt relief program using debt negotiation is another bankruptcy-free option. Not all debt relief programs are created equal, and some outside companies charge excessive fees from Texans. Always research a company with the Better Business Bureau and it is recommended to make sure they have offices in Texas.

Debt Redemption Texas Debt Relief is 100% veteran owned, highly rated by the BBB, and has been serving Texans for 20 years. The company provides an affiliate platform to purchase debt consolidation loans, credit counseling referrals, and a program to negotiate balance reductions. Their debt relief program is usually 20-40% less than the fees charged by out-of-state companies and the company is licensed by the state. They also assist Texans facing lawsuits against their creditors. For a free, no-obligation consultation with a Texas debt specialist, call 361-792-2900 or visit

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