Debt consolidation with a home equity loan can provide consumers with an effective method to eliminate debt. However, when choosing a lender to provide a home equity loan, consumers should be aware of fraudulent companies. Consumers need to shop for reputable lenders when they pursue debt consolidation. Otherwise, they face risks of becoming victims of home equity fraud.
Home equity loans allow consumers to use the money toward paying off multiple high-interest debts. Consumers save money with debt consolidation by paying lower interest rates and monthly payments. These equity loans rank among the most popular types of secured loans consumers use for debt consolidation.
However, certain companies that offer home equity loans perpetrate fraud to profit off vulnerable consumers. Among the businesses that commit home equity fraud, finance companies often approach homeowners about the benefits of using the secured loan for debt consolidation. These companies may not clearly state they use the consumer’s home as collateral.
Consumers who don’t fully comprehend the terms of their home equity loan may end up legally obligated to make monthly payments they cannot afford. Consumers pursue debt consolidation to become debt free, but with home equity fraud, they often incur another large debt.
Home equity fraud makes consolidating debt a risky method for managing debt. Consumers need to read and thoroughly understand the conditions of a loan prior to signing the form. Consumers should allow their lawyers to read any legal contracts. Consumers need to avoid home equity fraud; otherwise, they face risks of incurring more financial trouble.
Friday, August 31, 2007
Debt Consolidation Entails Risks
Debt consolidation involves many financial risks for consumers who hold low credit scores. Consumers with bad credit appear vulnerable to lenders who aim to profit at the consumer’s expense. Debt consolidation requires consumers to be aware of risks associated with specific lenders.
With debt consolidation, consumers obtain a loan and direct the proceeds toward eliminating high-interest debt. Consolidation allows consumers to pay off all types of debts, including credit cards, medical bills and personal loans. However, consumers can incur more debt by not selecting a reputable lender.
Shady lenders for consolidation loans target borrowers who hold poor credit and few options. Consumers often label these companies as predatory lenders because they seek to benefit from the most vulnerable consumers.
With these relief loans, consumers should avoid balloon payments early in the loan term. Most consumers can’t afford this large payment, and they default on the installments.
Loans can eliminate debts when consumers avoid several risky factors associated with their lender. Predatory lenders often convince consumers to borrow more money than needed to pay off debts. This situation usually leads borrowers to incur more debt and further worsen their financial siutation.
Borrowers should find reputable lenders to pay off multiple debts. Borrowers can research lenders on the Internet, and they can compare rates and programs. Borrowers save money with debt consolidation because the loan carriers a lower interest rate than the interest charged on existing debts. With debt consolidation loans, consumers should avoid balloon payments in the loan term.
Debt Consolidation Loans - Ease Yourself From Debt Problems
With the increasing number of loan options today, it has become very easy for the borrower to fall prey and make wrong decisions. Borrowing more and more loans has made debts on borrowers very common. A serious effort is needed to remove these debts and this can be aptly done through debt consolidation loans.
Debt consolidation loans are a way out of debts for the borrower. The borrower can take up debt consolidation loans to club all his debts into one and remove it altogether. The debt consolidation loans work in a very practical setup for the borrowers. All the debts of the borrowers are unified and seen as one single debt. To help remove this debt, debt consolidation loans are borrowed and this debt is paid off to the particular lenders of the borrower. This way all the previous debts of the borrower are removed and now he has to pay just one single installment instead of multiple installments.
The major benefits of debt consolidation loans are helpful to the borrower. The debt consolidation loans are borrowed at a lower rate of interest as compared to the high rates of the earlier debts. This way the borrower saves money on the interest. Also, the borrower has to pay just a single installment rather than multiple installments to different lenders. Debt consolidation loans reduce the monthly outflow of money making it comfortable for the borrower to repay.
Debt consolidation loans can be borrowed by the debtor in two ways. If he does not want to pledge collateral for the loan then unsecured debt consolidation loans are the best way for him to borrow the loan. If the borrower wants low rates and is ready to place collateral for the loan, secured debt consolidation loans can be borrowed by him.
Borrowers can opt for debt consolidation loans to solve their debt woes. All the problems can be solved with proper thought and action of the borrower for the present and the future too.
Debt consolidation loans are a way out of debts for the borrower. The borrower can take up debt consolidation loans to club all his debts into one and remove it altogether. The debt consolidation loans work in a very practical setup for the borrowers. All the debts of the borrowers are unified and seen as one single debt. To help remove this debt, debt consolidation loans are borrowed and this debt is paid off to the particular lenders of the borrower. This way all the previous debts of the borrower are removed and now he has to pay just one single installment instead of multiple installments.
The major benefits of debt consolidation loans are helpful to the borrower. The debt consolidation loans are borrowed at a lower rate of interest as compared to the high rates of the earlier debts. This way the borrower saves money on the interest. Also, the borrower has to pay just a single installment rather than multiple installments to different lenders. Debt consolidation loans reduce the monthly outflow of money making it comfortable for the borrower to repay.
Debt consolidation loans can be borrowed by the debtor in two ways. If he does not want to pledge collateral for the loan then unsecured debt consolidation loans are the best way for him to borrow the loan. If the borrower wants low rates and is ready to place collateral for the loan, secured debt consolidation loans can be borrowed by him.
Borrowers can opt for debt consolidation loans to solve their debt woes. All the problems can be solved with proper thought and action of the borrower for the present and the future too.
Thursday, August 30, 2007
How Do You Shorten Student Loans
Wouldn't you love to be able to pay a good portion of your student loans even before you leave school, which many students do not even consider while they are buried in books. It might require you to think outside the box with your student loans so you take care of your payments better than the average student.
I recently saw a study created by the National Post-Secondary Financial Program. I was not surprised to see that the results showed that nearly two-thirds of college students struggle to pay loans during school and they unfortunately graduate with a bachelor's degree and student loan debt. Then on top of that students leaving school with federal student loans have an average debt of nearly $20,000.
Wouldn't you rather put that money in a business, a car payment, or a down payment for a mortgage? I definitely would.
Even after you find an appealing student loan option and even if you take it still look for a better deal if you can. There are going to be times during your 4 years at school where you find the right loan with the right payment amounts and interest rates.
Search through the large list of non-profit and private student loans out there that are willing to offer loan consolidation that will ease your burden with debt. Be careful if you have a federal student loan because it is probable that you will see a hike in interest rates during your contract. That means more money, more payments, more interest, and more years.
The last thing you want to do is worry about more bills along with utilities, rent or a mortgage, car payments, eventually insurance of every kind, children bills, and really the list never ends. I was shocked to see all of the random payments that I didn't realize.
Student loan consolidation could help you make larger payments with fix rates and take chunks out of the principle. Where many students it could take 20-30 years, you may be able to get it done in 10 years or maybe even shorter. You will have to worry about a mortgage probably, don't make your student loan a 30 year bill too.
Consolidating student loans are possible for the Federal Family Education Loan Program (FFEL), along with credit unions, secondary markets, banks, and plenty of other lenders will provide similar options. These are all worthy alternatives for you to take a look at during your undergraduate. I know many of you students are probably already getting tired of reading, but I wouldn't recommend it if it didn't mean more cash in your wallet and more time on your watch.
You will actually find out that many federal education loans are capable of being consolidated whether they are subsidized or not. Some of these include Stafford Loans, Perkins Loans, and Federal Nursing Loans. Whatever loan you may have, make sure to check your terms to see your rights and responsibilities.
I recently saw a study created by the National Post-Secondary Financial Program. I was not surprised to see that the results showed that nearly two-thirds of college students struggle to pay loans during school and they unfortunately graduate with a bachelor's degree and student loan debt. Then on top of that students leaving school with federal student loans have an average debt of nearly $20,000.
Wouldn't you rather put that money in a business, a car payment, or a down payment for a mortgage? I definitely would.
Even after you find an appealing student loan option and even if you take it still look for a better deal if you can. There are going to be times during your 4 years at school where you find the right loan with the right payment amounts and interest rates.
Search through the large list of non-profit and private student loans out there that are willing to offer loan consolidation that will ease your burden with debt. Be careful if you have a federal student loan because it is probable that you will see a hike in interest rates during your contract. That means more money, more payments, more interest, and more years.
The last thing you want to do is worry about more bills along with utilities, rent or a mortgage, car payments, eventually insurance of every kind, children bills, and really the list never ends. I was shocked to see all of the random payments that I didn't realize.
Student loan consolidation could help you make larger payments with fix rates and take chunks out of the principle. Where many students it could take 20-30 years, you may be able to get it done in 10 years or maybe even shorter. You will have to worry about a mortgage probably, don't make your student loan a 30 year bill too.
