Debt consolidation is never a straightforward process. 

From researching debt consolidation plans to choosing the proper investment vehicle to implementing your plan from soup to nuts, navigating debt consolidation can be overwhelming. 

After all, debt consolidation can take several forms. Depending on your unique financial situation, there are likely several options on the table—which can make it challenging to weigh the pros and cons of each to make a confident, informed decision. 

Plus, poor credit, lack of collateral, or high debt makes securing an attractive debt consolidation plan even more difficult. 

Borrowers often turn to home equity lines of credit–or HELOCs–to access funds at a more attractive rate than traditional credit cards. But offering your home as collateral and failing to meet payment obligations is risky. 

Thankfully, there’s a new option available to those who want to consolidate their debt while paying off monthly payments with incoming royalty payments from their assets. It’s called a Mineral Line of Credit. 

Mineral Line of Credit–or MLOC–is a revolving line of credit that uses your mineral rights as the underlying collateral. It lets mineral rights owners unlock the liquidity trapped in their oil and gas interests without selling away their rights.

There are several benefits to using an Mineral Line of Credit to consolidate debt:

Lower Interest Rate

‍Like a credit card, MLOC offers lower interest rates than most traditional credit cards and other high-interest debt consolidation vehicles. In fact, the Frontlands Mineral Line of Credit is 5-10 percentage points lower than a average credit card.

Additionally, you only pay interest on the amount you use, not your total credit. This lets you use the funds you need and save the rest for a rainy day without worrying about unnecessary costs. 

Flexibility

‍MLOC is not a loan; it is a revolving line of credit. This means you decide how you use your funds within legal guardrails. 

MLOC also provides flexible repayment options to mineral rights owners. For  instance, if you receive royalty payments from productive wells on your property, you may be able to use those funds to pay your monthly MLOC payments. 

Plus, a revolving line of credit allows you to borrow funds, repay them, and borrow the same amount again and again without needing to reapply for funds the way you would for a loan. 

Access Funds Without Offering Your Home as Collateral

‍Most borrowers who wish to access an asset-backed line of credit look toward HELOCs as a solution. However, borrowers with mineral rights are in a unique position to access a revolving line of credit without offering their home as collateral—which can be seen as a risky financial decision. 

Get started with MLOC 

MLOC is a revolutionary solution for mineral owners who wish to consolidate their debt. By tapping into liquidity trapped in your oil and gas interests, MLOC lets you keep your minerals while unlocking cash. 

Find out if you qualify for MLOC by applying today.