Denzel Rodriguez breaks down debt consolidation loans versus velocity banking strategies like lines of credit and HELOCs. Companies like National Debt Relief market lower monthly payments and rates, but origination fees and longer loan terms can cost you more overall. Lines of credit offer flexibility that fixed loans don't.
Debt consolidation combines multiple debts to one loan. And in the traditional marketing space, we will see companies like National Debt Relief kind of dominate in that. In that space where, where guys like you and me will use the term debt consolidation in our velocity banking strategy where there's these other tools that are available, such as a personal line of credit, business line of credit, home equity line of credit, first, second position, other than a traditional home equity loan or a big personal loan jumbo loan that you get in the mail instead of doing that where it's fixed tight, there's no flexibility. You can have more flexibility with lines of credits. And this is where we try to capture as many people as we can before they make that kind of move where they're just, we're just typically thinking lowest payment, lower interest rate, that'll save me more money. Ends up not being the case. When you factor in their fees, their origination fees and the duration of that loan, what you end up paying in total percentage amount of interest.