Consolidating student loans are possible for the Federal Family Education Loan Program (FFEL), along with credit unions, secondary markets, banks, and plenty of other lenders will provide similar options. These are all worthy alternatives for you to take a look at during your undergraduate. I know many of you students are probably already getting tired of reading, but I wouldn't recommend it if it didn't mean more cash in your wallet and more time on your watch.
You will actually find out that many federal education loans are capable of being consolidated whether they are subsidized or not. Some of these include Stafford Loans, Perkins Loans, and Federal Nursing Loans. Whatever loan you may have, make sure to check your terms to see your rights and responsibilities.
Avoid Payday Loans For Debt Consolidation
Debt consolidation harms consumers’ financial situation when they make bad choices and obtain a risky loan. Among the worst loans consumers use for debt consolidation, payday loans often lead to more debt.
Consumers can reduce the interest rate on existing debt through consolidation services. Consumers accomplish debt consolidation when they obtain a loan carrying a low rate. When deciding on a loan, consumers should consider the monthly payment in relation to their budget, ensuring they can afford the loan payments.
Payday loans issue money against a paycheck, and consumers may use this financial tool for consolidation. The borrower receives the money and uses it to pay off all debts, and then the payday lender becomes the borrower’s only creditor.
Borrowers obtain a payday loan by writing a postdated check for the debt amount, plus a fee. The payday lender holds the check until the borrower receives a paycheck. On payday, the borrow takes cash to the lender in exchange for the postdated check, or the lender deposits the check.
This method of debt consolidation harms borrowers when they cannot pay back the loan following the two-week period. When borrowers ask the lender to hold the loan for another period, they pay a second round of fees and the loan rolls over.
Eliminating debts can help consumers relieve financial problems, but payday loans often create more debt. Consumer can seek other methods of debt relief, such as a personal loan or a home equity loan. The goal of consolidation involves helping consumers reduce the interest rate on existing debt.
Consumers can reduce the interest rate on existing debt through consolidation services. Consumers accomplish debt consolidation when they obtain a loan carrying a low rate. When deciding on a loan, consumers should consider the monthly payment in relation to their budget, ensuring they can afford the loan payments.
Payday loans issue money against a paycheck, and consumers may use this financial tool for consolidation. The borrower receives the money and uses it to pay off all debts, and then the payday lender becomes the borrower’s only creditor.
Borrowers obtain a payday loan by writing a postdated check for the debt amount, plus a fee. The payday lender holds the check until the borrower receives a paycheck. On payday, the borrow takes cash to the lender in exchange for the postdated check, or the lender deposits the check.
This method of debt consolidation harms borrowers when they cannot pay back the loan following the two-week period. When borrowers ask the lender to hold the loan for another period, they pay a second round of fees and the loan rolls over.
Eliminating debts can help consumers relieve financial problems, but payday loans often create more debt. Consumer can seek other methods of debt relief, such as a personal loan or a home equity loan. The goal of consolidation involves helping consumers reduce the interest rate on existing debt.
Avoiding Home Equity Fraud in Debt Consolidation
Debt consolidation with a home equity loan can provide consumers with an effective method to eliminate debt. However, when choosing a lender to provide a home equity loan, consumers should be aware of fraudulent companies. Consumers need to shop for reputable lenders when they pursue debt consolidation. Otherwise, they face risks of becoming victims of home equity fraud.
Home equity loans allow consumers to use the money toward paying off multiple high-interest debts. Consumers save money with debt consolidation by paying lower interest rates and monthly payments. These equity loans rank among the most popular types of secured loans consumers use for debt consolidation.
However, certain companies that offer home equity loans perpetrate fraud to profit off vulnerable consumers. Among the businesses that commit home equity fraud, finance companies often approach homeowners about the benefits of using the secured loan for debt consolidation. These companies may not clearly state they use the consumer’s home as collateral.
Consumers who don’t fully comprehend the terms of their home equity loan may end up legally obligated to make monthly payments they cannot afford. Consumers pursue debt consolidation to become debt free, but with home equity fraud, they often incur another large debt.
Home equity fraud makes consolidating debt a risky method for managing debt. Consumers need to read and thoroughly understand the conditions of a loan prior to signing the form. Consumers should allow their lawyers to read any legal contracts. Consumers need to avoid home equity fraud; otherwise, they face risks of incurring more financial trouble.
Home equity loans allow consumers to use the money toward paying off multiple high-interest debts. Consumers save money with debt consolidation by paying lower interest rates and monthly payments. These equity loans rank among the most popular types of secured loans consumers use for debt consolidation.
However, certain companies that offer home equity loans perpetrate fraud to profit off vulnerable consumers. Among the businesses that commit home equity fraud, finance companies often approach homeowners about the benefits of using the secured loan for debt consolidation. These companies may not clearly state they use the consumer’s home as collateral.
Consumers who don’t fully comprehend the terms of their home equity loan may end up legally obligated to make monthly payments they cannot afford. Consumers pursue debt consolidation to become debt free, but with home equity fraud, they often incur another large debt.
Home equity fraud makes consolidating debt a risky method for managing debt. Consumers need to read and thoroughly understand the conditions of a loan prior to signing the form. Consumers should allow their lawyers to read any legal contracts. Consumers need to avoid home equity fraud; otherwise, they face risks of incurring more financial trouble.
Wednesday, August 29, 2007
Debt Consolidation Entails Risks
Debt consolidation involves many financial risks for consumers who hold low credit scores. Consumers with bad credit appear vulnerable to lenders who aim to profit at the consumer’s expense. Debt consolidation requires consumers to be aware of risks associated with specific lenders.
With debt consolidation, consumers obtain a loan and direct the proceeds toward eliminating high-interest debt. Consolidation allows consumers to pay off all types of debts, including credit cards, medical bills and personal loans. However, consumers can incur more debt by not selecting a reputable lender.
Shady lenders for consolidation loans target borrowers who hold poor credit and few options. Consumers often label these companies as predatory lenders because they seek to benefit from the most vulnerable consumers.
With these relief loans, consumers should avoid balloon payments early in the loan term. Most consumers can’t afford this large payment, and they default on the installments.
Loans can eliminate debts when consumers avoid several risky factors associated with their lender. Predatory lenders often convince consumers to borrow more money than needed to pay off debts. This situation usually leads borrowers to incur more debt and further worsen their financial siutation.
Borrowers should find reputable lenders to pay off multiple debts. Borrowers can research lenders on the Internet, and they can compare rates and programs. Borrowers save money with debt consolidation because the loan carriers a lower interest rate than the interest charged on existing debts. With debt consolidation loans, consumers should avoid balloon payments in the loan term.
With debt consolidation, consumers obtain a loan and direct the proceeds toward eliminating high-interest debt. Consolidation allows consumers to pay off all types of debts, including credit cards, medical bills and personal loans. However, consumers can incur more debt by not selecting a reputable lender.
Shady lenders for consolidation loans target borrowers who hold poor credit and few options. Consumers often label these companies as predatory lenders because they seek to benefit from the most vulnerable consumers.
With these relief loans, consumers should avoid balloon payments early in the loan term. Most consumers can’t afford this large payment, and they default on the installments.
Loans can eliminate debts when consumers avoid several risky factors associated with their lender. Predatory lenders often convince consumers to borrow more money than needed to pay off debts. This situation usually leads borrowers to incur more debt and further worsen their financial siutation.
Borrowers should find reputable lenders to pay off multiple debts. Borrowers can research lenders on the Internet, and they can compare rates and programs. Borrowers save money with debt consolidation because the loan carriers a lower interest rate than the interest charged on existing debts. With debt consolidation loans, consumers should avoid balloon payments in the loan term.
Monday, August 27, 2007
Avoiding Home Equity Fraud in Debt Consolidation
Debt consolidation with a home equity loan can provide consumers with an effective method to eliminate debt. However, when choosing a lender to provide a home equity loan, consumers should be aware of fraudulent companies. Consumers need to shop for reputable lenders when they pursue debt consolidation. Otherwise, they face risks of becoming victims of home equity fraud.
Home equity loans allow consumers to use the money toward paying off multiple high-interest debts. Consumers save money with debt consolidation by paying lower interest rates and monthly payments. These equity loans rank among the most popular types of secured loans consumers use for debt consolidation.
However, certain companies that offer home equity loans perpetrate fraud to profit off vulnerable consumers. Among the businesses that commit home equity fraud, finance companies often approach homeowners about the benefits of using the secured loan for debt consolidation. These companies may not clearly state they use the consumer’s home as collateral.
