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.
Options
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.
Loans
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.
Counseling
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!
Tuesday, October 30, 2007
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.
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!
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!
Friday, September 28, 2007
How to hunt for the best debt consolidation loan?
A debt consolidation loan can be a powerful answer to the huge amount of debts people are facing these days. Whether it is debt from credit cards, outstanding loan payments or medical expenses, a debt consolidation loan can certainly help in taking off the burden to an extent. However there are many lenders that offer a debt consolidation loan. How does one shop around for the best loan?
Tips to get started
There are many ways in which you can empower your first experience in shopping for a debt consolidation loan.
• Low interest rates: This should be the very first criteria you will check in a loan. The rate of interest will determine the amount of monthly payment you will need to make. It will also have a significant impact on how much money you’re going to save each month, not to mention planning for your finances.
• Know the value of your property: The secured debt consolidation loan requires you to submit some form of security – usually in the form of the existing property you have. However, before you even start looking around for a debt consolidation loan, you need to ascertain the appropriate value of your current property. This will help you negotiate for a good offer and a good amount on the loan as well.
• Never accept the first offer: This is one of the biggest mistakes people make while shopping for a debt consolidation loan. You need to look around for the best available deals in the market and find one which is best for you. Accepting the first offer is the worst thing you can do.
• Get free quotes: Every borrower is entitled to ask for a free, no obligation quote from a debt consolidation loan lender. Therefore, make sure you ask for quotes from at least 3 different lenders. This will give you a fair idea of the going rate and will also help you compare.
• How much debt to be consolidated: Before you start shopping for a debt consolidation loan, you will also need to determine the amount of existing debts you wish to consolidate. After this, you will also want to decide on the lowest amount you can take on.
• Use the Internet: The Internet can be a great place to do a comparison on various lenders for a debt consolidation loan. Most of the websites have application forms which you can fill up online itself. You can get a response in an instant as to whether you will qualify for the debt consolidation loan or not. These online lenders will also provide you with customized loans depending on your income, financial situation, goals etc. Therefore this way you can make a better informed decision as well.
• Get the help of a broker: Hiring the services of a lending broker will stand you in good stead. Typically these lenders have numerous contacts as far as lending companies go and they can help you find the best deals possible.
Debt Consolidation Home Loan
For complete and holistic information on this topic, consult the experts at Debt Consolidation Mortgage Loan. 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!
Tips to get started
There are many ways in which you can empower your first experience in shopping for a debt consolidation loan.
• Low interest rates: This should be the very first criteria you will check in a loan. The rate of interest will determine the amount of monthly payment you will need to make. It will also have a significant impact on how much money you’re going to save each month, not to mention planning for your finances.
• Know the value of your property: The secured debt consolidation loan requires you to submit some form of security – usually in the form of the existing property you have. However, before you even start looking around for a debt consolidation loan, you need to ascertain the appropriate value of your current property. This will help you negotiate for a good offer and a good amount on the loan as well.
• Never accept the first offer: This is one of the biggest mistakes people make while shopping for a debt consolidation loan. You need to look around for the best available deals in the market and find one which is best for you. Accepting the first offer is the worst thing you can do.
• Get free quotes: Every borrower is entitled to ask for a free, no obligation quote from a debt consolidation loan lender. Therefore, make sure you ask for quotes from at least 3 different lenders. This will give you a fair idea of the going rate and will also help you compare.
• How much debt to be consolidated: Before you start shopping for a debt consolidation loan, you will also need to determine the amount of existing debts you wish to consolidate. After this, you will also want to decide on the lowest amount you can take on.
• Use the Internet: The Internet can be a great place to do a comparison on various lenders for a debt consolidation loan. Most of the websites have application forms which you can fill up online itself. You can get a response in an instant as to whether you will qualify for the debt consolidation loan or not. These online lenders will also provide you with customized loans depending on your income, financial situation, goals etc. Therefore this way you can make a better informed decision as well.
• Get the help of a broker: Hiring the services of a lending broker will stand you in good stead. Typically these lenders have numerous contacts as far as lending companies go and they can help you find the best deals possible.
Debt Consolidation Home Loan
For complete and holistic information on this topic, consult the experts at Debt Consolidation Mortgage Loan. 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!
Friday, September 21, 2007
Could debt consolidation loans really be an answer to a debt free society?
In today’s age of rising costs, default rates and delinquencies, debts have risen to an all time high. In such a scenario borrowers with existing liabilities can turn to a debt consolidation loan for support. Not only does a debt consolidation loan provide a lower interest rate, it also helps to consolidate debts under one umbrella.
