Tuesday, October 30, 2007

Equity loans in Debt Consolidation

Coming to the realization that your debt has gotten out of control is the first step toward addressing the issue. There are several options that you have to reduce your debt with debt consolidation being one of them. When considering debt consolidation, however, you should be aware that there are some debt consolidation programs that will help you with your plight and some debt consolidation plans that will hurt it.


There are several options that you can follow in your debt reduction program. First and foremost is living within your means and leaving the credit cards at home. Paying off the maximum amount due will also help. Next you might consider visiting a debt consolidation advisor and coordinator. A third option you may want to consider, and one of the more popular debt consolidation avenues, are loans, both secured and unsecured.


With a debt consolidation loan all of your debts are paid off and then carried under one loan and one interest rate. There are several types of loans to choose from with each having their plus sides and negative sides. Regardless of which loan is chosen, care should be taken so that the longer terms associated with these loan vehicles do not end up costing you more in the long run.

Equity loans

One of the better loans to consider is an equity loan. The interest rates that you will receive with this type of loan will likely be quite a bit lower than the debt that you are currently financing. Debt consolidation in this instance occurs as you pay off your outstanding debt from the highest interest rates down to the lowest interest rates while also paying off the loan. If the interest rate on your outstanding debt is higher than the equity loan it needs to be paid off. But remember, you are not out of debt just because the higher interest rate debt is gone. Debt consolidation still leaves the debt in place. It just happens to be at a lower interest rate.

Home, car and property

Using this type of loan in your debt consolidation program does not need to be confined to a second mortgage of your home. Most people do not think about their other possessions as an equity form. Your car or a second piece of property can serve as equity. Just make sure your car can run through the term of the loan and you are not taking a second loan on the property against your home.


Consolidation managers are another option to consider when you are thinking about debt consolidation. If you have gotten yourself into this fix in the first place perhaps you have other issues to think about. If this is the case having a councilor to help you with the financial aspects of the issue is a good idea. However, be sure to do your homework as a person providing a service is not likely to be doing it out of the goodness of his own heart. It will cost and it is likely that you have little to spend. If you do consolidate through this method make sure to check fees, terms and schedules.

For complete and holistic information on this topic, consult the experts at Debt Consolidation Program. There’s no better place to find out what you need to do. A simple click will get you ready answers! Do it now. Don’t wait for tomorrow. Talk to those who know best!

Sunday, October 28, 2007

Using a Debt Consolidation Counseling Service

If you have gotten to the point where your debt appears to be unmanageable, perhaps a debt consolidation counseling service is right for you. A debt consolidation counseling services offers a way to make annoying collector calls stop and have your financial situation cleared up in a relatively short period of time.

How it works

A debt consolidation service has a better understanding of how the debt process works. They understand that interest rates and debt can be negotiated down from their current levels. They also have the ability to draw the creditor to them and away from you. This is because the creditor recognizes the good faith effort going on to repay the debt. They also understand that a debt consolidation counseling company is a better group to work with, in getting their money back.

To many bills

The biggest advantage, outside of reducing your overall debt, to a debt consolidation counseling service is that you will not need to deal with the same number of bills coming to your home. Before you begin the process a good counselor will likely tell you to put the credit cards in a drawer but, generally, the process means you have fewer checks to write.

What the debt consolidation counselor does

When the debt consolidation counselor begins the process he takes an overall look at your debts. He looks at which debts are carrying the highest interest rates and which are the largest with a bit lower rate. He then gets on the phone with the creditors involved and tries to work out a plan that involves reducing the interest rate or amount of debt owed. This is possible for anybody to do, but the debt consolidation counselor has done it before and has a relationship with the creditor. Generally, a reduced rate or amount is more likely because the creditor knows that repayment is more likely with this debt consolidation counseling company.

Time line

Although it really depends upon the individual situation the average amount of time that it takes a person to get their credit issues out of the way is 20-30 years. For the most part, this is because people generally do not pay the total amount due on a revolving credit account (credit cards) or other forms of unsecured loans.

With a debt consolidation counseling company they are looking at your account from a strictly analytical point of view. What needs to be paid and to whom to get your accounts cleared in the fastest way possible and at the least cost. Again, it depends on the situation but many counseling companies indicate that the average time line for the clients to clear their debts is 3-5 years.

It is a service

Using a debt counseling service is just that, a service. As with any service there will be a fee attached. Make sure that you understand the fee structure before getting involved. The thing to remember is that you have been trying to get yourself out of the financial situation you are in with little success; having somebody dealing with it for you is probably worth the fee.

That’s just the beginning. To make an informed decision you need to find out ALL the details. You can do that at Debt Consolidation Services. Don’t delay as this could make a REAL difference in your life. Act today and reap the benefits of smart decisions.

Friday, October 5, 2007

Using Debt Consolidation to Advantage

In many instances debt consolidation carries a negative connotation. Viewed from a different perspective debt consolidation can be a very positive investment strategy that not only puts existing debts into a more manageable form but allows for positive investing.

Using several positive debt consolidation strategies can and will set your financial future up for long term success.

Using secured asset loans

Equity is one of the better ways to access investment and debt consolidation opportunities. The amount of money that has been paid toward an existing secured loan is capital waiting to be accessed for more lucrative investing strategies.

Depending on the increase in value of the secured loan collateral, the amount of capital available from an equity loan can be quite a bit more than the actual amount paid toward the original value of the secured collateral. Using this increase in value can let you take a loan against it for not only debt consolidation but for purchase of other investments.

Combining debt consolidation and investments

If an investment is part of your overall financial plan for an equity loan, perhaps a second home or piece of investment property is desired. Instead of increasing the number of bills coming to your primary residence, with the acquisition of a new investment, including a debt consolidation aspect to the overall plan can be a wise move.

Using a debt consolidation move with an investment angle will reduce the amount of interest you may be paying on bills, unsecured loans or credit cards while allowing you to make smaller, if any, payments as they may appear. In an ideal world you might be able to just file the statement away without having to make any payment or, possibly, just quarterly tax and utility payments. Ultimately this frees capital for investment.

Planning for the future
Planning for the future with a debt consolidation component included may be the way to go for retirement. Using the extra money generated from a debt consolidation move could allow you to finance the next stage of your life, at an inflation adjusted rate. As the name “investment vehicle” may imply the costs associated with an investment today will, in all likelihood, be quite a bit less then those same costs down the road. Consolidation is just a sensible way to tap into that sensibility.

Looking forward

When people think about debt consolidation they are looking backward at the financial choices they have made. This is not how consolidation should be thought about. If one were to think in a positive frame of thought, consolidation is best used as an access point for capital. It is just a different way to use the capital that you have saved. In the strictest sense what you are doing is using the length of the term to advantage. You are using current dollars for future rewards in future dollars. Thinking about it in these terms allows you to fully realize what the word investment means. Don’t let your dollars sit around in today’s dollars let them work in building value in future dollars.

When dealing with finances ensure that you consult with the right resource. Make the right decision. To find out how you can get a win-win situation log in to Debt Consolidation Online today. It’s your best resource on this topic. Hear it from the experts!