Consumers who don’t fully comprehend the terms of their home equity loan may end up legally obligated to make monthly payments they cannot afford. Consumers pursue debt consolidation to become debt free, but with home equity fraud, they often incur another large debt.
Home equity fraud makes consolidating debt a risky method for managing debt. Consumers need to read and thoroughly understand the conditions of a loan prior to signing the form. Consumers should allow their lawyers to read any legal contracts. Consumers need to avoid home equity fraud; otherwise, they face risks of incurring more financial trouble.
Home equity loans allow consumers to use the money toward paying off multiple high-interest debts. Consumers save money with debt consolidation by paying lower interest rates and monthly payments. These equity loans rank among the most popular types of secured loans consumers use for debt consolidation.
However, certain companies that offer home equity loans perpetrate fraud to profit off vulnerable consumers. Among the businesses that commit home equity fraud, finance companies often approach homeowners about the benefits of using the secured loan for debt consolidation. These companies may not clearly state they use the consumer’s home as collateral.
Consumers who don’t fully comprehend the terms of their home equity loan may end up legally obligated to make monthly payments they cannot afford. Consumers pursue debt consolidation to become debt free, but with home equity fraud, they often incur another large debt.
Home equity fraud makes consolidating debt a risky method for managing debt. Consumers need to read and thoroughly understand the conditions of a loan prior to signing the form. Consumers should allow their lawyers to read any legal contracts. Consumers need to avoid home equity fraud; otherwise, they face risks of incurring more financial trouble.
Debt Consolidation Entails Risks
Debt consolidation involves many financial risks for consumers who hold low credit scores. Consumers with bad credit appear vulnerable to lenders who aim to profit at the consumer’s expense. Debt consolidation requires consumers to be aware of risks associated with specific lenders.
With debt consolidation, consumers obtain a loan and direct the proceeds toward eliminating high-interest debt. Consolidation allows consumers to pay off all types of debts, including credit cards, medical bills and personal loans. However, consumers can incur more debt by not selecting a reputable lender.
Shady lenders for consolidation loans target borrowers who hold poor credit and few options. Consumers often label these companies as predatory lenders because they seek to benefit from the most vulnerable consumers.
With these relief loans, consumers should avoid balloon payments early in the loan term. Most consumers can’t afford this large payment, and they default on the installments.
Loans can eliminate debts when consumers avoid several risky factors associated with their lender. Predatory lenders often convince consumers to borrow more money than needed to pay off debts. This situation usually leads borrowers to incur more debt and further worsen their financial siutation.
Borrowers should find reputable lenders to pay off multiple debts. Borrowers can research lenders on the Internet, and they can compare rates and programs. Borrowers save money with debt consolidation because the loan carriers a lower interest rate than the interest charged on existing debts. With debt consolidation loans, consumers should avoid balloon payments in the loan term.
With debt consolidation, consumers obtain a loan and direct the proceeds toward eliminating high-interest debt. Consolidation allows consumers to pay off all types of debts, including credit cards, medical bills and personal loans. However, consumers can incur more debt by not selecting a reputable lender.
Shady lenders for consolidation loans target borrowers who hold poor credit and few options. Consumers often label these companies as predatory lenders because they seek to benefit from the most vulnerable consumers.
With these relief loans, consumers should avoid balloon payments early in the loan term. Most consumers can’t afford this large payment, and they default on the installments.
Loans can eliminate debts when consumers avoid several risky factors associated with their lender. Predatory lenders often convince consumers to borrow more money than needed to pay off debts. This situation usually leads borrowers to incur more debt and further worsen their financial siutation.
Borrowers should find reputable lenders to pay off multiple debts. Borrowers can research lenders on the Internet, and they can compare rates and programs. Borrowers save money with debt consolidation because the loan carriers a lower interest rate than the interest charged on existing debts. With debt consolidation loans, consumers should avoid balloon payments in the loan term.
Debt Consolidation Loans - Ease Yourself From Debt Problems
With the increasing number of loan options today, it has become very easy for the borrower to fall prey and make wrong decisions. Borrowing more and more loans has made debts on borrowers very common. A serious effort is needed to remove these debts and this can be aptly done through debt consolidation loans.
Debt consolidation loans are a way out of debts for the borrower. The borrower can take up debt consolidation loans to club all his debts into one and remove it altogether. The debt consolidation loans work in a very practical setup for the borrowers. All the debts of the borrowers are unified and seen as one single debt. To help remove this debt, debt consolidation loans are borrowed and this debt is paid off to the particular lenders of the borrower. This way all the previous debts of the borrower are removed and now he has to pay just one single installment instead of multiple installments.
The major benefits of debt consolidation loans are helpful to the borrower. The debt consolidation loans are borrowed at a lower rate of interest as compared to the high rates of the earlier debts. This way the borrower saves money on the interest. Also, the borrower has to pay just a single installment rather than multiple installments to different lenders. Debt consolidation loans reduce the monthly outflow of money making it comfortable for the borrower to repay.
Debt consolidation loans can be borrowed by the debtor in two ways. If he does not want to pledge collateral for the loan then unsecured debt consolidation loans are the best way for him to borrow the loan. If the borrower wants low rates and is ready to place collateral for the loan, secured debt consolidation loans can be borrowed by him.
Borrowers can opt for debt consolidation loans to solve their debt woes. All the problems can be solved with proper thought and action of the borrower for the present and the future too.
Debt consolidation loans are a way out of debts for the borrower. The borrower can take up debt consolidation loans to club all his debts into one and remove it altogether. The debt consolidation loans work in a very practical setup for the borrowers. All the debts of the borrowers are unified and seen as one single debt. To help remove this debt, debt consolidation loans are borrowed and this debt is paid off to the particular lenders of the borrower. This way all the previous debts of the borrower are removed and now he has to pay just one single installment instead of multiple installments.
The major benefits of debt consolidation loans are helpful to the borrower. The debt consolidation loans are borrowed at a lower rate of interest as compared to the high rates of the earlier debts. This way the borrower saves money on the interest. Also, the borrower has to pay just a single installment rather than multiple installments to different lenders. Debt consolidation loans reduce the monthly outflow of money making it comfortable for the borrower to repay.
Debt consolidation loans can be borrowed by the debtor in two ways. If he does not want to pledge collateral for the loan then unsecured debt consolidation loans are the best way for him to borrow the loan. If the borrower wants low rates and is ready to place collateral for the loan, secured debt consolidation loans can be borrowed by him.
Borrowers can opt for debt consolidation loans to solve their debt woes. All the problems can be solved with proper thought and action of the borrower for the present and the future too.
Wednesday, August 22, 2007
Bad Credit Debt Consolidation Loans to Fix Debt Constraint
Bad credit is a typical problem of today’s world and this comes mainly as a result of debt kind of actions of the people. If you take numbers of debt and don’t have the capacity to repay them timely, you can’t help but having bad credit rating. However, as there are problems, there are ways too. There are bad credit debt consolidation loans to let you peel the bad credit off your skin.
Bad credit debt consolidation loans are the loans particularly made for the bad credit holders. This is actually a stint we get whenever we fail to repay the debt on time or make a late repayment. So, bad credit is somehow related to the inability to repay the debt. Well, here come the bad credit debt consolidation loans which act as the reformer and fixer of this bad credit stint.
Since most of our debt burden is the result of having multiple debts, bad credit debt consolidation loans give a viable way out to fix this multiple-debt problem. Multiple debts mean that there will be a number of interest rates too. So, that makes the problem and bad credit debt consolidation loans here come to save you through offers of single loans. Bad credit debt consolidation loans offer you to combine and pay off all the existing debts through single loans to be paid again, with single interest rates. Single interest rate is always than paying a number of rates for different loans. So, debt consolidation loan works and with them, you can surely fight back the bad credit rating.
However, bad credit debt consolidation loans are the loans for everyone and these are available both in the formats of secured as well as unsecured. You can pledge your collateral in the secured bad credit debt consolidation loans to yield cheap loans or if you have any problem in the collateral attachment, you can take unsecured bad credit debt consolidation loans.
These loans are available again, online, where anything is bound to be fast as well as cheap enough because, borrowers have more and easier choices there.
Bad credit debt consolidation loans are the loans particularly made for the bad credit holders. This is actually a stint we get whenever we fail to repay the debt on time or make a late repayment. So, bad credit is somehow related to the inability to repay the debt. Well, here come the bad credit debt consolidation loans which act as the reformer and fixer of this bad credit stint.