The rising debt scenario
On an average the interest rates of most loans have shot up drastically in the last couple of years. The booming influence of the sub-prime market coupled with the fact that borrowers are being approved without adequate screening, have led to an ever-increasing rise in borrowers – but who cannot pay up! Unable to pay up and trapped in liabilities, it’s a sorry situation for both the lender and the borrower. In such a scenario, it’s only natural that people who have large debts will want to turn to a solution that can offer them with reduced interest rates and an opportunity to consolidate these debts.
The answer in the form of debt consolidation loans
A debt consolidation loan has been formulated with one single objective in mind – to consolidate existing debts of customers, so they can lead a happier life. With more than 20 bills to be paid every month, almost every debt-ridden person yearns for a simpler solution – where he doesn’t have to keep track of 20 different payments! The answer then lies in a debt consolidation loan.
Why is a debt consolidation loan so good for debt?
Imagine a loan that offered you a lower interest rate, placed all your existing debts under their care and also provided you with extra cash? That’s the debt consolidation loan for you! It provides you with attractive interest rates that are significantly lower than existing rates, helps you place all your credit card, loan debts and medical bill expenses under the cover of this single debt consolidation loan. This can not only help you get more organized – because now you just have to pay one single bill – but you also get the entire loan amount in a lump sum. This way the debt consolidation loan also provides you with some extra cash in hand. You can use the loan amount to pay towards all your liabilities and expenses.
Miscellaneous expenses
You might need to paint your existing home, or do up your kitchen in a more modern manner. You may even want to purchase some new upholstery for your living room! The debt consolidation loan can provide you with much-needed extra cash to take care of all these miscellaneous expenses. This is something you could never have imagined earlier – when you had all those liabilities and expenses to take care of! But the debt consolidation loan makes all this possible.
Despite all the criticism and negative opinion surrounding the debt consolidation loan this is one ticket to managing debts successfully. It almost seems too good to be true especially since it offers the twin advantage of debt management as well as savings!
Debt Consolidation
That’s just the beginning. To make an informed decision you need to find out ALL the details. You can do that at Bad Credit Debt Consolidation Loan. Don’t delay as this could make a REAL difference in your life. Act today and reap the benefits of smart decisions.
The rising debt scenario
On an average the interest rates of most loans have shot up drastically in the last couple of years. The booming influence of the sub-prime market coupled with the fact that borrowers are being approved without adequate screening, have led to an ever-increasing rise in borrowers – but who cannot pay up! Unable to pay up and trapped in liabilities, it’s a sorry situation for both the lender and the borrower. In such a scenario, it’s only natural that people who have large debts will want to turn to a solution that can offer them with reduced interest rates and an opportunity to consolidate these debts.
The answer in the form of debt consolidation loans
A debt consolidation loan has been formulated with one single objective in mind – to consolidate existing debts of customers, so they can lead a happier life. With more than 20 bills to be paid every month, almost every debt-ridden person yearns for a simpler solution – where he doesn’t have to keep track of 20 different payments! The answer then lies in a debt consolidation loan.
Why is a debt consolidation loan so good for debt?
Imagine a loan that offered you a lower interest rate, placed all your existing debts under their care and also provided you with extra cash? That’s the debt consolidation loan for you! It provides you with attractive interest rates that are significantly lower than existing rates, helps you place all your credit card, loan debts and medical bill expenses under the cover of this single debt consolidation loan. This can not only help you get more organized – because now you just have to pay one single bill – but you also get the entire loan amount in a lump sum. This way the debt consolidation loan also provides you with some extra cash in hand. You can use the loan amount to pay towards all your liabilities and expenses.
Miscellaneous expenses
You might need to paint your existing home, or do up your kitchen in a more modern manner. You may even want to purchase some new upholstery for your living room! The debt consolidation loan can provide you with much-needed extra cash to take care of all these miscellaneous expenses. This is something you could never have imagined earlier – when you had all those liabilities and expenses to take care of! But the debt consolidation loan makes all this possible.
Despite all the criticism and negative opinion surrounding the debt consolidation loan this is one ticket to managing debts successfully. It almost seems too good to be true especially since it offers the twin advantage of debt management as well as savings!
Debt Consolidation
That’s just the beginning. To make an informed decision you need to find out ALL the details. You can do that at Bad Credit Debt Consolidation Loan. Don’t delay as this could make a REAL difference in your life. Act today and reap the benefits of smart decisions.