Since most of our debt burden is the result of having multiple debts, bad credit debt consolidation loans give a viable way out to fix this multiple-debt problem. Multiple debts mean that there will be a number of interest rates too. So, that makes the problem and bad credit debt consolidation loans here come to save you through offers of single loans. Bad credit debt consolidation loans offer you to combine and pay off all the existing debts through single loans to be paid again, with single interest rates. Single interest rate is always than paying a number of rates for different loans. So, debt consolidation loan works and with them, you can surely fight back the bad credit rating.
However, bad credit debt consolidation loans are the loans for everyone and these are available both in the formats of secured as well as unsecured. You can pledge your collateral in the secured bad credit debt consolidation loans to yield cheap loans or if you have any problem in the collateral attachment, you can take unsecured bad credit debt consolidation loans.
These loans are available again, online, where anything is bound to be fast as well as cheap enough because, borrowers have more and easier choices there.
Credit Card Debt Management- Improves Your Present And Future
Carrying a credit card is a good privilege to avail as it helps the borrowers in making their purchases on credit. But the problem arises when we start using the credit card more than our ability to repay. This leads to unpaid debts of the borrower. To tackle this situation, credit card debt management can be availed.
Credit card debt management helps in managing the unpaid debts that have been created due to the uncontrolled expenditure through a credit card. All the unpaid credit card debts are removed with assistance from credit card debt management.
Through credit card debt management, a loan can be taken up which pays off all the debts that are owed by the borrower. This loan is borrowed at a rate which is lower than the rate of interest on the credit card debts. This way the borrower saves money also, along with clearance of these debts. If the person has debts of more than one credit card, this debt consolidation loan helps him get rid of multiple lenders and repay the loan to only one lender.
Along with the clearing of debts, credit card debt management also provides advice to the borrower as to how he should go about the usage of the credit card in the future. Special care should be taken by the borrower about this aspect as he should not get stuck in a similar situation.
While availing credit card debt consolidation, the debtor should take care that he is seeking advice from a lender or an agency which has a good reputation in the market. for this, he can research online for credit card debt consolidation. Many lenders and advisory agencies are available online which solve the purpose of the borrower.
Bad credit is not an obstacle in availing credit card debt management advice. They can research online and get low rate loans too, for the consolidation of their credit card debts.
Credit card debt management is a very helpful tool which removes all the debt worries of the borrowers and advises them for the future also.
Credit card debt management helps in managing the unpaid debts that have been created due to the uncontrolled expenditure through a credit card. All the unpaid credit card debts are removed with assistance from credit card debt management.
Through credit card debt management, a loan can be taken up which pays off all the debts that are owed by the borrower. This loan is borrowed at a rate which is lower than the rate of interest on the credit card debts. This way the borrower saves money also, along with clearance of these debts. If the person has debts of more than one credit card, this debt consolidation loan helps him get rid of multiple lenders and repay the loan to only one lender.
Along with the clearing of debts, credit card debt management also provides advice to the borrower as to how he should go about the usage of the credit card in the future. Special care should be taken by the borrower about this aspect as he should not get stuck in a similar situation.
While availing credit card debt consolidation, the debtor should take care that he is seeking advice from a lender or an agency which has a good reputation in the market. for this, he can research online for credit card debt consolidation. Many lenders and advisory agencies are available online which solve the purpose of the borrower.
Bad credit is not an obstacle in availing credit card debt management advice. They can research online and get low rate loans too, for the consolidation of their credit card debts.
Credit card debt management is a very helpful tool which removes all the debt worries of the borrowers and advises them for the future also.
Make Your Life Easier With A Private Student Loan Consolidation
School is out, you have your diploma, now it's time to start considering repayment of all those student loans that you took out while achieving your higher education goals. Whether you have two loans or five, it's a good idea to consolidate to make life easier for yourself. Consolidating loans enables you to combine all those debts, achieve one interest rate, one payment and write one check. Consolidating a student loan will more than likely offer you a lower interest rate, a longer repayment schedule and lower monthly payments. Writing one check each month also makes bill paying easier and reduces the chance of missing a payment or getting behind while you're trying to juggle all of them at the same time.
Student loans don't need to be repaid until after you have completed your education, but it's a good idea to get a jump-start and devise a plan to start repaying those student loans before you have to. Lowering monthly payments makes life a little easier when times are tough, but you should always try to pay more than the minimum balance due on any type of loan to save yourself hundreds, if not thousands, of dollars. At the same time, having a lower monthly payment to repay those student loans leaves you money to pay for that car you need to take you to that new job, or save a mortgage or rent payment when you're still trying to get your career on track.
One of the greatest benefits of a private student loan consolidation is that you will be the happy owner of a fixed rate of interest. Many loan interest rates fluctuate with the times, but with a fixed rate, your interest payments will stay the same month after month. Such rates will, of course, depend on the amount of the total loans combined, your current interest rate and how long you want to finance your repayment terms. Some businesses and banks allow you to request a certain repayment period of between 3 to 5 to 7 years, but depending on your loan amounts, this may be extended to a 10-year repayment plan or even longer.
Many different types of private student loans can be consolidated, including but not limited to Health Professions loans, Nursing Student loans, Stafford and Perkins loans as well as PLUS, NDSL and HEAL loans. Always check to make sure you know which kinds of loans you currently have before going to see a lender to consolidate, and have your account numbers, loan balances and interest rate information handy. Always look around and find at least two to three lenders that you feel you might be able to work with in order to find the best interest rates for your consolidation needs. Whether you have graduated or not, it's a good idea to have a repayment plan in place before you graduate so that you can work repayment loans into your monthly living expenses. Don't wait until the last minute to start repaying loans, and don't waste time and money paying high interest rates when you can take a few hours, or even a few days, finding a lender that will allow you to consolidate.
Student loans don't need to be repaid until after you have completed your education, but it's a good idea to get a jump-start and devise a plan to start repaying those student loans before you have to. Lowering monthly payments makes life a little easier when times are tough, but you should always try to pay more than the minimum balance due on any type of loan to save yourself hundreds, if not thousands, of dollars. At the same time, having a lower monthly payment to repay those student loans leaves you money to pay for that car you need to take you to that new job, or save a mortgage or rent payment when you're still trying to get your career on track.
One of the greatest benefits of a private student loan consolidation is that you will be the happy owner of a fixed rate of interest. Many loan interest rates fluctuate with the times, but with a fixed rate, your interest payments will stay the same month after month. Such rates will, of course, depend on the amount of the total loans combined, your current interest rate and how long you want to finance your repayment terms. Some businesses and banks allow you to request a certain repayment period of between 3 to 5 to 7 years, but depending on your loan amounts, this may be extended to a 10-year repayment plan or even longer.
Many different types of private student loans can be consolidated, including but not limited to Health Professions loans, Nursing Student loans, Stafford and Perkins loans as well as PLUS, NDSL and HEAL loans. Always check to make sure you know which kinds of loans you currently have before going to see a lender to consolidate, and have your account numbers, loan balances and interest rate information handy. Always look around and find at least two to three lenders that you feel you might be able to work with in order to find the best interest rates for your consolidation needs. Whether you have graduated or not, it's a good idea to have a repayment plan in place before you graduate so that you can work repayment loans into your monthly living expenses. Don't wait until the last minute to start repaying loans, and don't waste time and money paying high interest rates when you can take a few hours, or even a few days, finding a lender that will allow you to consolidate.
Monday, August 20, 2007
College Loan Consolidation - You Solution To Student Loan Payback
For those students wishing to get a college education who do not qualify for scholarships and who cannot work or who can’t work enough to cover their college expenses, student loans can provide an answer. While borrowing money is never the ideal way to pay for anything, there are hundreds of thousands of people for whom a college education would have remained out of reach were it not for student loans. Even state colleges and universities can cost state residents upwards of $15,000 per year.
While student loans may clear the path to a college degree for you, you will eventually come to the end of that path and have to start repaying the loans. You’ll also be at the beginning of your career, and probably have the expenses associated with setting up housekeeping on your own, funding your own transportation, and managing all your own finances. Your starting salary may barely get the living essentials covered, and having those student loans hanging over you can keep you struggling for a very long time.
Benefits Of College Loan Consolidation
But there is help. College loan consolidation is one method of reducing the financial burden of those student loans. College loan consolidation will allow you to take out a single large loan with which you can pay off all your student loans, so that instead of having to make several payments each month, you only need to make one. And you may find that the monthly payment on your college loan consolidation is less than the total of those for your student loans.
While student loans may clear the path to a college degree for you, you will eventually come to the end of that path and have to start repaying the loans. You’ll also be at the beginning of your career, and probably have the expenses associated with setting up housekeeping on your own, funding your own transportation, and managing all your own finances. Your starting salary may barely get the living essentials covered, and having those student loans hanging over you can keep you struggling for a very long time.
Benefits Of College Loan Consolidation
But there is help. College loan consolidation is one method of reducing the financial burden of those student loans. College loan consolidation will allow you to take out a single large loan with which you can pay off all your student loans, so that instead of having to make several payments each month, you only need to make one. And you may find that the monthly payment on your college loan consolidation is less than the total of those for your student loans.
Top Cash Advance Loan Online
Need extra money to hold you over until your next paycheck? you may want to consider applying for a pay day loan online. If you have access to a computer, you can secure a payday loan online without a credit check, you may not even need to physically contact the loan company.
Having bad credit does not disqualify you from a pay day loan and you can have the amount deposited in your checking account in as little time as the same day! Anyone with a checking account and steady income may be eligible for a directly deposited loan of $1000 or even more.
** One should opt for pay day loans only to satisfy his short-term financial needs and it should not be made a regular practice **
Payday loans should only be used in emergencies, as the fees charged for these loans can be much higher than traditional bank loans. Continuously borrowing against your paycheck or extending your pay off date can make pay day loans costly. If the right choice for you is a short term pay day loan, you may be approved and have up to $1000.00 deposited into your checking account often as soon as the same day of your application.
The interest rates will differ - company to company - on pay day loans. Discounted rates on loans are often available for new or returning customers. Once the lender company has the required data from you, approval may take only minutes and receipt of the loan only hours. Some lenders require copies of a bank statement and/or paycheck stub (usually by fax); but you can still get money quickly.
Poor credit or the absence of credit do not prevent approval of pay day loans. Only your information will be verified; your credit will not be checked.
Lender companies will only contact your employer to verify employment, and do not check your credit report. Approval of application is granted quickly by the Online lenders and you will have the cash the same day as of approval.
Having bad credit does not disqualify you from a pay day loan and you can have the amount deposited in your checking account in as little time as the same day! Anyone with a checking account and steady income may be eligible for a directly deposited loan of $1000 or even more.
** One should opt for pay day loans only to satisfy his short-term financial needs and it should not be made a regular practice **
Payday loans should only be used in emergencies, as the fees charged for these loans can be much higher than traditional bank loans. Continuously borrowing against your paycheck or extending your pay off date can make pay day loans costly. If the right choice for you is a short term pay day loan, you may be approved and have up to $1000.00 deposited into your checking account often as soon as the same day of your application.
The interest rates will differ - company to company - on pay day loans. Discounted rates on loans are often available for new or returning customers. Once the lender company has the required data from you, approval may take only minutes and receipt of the loan only hours. Some lenders require copies of a bank statement and/or paycheck stub (usually by fax); but you can still get money quickly.
Poor credit or the absence of credit do not prevent approval of pay day loans. Only your information will be verified; your credit will not be checked.
Lender companies will only contact your employer to verify employment, and do not check your credit report. Approval of application is granted quickly by the Online lenders and you will have the cash the same day as of approval.
Communication Is The Key To Effective Debt Management
Whilst it can be hard to admit that things aren't going great for you at the moment, telling this to you financial institution could have a very positive outcome, both for you and for them.
Human nature tends to dictate to us that when you get badly into to debt, not to let anybody know that you are in need of help. When it comes to debt management, not only do you badly need help, but you also need to communicate with your creditors if you want to get out of debt.
The underlying principle of any organisation lending money is to have as few bad debts (debts that will never be repaid) as possible. It is this fact that is your greatest asset in working with them to come up with a viable strategy to help you repay the debt.
Many people may doubt this thinking that the financial institution will just pass the debt onto their debt collection agency, however you need to remember that these agencies literally buy the debt usually for 50% of its actual worth. It is of course in the financial institution's best interest to recover the entire debt, not just 50% of it!
First you must talk to each of your creditors and explain to them your current situation, and also let them know about all the other debts you have outstanding and that you want to work towards paying them all off. Most financial institutions will be happy to work towards a payment plan that may be quite reasonable, even as low as $5 per month over a 10 year period.
If you can put in a lump sum up front, even a couple of hundred dollars, this will go a long way to reassuring them that you are genuine and will encourage them to work with you.
Once you are on a payment plan it is imperative that you stick to it. If things change for you, contact your creditors immediately and let them know. By keeping communications open it will reassure them that you are taking control and not just ignoring the problem.
Human nature tends to dictate to us that when you get badly into to debt, not to let anybody know that you are in need of help. When it comes to debt management, not only do you badly need help, but you also need to communicate with your creditors if you want to get out of debt.
The underlying principle of any organisation lending money is to have as few bad debts (debts that will never be repaid) as possible. It is this fact that is your greatest asset in working with them to come up with a viable strategy to help you repay the debt.
Many people may doubt this thinking that the financial institution will just pass the debt onto their debt collection agency, however you need to remember that these agencies literally buy the debt usually for 50% of its actual worth. It is of course in the financial institution's best interest to recover the entire debt, not just 50% of it!
First you must talk to each of your creditors and explain to them your current situation, and also let them know about all the other debts you have outstanding and that you want to work towards paying them all off. Most financial institutions will be happy to work towards a payment plan that may be quite reasonable, even as low as $5 per month over a 10 year period.
If you can put in a lump sum up front, even a couple of hundred dollars, this will go a long way to reassuring them that you are genuine and will encourage them to work with you.
Once you are on a payment plan it is imperative that you stick to it. If things change for you, contact your creditors immediately and let them know. By keeping communications open it will reassure them that you are taking control and not just ignoring the problem.
Online Debt Consolidation - Known for Easy Accessibility of Multiple Loans
Present scenario demands comfortability and easy accessibility in everything which you do i.e. whether it is shopping, availing finance or managing debts. Today managing debt is not uncommon as one out of four is involved in multiple debts. But when we talk about consolidation of debt in terms of comfortability and accessibility people prefer to opt for the online debt consolidation.
With online debt consolidation borrower simplifies the task of escaping from the multiple debts as he is just a click away to relief himself from the burden of the debts. By the term debt consolidation we means that borrower can merge his multiple debts into the one manageable debt. Therefore with online debt consolidation borrower enjoys various features like:
* Lower interest rate
* One easy installment
* Feasible repayment option
* Fast cash approval
Borrowers consolidate their debts either from new lender or one of the existing lenders; whoever provides easy terms and conditions.
Online debt consolidation can be classified into two types namely secured and unsecured. In secured debt consolidation, the person is needed to place collateral. Collateral can be house, car or valuable document. Borrower prefers secured debt consolidation when he needs larger amount, at lower interest rate and easy repayment option.
On the other hand, in unsecured online debt consolidation the person is not required to place collateral. Therefore, borrower is free from the placement of collateral and enjoys the fast cash approval compared to the secured loans.
In debt consolidation loan borrower must try to make to make timely repayments of loan as it helps in improving credit score and to skip from the worst situations like bankruptcy.
With online debt consolidation borrower replaces his multiple debts with a single debt. Though, this means that borrower feels free to keep track of multiples lenders as he is only needed to make single monthly payment to the one lender.
Moreover, while dealing with debt consolidation loan through online helps the borrower to involve low overhead cost and no processing fee.
With online debt consolidation borrower simplifies the task of escaping from the multiple debts as he is just a click away to relief himself from the burden of the debts. By the term debt consolidation we means that borrower can merge his multiple debts into the one manageable debt. Therefore with online debt consolidation borrower enjoys various features like:
* Lower interest rate
* One easy installment
* Feasible repayment option
* Fast cash approval
Borrowers consolidate their debts either from new lender or one of the existing lenders; whoever provides easy terms and conditions.
Online debt consolidation can be classified into two types namely secured and unsecured. In secured debt consolidation, the person is needed to place collateral. Collateral can be house, car or valuable document. Borrower prefers secured debt consolidation when he needs larger amount, at lower interest rate and easy repayment option.
On the other hand, in unsecured online debt consolidation the person is not required to place collateral. Therefore, borrower is free from the placement of collateral and enjoys the fast cash approval compared to the secured loans.
In debt consolidation loan borrower must try to make to make timely repayments of loan as it helps in improving credit score and to skip from the worst situations like bankruptcy.
With online debt consolidation borrower replaces his multiple debts with a single debt. Though, this means that borrower feels free to keep track of multiples lenders as he is only needed to make single monthly payment to the one lender.
Moreover, while dealing with debt consolidation loan through online helps the borrower to involve low overhead cost and no processing fee.