Saturday, September 15, 2007
The many dangers of a debt consolidation loan
Description: A debt consolidation loan may provide great respite for those who happen to have large existing liabilities. However getting a debt consolidation loan need not always mean savings. Nor does a debt consolidation loan truly free you from debt. Shocked? Read on to know why all that you see is not what you get!
All that glitters is not gold
For many people a debt consolidation loan implies convenience - the convenience to pay one single bill instead of 20 or 30 odd bills in a month. It also implies hassle-free consolidation of all existing liabilities under one umbrella. What’s more, if the interest rate is supposedly lower than existing ones, what could be better than a debt consolidation loan? Fact is that convenience alone is no guarantee of the fact that you will incur savings.
The interest rate
Most of the time a debt consolidation loan will promise you a lower interest rate than your current liabilities. But ever wondered why a bank would do charity to save you from debt? There is always a catch in the agreement of the debt consolidation loan. To know if the interest rate is truly lower than current rates, be sure to check interest rates on each of your existing liabilities. Then check this with the offered rate on the debt consolidation loan. If it really is lower, the next thing you need to check is if this is a promotional rate or not. Many banks will try to lure unsuspecting customers by offering a debt consolidation loan with a low interest rate. This is usually a promotional rate and ceases after the promotional period gets over. Therefore, be sure to read the fine print of the agreement very carefully to check what is the interest rate after the promotional period. Chances are the rate will be much higher than even normal rates!
Shop around
As a borrower of a debt consolidation loan only you know how risky it is to entrust all your debts with a single bank. You do not want to lose all your hard earned money, do you? So the best thing you can do is to shop around, hunt for the best deals in the market and do your own bit of research. This way you will not only learn about promotional schemes on the debt consolidation loan but also find ways to negotiate and bargain your way through. Many times credit unions tend to provide more attractive rates than banks. Be sure to check on them as well.
Unsecured debt consolidation loan
There are the secured and the unsecured varieties of a debt consolidation loan. In the unsecured variation you do not need to provide any security or collateral to the bank or credit union. This is especially useful for those who do not own any security – like for example paying guests, tenants, dependants who live with parents, as well as other such people. Repayment periods of an unsecured debt consolidation loan lie between 6 months to even 10 years.
Debt Consolidation Loan
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 Loan Online today. It’s your best resource on this topic. Hear it from the experts!
All that glitters is not gold
For many people a debt consolidation loan implies convenience - the convenience to pay one single bill instead of 20 or 30 odd bills in a month. It also implies hassle-free consolidation of all existing liabilities under one umbrella. What’s more, if the interest rate is supposedly lower than existing ones, what could be better than a debt consolidation loan? Fact is that convenience alone is no guarantee of the fact that you will incur savings.
The interest rate
Most of the time a debt consolidation loan will promise you a lower interest rate than your current liabilities. But ever wondered why a bank would do charity to save you from debt? There is always a catch in the agreement of the debt consolidation loan. To know if the interest rate is truly lower than current rates, be sure to check interest rates on each of your existing liabilities. Then check this with the offered rate on the debt consolidation loan. If it really is lower, the next thing you need to check is if this is a promotional rate or not. Many banks will try to lure unsuspecting customers by offering a debt consolidation loan with a low interest rate. This is usually a promotional rate and ceases after the promotional period gets over. Therefore, be sure to read the fine print of the agreement very carefully to check what is the interest rate after the promotional period. Chances are the rate will be much higher than even normal rates!
Shop around
As a borrower of a debt consolidation loan only you know how risky it is to entrust all your debts with a single bank. You do not want to lose all your hard earned money, do you? So the best thing you can do is to shop around, hunt for the best deals in the market and do your own bit of research. This way you will not only learn about promotional schemes on the debt consolidation loan but also find ways to negotiate and bargain your way through. Many times credit unions tend to provide more attractive rates than banks. Be sure to check on them as well.
Unsecured debt consolidation loan
There are the secured and the unsecured varieties of a debt consolidation loan. In the unsecured variation you do not need to provide any security or collateral to the bank or credit union. This is especially useful for those who do not own any security – like for example paying guests, tenants, dependants who live with parents, as well as other such people. Repayment periods of an unsecured debt consolidation loan lie between 6 months to even 10 years.
Debt Consolidation Loan
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 Loan Online today. It’s your best resource on this topic. Hear it from the experts!
Saturday, September 8, 2007
What is debt consolidation?
Wallowing in debts? There’s relief! Read up on Debt Consolidation and find out how it can help you pay of your debts at lower interest rates! It’s your window to financial freedom!