Friday, August 10, 2007
Bring Order to Your Finances With a Personal Debt Consolidation Loan
There comes a time in your life when you will find that you are caught neck deep in debt. Look at all the cash you can easily borrow and spend - there are credit cards for the asking, personal loans, home loans, you ask for it and the money is bang on the table. And, given the ease of so much available money, anyone can get carried away and go on a spending binge. Even you. And then debt piles up. And troubles begin.
Once money has been spent, the payback clock starts ticking and if you have taken multiple loans, then you will naturally have to pay multiple installments. And there's a high chance of anyone with multiple loans getting into a situation where he cannot pay back his loans. And, if you can't pay back your loans comfortably, your credit ratings will be downgraded and when that happens, no one will be willing to lend money to you at a lower rate of interest.
And that is where personal debt consolidation loans come in. They get rid of your burden by giving you a low interest loan that sets you free from your debt trap and helps you get a grip on your finances.
Personal debt consolidation loans are loans that consolidate all your high interest debts (credit card, personal loans, etc.) and give you a loan - at a lower rate of interest - to pay them off, thereby reducing your monthly cash outflow and leaving you with enough cash for running your house.
Advantages of personal debt consolidation loans
1. These loans put your mind at ease because they replace a higher outflow with a lower, more manageable one.
2. They simplify your debt by reducing the number of bills you have to pay every month to just one.
3. These loans are given for a longer period of time and hence the payouts are small and in tune with what you earn every month.
4. If your personal debt consolidation loan is secured by your home, then the rate of interest is much lower than an unsecured consolidation loan.
5. They help you rebuild your credit history, if you pay their installments in time.
6. The biggest advantage of these loans is that they kind of get you out of a mess: out of a hole you have dug for yourself. And that's worth a lot in both monetary and non-monetary terms.
Sure, a personal debt consolidation loan will help you reduce your debt and make life hassle-free (financially), but you need discipline and commitment when it comes to paying back the loan - you just cannot afford to go back to your old ways of being a spendthrift.
There are a whole lot of companies who offer personal debt consolidation loans and it is up to you to choose the loan that is right for you. If you already have a financial advisor, then it would help things if you could take his opinion about the loan you are planning to take. So, if you are stuck in debt, go right ahead and take a personal debt consolidation loan and get rid of all the financial irritants that are causing you a pain in the neck.
Manage Your Finances - Get a Low Debt Consolidation Loan Rate
No one wants to see their family hurt by their own mistakes and parents in particular, tend to do everything to avoid causing their children grief. Unfortunately, when debt spirals out of control and the monthly payments become increasingly difficult to make, radical measures are often considered. However, rather than selling up and moving to a cheaper neighborhood, pulling your children out of school or college or doing anything else to disturb your family's equilibrium, you can consolidate your debts into one loan at a low debt consolidation loan rate. This one action could free up enough money every month to make a significant difference.
You can save a lot of money on interest charges simply by combining your current debts into a loan that has a low debt consolidation loan rate. Not only will your monthly payments decrease (possibly very substantially), you will save thousands of dollars over the loan term, have the convenience of only one payment, and have the guarantee of being debt free at the end of the term of the loan (if you use a fixed term loan to consolidate).
There are different ways you can solve your financial problems by benefiting from low debt consolidation loan rates. Home equity loans can give you highly competitive interest rates if you have adequate equity in your home. The only risk is that your home is security for the loan and if you default the lender can foreclose. You need to be honest with yourself about your payment history and likelihood of paying late. If you are consolidating debt to avoid family upheaval, you certainly don’t want to lose your house because of a missed payment.
An unsecured personal loan is the most popular consolidation option, offering a lower debt consolidation loan rate than the average credit card and line of credit. Most family debt problems are caused by high credit card balances and lines of credit, both at high commercial rates. Multiple monthly payments on different loans can add up to a lot of money and place a lot of stress on every member of your family, but particularly you and your partner.
However, as soon as you have combined all your credit cards and debts into one loan at a lower debt consolidation rate, you will be relieved of an enormous amount of stress. You will be finally in a position to move out of the red and into the black. The monthly and long term savings from debt consolidation will help you take back control of your finances. If you are wise and cancel all your credit cards and any lines of credit once you have paid out their balances, you will be out of debt at the end of the loan term and the whole process will have been painless.
Compare Debt Consolidation Quotes
If you are juggling a variety of small loan repayments, loan repayments at different interest rates or you just need the convenience of one monthly loan repayment bill, a debt consolidation loan could be the right choice for you.
All Loan Repayments in One Monthly Bill
A debt consolidation loan allows you to make one loan repayment a month that covers all your eligible loan repayments. Your credit cards or medical bills are examples of unsecured loans that are suitable for coverage under a debt consolidation loan.
Secured and Unsecured Consolidation Loans
The interest rate can be lower for a secured debt consolidation loan than for an unsecured consolidation loan. You can also borrow more money with a secured loan because you put your house up as collateral.
An unsecured consolidation loan is seen as more of a risk for the loan company, which means you have a higher interest rate and shorter repayment schedule for a lower amount of money than the secured consolidation loan.
Low Credit Scores Eligible for Consolidation Loan
Even if you have a low credit score, you will still be able to secure a consolidation loan. Your current situation and loan terms will determine whether a secured or unsecured plan is right for you. You may have to sign over your house as collateral in the case of a low credit rating.
Learn about Consolidation Loans Online
Your best way to understand about debt consolidation loans is to search the internet for information about loan consolidation lenders. Ask for quotes from lenders and note each company's interest rates, their terms and the types of loan payments that are eligible for coverage.
Calculate the Total Repayment Amount
Add up the total repayment amount for your eligible loan bills, as this amount would be before you secured a debt consolidation loan. Compare your current repayment amount with the total repayment amount for each quote that you receive. To get the best consolidation loan, you must also understand and compare the different terms of the loan from each company.
All Loan Repayments in One Monthly Bill
A debt consolidation loan allows you to make one loan repayment a month that covers all your eligible loan repayments. Your credit cards or medical bills are examples of unsecured loans that are suitable for coverage under a debt consolidation loan.
Secured and Unsecured Consolidation Loans
The interest rate can be lower for a secured debt consolidation loan than for an unsecured consolidation loan. You can also borrow more money with a secured loan because you put your house up as collateral.
An unsecured consolidation loan is seen as more of a risk for the loan company, which means you have a higher interest rate and shorter repayment schedule for a lower amount of money than the secured consolidation loan.
Low Credit Scores Eligible for Consolidation Loan
Even if you have a low credit score, you will still be able to secure a consolidation loan. Your current situation and loan terms will determine whether a secured or unsecured plan is right for you. You may have to sign over your house as collateral in the case of a low credit rating.
Learn about Consolidation Loans Online
Your best way to understand about debt consolidation loans is to search the internet for information about loan consolidation lenders. Ask for quotes from lenders and note each company's interest rates, their terms and the types of loan payments that are eligible for coverage.
Calculate the Total Repayment Amount
Add up the total repayment amount for your eligible loan bills, as this amount would be before you secured a debt consolidation loan. Compare your current repayment amount with the total repayment amount for each quote that you receive. To get the best consolidation loan, you must also understand and compare the different terms of the loan from each company.
Thursday, August 9, 2007
Bring Order to Your Finances With a Personal Debt Consolidation Loan
There comes a time in your life when you will find that you are caught neck deep in debt. Look at all the cash you can easily borrow and spend - there are credit cards for the asking, personal loans, home loans, you ask for it and the money is bang on the table. And, given the ease of so much available money, anyone can get carried away and go on a spending binge. Even you. And then debt piles up. And troubles begin.
Once money has been spent, the payback clock starts ticking and if you have taken multiple loans, then you will naturally have to pay multiple installments. And there's a high chance of anyone with multiple loans getting into a situation where he cannot pay back his loans. And, if you can't pay back your loans comfortably, your credit ratings will be downgraded and when that happens, no one will be willing to lend money to you at a lower rate of interest.
And that is where personal debt consolidation loans come in. They get rid of your burden by giving you a low interest loan that sets you free from your debt trap and helps you get a grip on your finances.
Personal debt consolidation loans are loans that consolidate all your high interest debts (credit card, personal loans, etc.) and give you a loan - at a lower rate of interest - to pay them off, thereby reducing your monthly cash outflow and leaving you with enough cash for running your house.
Advantages of personal debt consolidation loans
1. These loans put your mind at ease because they replace a higher outflow with a lower, more manageable one.
2. They simplify your debt by reducing the number of bills you have to pay every month to just one.
3. These loans are given for a longer period of time and hence the payouts are small and in tune with what you earn every month.