The harsh reality of economies all around the world demands that people continue to live pay check by pay check and often on credit cards offered by credit cards companies and banks. Living with debt is a common trait of our society. In fact, most people have more than just one debt that they need to clear. It is this circumstance that has given birth to the idea of debt consolidation.
The basics
Simply put, debt consolidation is the process of taking one loan so that you may pay all of or at least some parts of your other existing loans. You can do this by first pulling together all the unsecured loans that you have and then creating a single loan out of it. To be granted that new loan as part of debt consolidation you need to place collateral with the lending institute and most commonly it’s the house which is mortgaged.
The advantage
The advantage of debt consolidation is that the interest rate can often be lower than the many interests you were previously paying. This is so because the lending institute already has collateral, such as a house and hence a very low risk of losing its money even if the borrower goes bankrupt.
Research and implement
These days, you can even go online to find a variety of online services that will help you calculate the interest after debt consolidation so you know in advance if it is worth it or not. In fact, offering a “low interest rate loan” after debt consolidation is also one of the most common email scams. But here are things you can do to ensure that debt consolidation will be a safe path for you.
For example, if you are a home owner then you can take out a home equity loan. The advantage of the home equity loan is that the interest on it is tax deductible and the interests are already low to begin with. These fixed rate loans run for 15 years and have some fees in the initial process. If a person has managed to maintain a fairly good credit history, then there is the possibility of qualifying for debt consolidation through credit unions. While the interest rates might still be high, chances are they will still be lower that what you may have been paying the credit card companies. And believe it or not, many customer service agents at credit card companies actually have the authority to even reduce interest rates when speaking with you just over the phone! So sometimes, asking nicely or negotiating a better interest rate just might do the trick.
However, debt consolidation is by no means a magic wand that can salvage you from your financial crisis. Often companies that claim to take care of all your debt problems at a lowered interest rate might not be the best option. So keep a sharp eye out for conditional or hidden fees. Just keep in mind that the best way to really cut down on your debts is to cut down on all extra and unnecessary expenses while trying to clear all your dues on time.
That’s just the tip of the iceberg. We bet you want to find out more! Here’s a resource that will answer any question that you may have. Log in to
Debt Consolidation today and you could be one step closer to financial freedom! Click now and stay ahead!
The harsh reality of economies all around the world demands that people continue to live pay check by pay check and often on credit cards offered by credit cards companies and banks. Living with debt is a common trait of our society. In fact, most people have more than just one debt that they need to clear. It is this circumstance that has given birth to the idea of debt consolidation.
The basics
Simply put, debt consolidation is the process of taking one loan so that you may pay all of or at least some parts of your other existing loans. You can do this by first pulling together all the unsecured loans that you have and then creating a single loan out of it. To be granted that new loan as part of debt consolidation you need to place collateral with the lending institute and most commonly it’s the house which is mortgaged.
The advantage
The advantage of debt consolidation is that the interest rate can often be lower than the many interests you were previously paying. This is so because the lending institute already has collateral, such as a house and hence a very low risk of losing its money even if the borrower goes bankrupt.
Research and implement
These days, you can even go online to find a variety of online services that will help you calculate the interest after debt consolidation so you know in advance if it is worth it or not. In fact, offering a “low interest rate loan” after debt consolidation is also one of the most common email scams. But here are things you can do to ensure that debt consolidation will be a safe path for you.
For example, if you are a home owner then you can take out a home equity loan. The advantage of the home equity loan is that the interest on it is tax deductible and the interests are already low to begin with. These fixed rate loans run for 15 years and have some fees in the initial process. If a person has managed to maintain a fairly good credit history, then there is the possibility of qualifying for debt consolidation through credit unions. While the interest rates might still be high, chances are they will still be lower that what you may have been paying the credit card companies. And believe it or not, many customer service agents at credit card companies actually have the authority to even reduce interest rates when speaking with you just over the phone! So sometimes, asking nicely or negotiating a better interest rate just might do the trick.
However, debt consolidation is by no means a magic wand that can salvage you from your financial crisis. Often companies that claim to take care of all your debt problems at a lowered interest rate might not be the best option. So keep a sharp eye out for conditional or hidden fees. Just keep in mind that the best way to really cut down on your debts is to cut down on all extra and unnecessary expenses while trying to clear all your dues on time.
That’s just the tip of the iceberg. We bet you want to find out more! Here’s a resource that will answer any question that you may have. Log in to
Debt Consolidation today and you could be one step closer to financial freedom! Click now and stay ahead!
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