4. If your personal debt consolidation loan is secured by your home, then the rate of interest is much lower than an unsecured consolidation loan.
5. They help you rebuild your credit history, if you pay their installments in time.
6. The biggest advantage of these loans is that they kind of get you out of a mess: out of a hole you have dug for yourself. And that's worth a lot in both monetary and non-monetary terms.
Sure, a personal debt consolidation loan will help you reduce your debt and make life hassle-free (financially), but you need discipline and commitment when it comes to paying back the loan - you just cannot afford to go back to your old ways of being a spendthrift.
There are a whole lot of companies who offer personal debt consolidation loans and it is up to you to choose the loan that is right for you. If you already have a financial advisor, then it would help things if you could take his opinion about the loan you are planning to take. So, if you are stuck in debt, go right ahead and take a personal debt consolidation loan and get rid of all the financial irritants that are causing you a pain in the neck.
Once money has been spent, the payback clock starts ticking and if you have taken multiple loans, then you will naturally have to pay multiple installments. And there's a high chance of anyone with multiple loans getting into a situation where he cannot pay back his loans. And, if you can't pay back your loans comfortably, your credit ratings will be downgraded and when that happens, no one will be willing to lend money to you at a lower rate of interest.
And that is where personal debt consolidation loans come in. They get rid of your burden by giving you a low interest loan that sets you free from your debt trap and helps you get a grip on your finances.
Personal debt consolidation loans are loans that consolidate all your high interest debts (credit card, personal loans, etc.) and give you a loan - at a lower rate of interest - to pay them off, thereby reducing your monthly cash outflow and leaving you with enough cash for running your house.
Advantages of personal debt consolidation loans
1. These loans put your mind at ease because they replace a higher outflow with a lower, more manageable one.
2. They simplify your debt by reducing the number of bills you have to pay every month to just one.
3. These loans are given for a longer period of time and hence the payouts are small and in tune with what you earn every month.
4. If your personal debt consolidation loan is secured by your home, then the rate of interest is much lower than an unsecured consolidation loan.
5. They help you rebuild your credit history, if you pay their installments in time.
6. The biggest advantage of these loans is that they kind of get you out of a mess: out of a hole you have dug for yourself. And that's worth a lot in both monetary and non-monetary terms.
Sure, a personal debt consolidation loan will help you reduce your debt and make life hassle-free (financially), but you need discipline and commitment when it comes to paying back the loan - you just cannot afford to go back to your old ways of being a spendthrift.
There are a whole lot of companies who offer personal debt consolidation loans and it is up to you to choose the loan that is right for you. If you already have a financial advisor, then it would help things if you could take his opinion about the loan you are planning to take. So, if you are stuck in debt, go right ahead and take a personal debt consolidation loan and get rid of all the financial irritants that are causing you a pain in the neck.
Manage Your Finances - Get a Low Debt Consolidation Loan Rate
No one wants to see their family hurt by their own mistakes and parents in particular, tend to do everything to avoid causing their children grief. Unfortunately, when debt spirals out of control and the monthly payments become increasingly difficult to make, radical measures are often considered. However, rather than selling up and moving to a cheaper neighborhood, pulling your children out of school or college or doing anything else to disturb your family's equilibrium, you can consolidate your debts into one loan at a low debt consolidation loan rate. This one action could free up enough money every month to make a significant difference.
You can save a lot of money on interest charges simply by combining your current debts into a loan that has a low debt consolidation loan rate. Not only will your monthly payments decrease (possibly very substantially), you will save thousands of dollars over the loan term, have the convenience of only one payment, and have the guarantee of being debt free at the end of the term of the loan (if you use a fixed term loan to consolidate).
There are different ways you can solve your financial problems by benefiting from low debt consolidation loan rates. Home equity loans can give you highly competitive interest rates if you have adequate equity in your home. The only risk is that your home is security for the loan and if you default the lender can foreclose. You need to be honest with yourself about your payment history and likelihood of paying late. If you are consolidating debt to avoid family upheaval, you certainly don’t want to lose your house because of a missed payment.
An unsecured personal loan is the most popular consolidation option, offering a lower debt consolidation loan rate than the average credit card and line of credit. Most family debt problems are caused by high credit card balances and lines of credit, both at high commercial rates. Multiple monthly payments on different loans can add up to a lot of money and place a lot of stress on every member of your family, but particularly you and your partner.
However, as soon as you have combined all your credit cards and debts into one loan at a lower debt consolidation rate, you will be relieved of an enormous amount of stress. You will be finally in a position to move out of the red and into the black. The monthly and long term savings from debt consolidation will help you take back control of your finances. If you are wise and cancel all your credit cards and any lines of credit once you have paid out their balances, you will be out of debt at the end of the loan term and the whole process will have been painless.
You can save a lot of money on interest charges simply by combining your current debts into a loan that has a low debt consolidation loan rate. Not only will your monthly payments decrease (possibly very substantially), you will save thousands of dollars over the loan term, have the convenience of only one payment, and have the guarantee of being debt free at the end of the term of the loan (if you use a fixed term loan to consolidate).
There are different ways you can solve your financial problems by benefiting from low debt consolidation loan rates. Home equity loans can give you highly competitive interest rates if you have adequate equity in your home. The only risk is that your home is security for the loan and if you default the lender can foreclose. You need to be honest with yourself about your payment history and likelihood of paying late. If you are consolidating debt to avoid family upheaval, you certainly don’t want to lose your house because of a missed payment.
An unsecured personal loan is the most popular consolidation option, offering a lower debt consolidation loan rate than the average credit card and line of credit. Most family debt problems are caused by high credit card balances and lines of credit, both at high commercial rates. Multiple monthly payments on different loans can add up to a lot of money and place a lot of stress on every member of your family, but particularly you and your partner.
However, as soon as you have combined all your credit cards and debts into one loan at a lower debt consolidation rate, you will be relieved of an enormous amount of stress. You will be finally in a position to move out of the red and into the black. The monthly and long term savings from debt consolidation will help you take back control of your finances. If you are wise and cancel all your credit cards and any lines of credit once you have paid out their balances, you will be out of debt at the end of the loan term and the whole process will have been painless.
Compare Debt Consolidation Quotes
If you are juggling a variety of small loan repayments, loan repayments at different interest rates or you just need the convenience of one monthly loan repayment bill, a debt consolidation loan could be the right choice for you.
All Loan Repayments in One Monthly Bill
A debt consolidation loan allows you to make one loan repayment a month that covers all your eligible loan repayments. Your credit cards or medical bills are examples of unsecured loans that are suitable for coverage under a debt consolidation loan.
Secured and Unsecured Consolidation Loans
The interest rate can be lower for a secured debt consolidation loan than for an unsecured consolidation loan. You can also borrow more money with a secured loan because you put your house up as collateral.
An unsecured consolidation loan is seen as more of a risk for the loan company, which means you have a higher interest rate and shorter repayment schedule for a lower amount of money than the secured consolidation loan.
Low Credit Scores Eligible for Consolidation Loan
Even if you have a low credit score, you will still be able to secure a consolidation loan. Your current situation and loan terms will determine whether a secured or unsecured plan is right for you. You may have to sign over your house as collateral in the case of a low credit rating.
Learn about Consolidation Loans Online
Your best way to understand about debt consolidation loans is to search the internet for information about loan consolidation lenders. Ask for quotes from lenders and note each company's interest rates, their terms and the types of loan payments that are eligible for coverage.
Calculate the Total Repayment Amount
Add up the total repayment amount for your eligible loan bills, as this amount would be before you secured a debt consolidation loan. Compare your current repayment amount with the total repayment amount for each quote that you receive. To get the best consolidation loan, you must also understand and compare the different terms of the loan from each company.
All Loan Repayments in One Monthly Bill
A debt consolidation loan allows you to make one loan repayment a month that covers all your eligible loan repayments. Your credit cards or medical bills are examples of unsecured loans that are suitable for coverage under a debt consolidation loan.
Secured and Unsecured Consolidation Loans
The interest rate can be lower for a secured debt consolidation loan than for an unsecured consolidation loan. You can also borrow more money with a secured loan because you put your house up as collateral.
An unsecured consolidation loan is seen as more of a risk for the loan company, which means you have a higher interest rate and shorter repayment schedule for a lower amount of money than the secured consolidation loan.
Low Credit Scores Eligible for Consolidation Loan
Even if you have a low credit score, you will still be able to secure a consolidation loan. Your current situation and loan terms will determine whether a secured or unsecured plan is right for you. You may have to sign over your house as collateral in the case of a low credit rating.
Learn about Consolidation Loans Online
Your best way to understand about debt consolidation loans is to search the internet for information about loan consolidation lenders. Ask for quotes from lenders and note each company's interest rates, their terms and the types of loan payments that are eligible for coverage.
Calculate the Total Repayment Amount
Add up the total repayment amount for your eligible loan bills, as this amount would be before you secured a debt consolidation loan. Compare your current repayment amount with the total repayment amount for each quote that you receive. To get the best consolidation loan, you must also understand and compare the different terms of the loan from each company.
Global Merger Activity Sets Record Pace
The volume of mergers and acquisitions announced worldwide so far this year reached $1.65 trillion as of June 7, up 38% from the same period a year earlier and the highest year-to-date total on record, just slightly ahead of the previous record for the same period in 2000, according to Dealogic.
A record of 25 deals with a value of $10 billion or more have been announced so tar in 2006, up from 15 such deals in the same period of 2005.The top-five targeted industries tor acquisitions this year are telecommunications, finance, utility and energy, real estate and healthcare, Dealogic says.
Although Europe and the United States are running neck and neck in overall M&A activity, the largest single deal so far this year was in the US: AT&T's $67 billion offer for BellSouth.
The biggest deals in Europe announced in May involved competing bids for Luxembourg-based steel company Arcelor and Amsterdam-based Euronext, which runs the Paris, Amsterdam, Brussels and Lisbon bourses.
Manfred Weber, chief executive of the Association ot German Banks, said in Berlin on June 12 that Euronext shareholders could still decide m favor of a merger with the Deutsche Bourse rather than with the New York Stock Exchange. "I believe chat Euronext's shareholders will give it another thought," Weber said. The management of Euronext has agreed to a nearly $10 billion cash-and-stock takeover by the NYSE to create a business worth about $20 billion.
"We will pass up on a great chance it we don't use consolidation of the European stock exchange landscape to create a counterweight to Wall Street," Weber said. If the NYSE succeeds in acquiring Euronext, it plans to create a single platform where traders could deal in stocks, options, futures, commodities and corporate bonds across the US and Europe for up to 12 hours a day.
Meanwhile, steel company Arcelor on June 12 rejected a revised takeover offer by Mittal Steel, based in the Netherlands, but agreed to hold a special vote that could block its plan to merge with Russia's Severstal. Arcelor rejected Mittal Steel's $27 billion bid as inadequate but said it would consider an improved offer. As Global Finance went to press, shareholders were to vote on June 28 whether to approve a hostile takeover from Mittal or a plan to merge Arcelor with Severstal, which is playing the role of a white knight favored by Arcelor's board.
On June 14 Paris-based AXA agreed to buy insurer Wimerthur from Credit Suisse for about $10 billion in cash. In addition, AXA will refinance S 1.25 billion of Winterthur's outstanding debt. Winterthur operates in 17 countries and has 13 million clients.
In the US, Charlotte, North Carolina-based Wachovia's $25.5 billion acquisition of Californiabased Golden West Financial was the biggest M&A deal announced in May. It was followed by a planned leveraged buyout of pipeline operator Kinder Morgan by an investor group advised by Goldman Sachs.
Richard Kinder, chairman and CEO of Kinder Morgan, joined with senior managers and outside investors to buy the company and take it private. Including $8 billion of liabilities, the offer valued the company at about $24 billion, according to Thomson Financial. The acquisition would be structured as a merger between Kinder Morgan and the group ot investors that includes Kinder and co-founder Bill Morgan, board members Payez Sarofim and Mike Morgan, Goldman Sachs Capital Partners, AIB Global Asset Management Holdings, the Carlyle Group and Riverstone Holdings.
A record of 25 deals with a value of $10 billion or more have been announced so tar in 2006, up from 15 such deals in the same period of 2005.The top-five targeted industries tor acquisitions this year are telecommunications, finance, utility and energy, real estate and healthcare, Dealogic says.
Although Europe and the United States are running neck and neck in overall M&A activity, the largest single deal so far this year was in the US: AT&T's $67 billion offer for BellSouth.
The biggest deals in Europe announced in May involved competing bids for Luxembourg-based steel company Arcelor and Amsterdam-based Euronext, which runs the Paris, Amsterdam, Brussels and Lisbon bourses.
Manfred Weber, chief executive of the Association ot German Banks, said in Berlin on June 12 that Euronext shareholders could still decide m favor of a merger with the Deutsche Bourse rather than with the New York Stock Exchange. "I believe chat Euronext's shareholders will give it another thought," Weber said. The management of Euronext has agreed to a nearly $10 billion cash-and-stock takeover by the NYSE to create a business worth about $20 billion.
"We will pass up on a great chance it we don't use consolidation of the European stock exchange landscape to create a counterweight to Wall Street," Weber said. If the NYSE succeeds in acquiring Euronext, it plans to create a single platform where traders could deal in stocks, options, futures, commodities and corporate bonds across the US and Europe for up to 12 hours a day.
Meanwhile, steel company Arcelor on June 12 rejected a revised takeover offer by Mittal Steel, based in the Netherlands, but agreed to hold a special vote that could block its plan to merge with Russia's Severstal. Arcelor rejected Mittal Steel's $27 billion bid as inadequate but said it would consider an improved offer. As Global Finance went to press, shareholders were to vote on June 28 whether to approve a hostile takeover from Mittal or a plan to merge Arcelor with Severstal, which is playing the role of a white knight favored by Arcelor's board.
On June 14 Paris-based AXA agreed to buy insurer Wimerthur from Credit Suisse for about $10 billion in cash. In addition, AXA will refinance S 1.25 billion of Winterthur's outstanding debt. Winterthur operates in 17 countries and has 13 million clients.
In the US, Charlotte, North Carolina-based Wachovia's $25.5 billion acquisition of Californiabased Golden West Financial was the biggest M&A deal announced in May. It was followed by a planned leveraged buyout of pipeline operator Kinder Morgan by an investor group advised by Goldman Sachs.
Richard Kinder, chairman and CEO of Kinder Morgan, joined with senior managers and outside investors to buy the company and take it private. Including $8 billion of liabilities, the offer valued the company at about $24 billion, according to Thomson Financial. The acquisition would be structured as a merger between Kinder Morgan and the group ot investors that includes Kinder and co-founder Bill Morgan, board members Payez Sarofim and Mike Morgan, Goldman Sachs Capital Partners, AIB Global Asset Management Holdings, the Carlyle Group and Riverstone Holdings.
Toast of the Towns
Canada Bread offers rising fortunes in baked goods
We first featured Canada Bread as a Stock to Study in July/Aug. 1988 issue, and did so again in Nov./Dec. 1993, In both, the company was known as Corporate Foods Limited. Between the first two features the stock's price rose from $7 to $15, providing owners with a 16% compound rate of price appreciation. It has since traded as high as $61 (May 2006) for annual gains averaging 12%.
CANADA Bread Co. Ltd., a leading producer and distributor of breads and other baked goods, serves grocery stores, restaurant, and institutional markets. The company is the largest bakery products manufacturer in Canada, and has expanded into the United States and the U.K. through acquisitions. Currently, the company employs 7,300 people; including more than 6,000 at 30 facilities across Canada.
The company markets its products under different consumer brand names. Dempster's, the national brand, is strongest in Ontario. Strong regional brands include McGavin's in the West, POM in Quebec, and Ben's in Atlantic Canada.
Canada Bread is headquartered in Toronto. Its stock is thinly traded because Maple Leaf Foods (see growth chart on following page) owns 87.5% of the company's shares.
Historical Growth
Revenues
Chart 1 indicates that during the entire study period, Canada Bread's revenues grew at an average compound rate of about 13%. Since 2000, average growth accelerated to about 21%, largely as the result of acquisitions in 2001-02. Those expansions added the Multi-Marques brands and facilities in Eastern Canada (2001), and the U.S./U.K. bakery assets of parent Maple Leaf Foods (2002). In all, the acquisitions added 20 bakeries, 3,000 employees, and 10,000 customers.
Recently, revenue growth has slowed significantly, to about 2% in fiscal 2005 (ending December), for total revenues of $1.3 billion. First-quarter 2006 revenues declined by about 5%.
EPS
Growth in EPS (earnings per share before discontinued, extraordinary, and special items) of 12% has generally tracked revenue growth throughout the study period. However, EPS growth since 1999, at 30%, has significantly outpaced revenues. Following the 2001-02 acquisitions, growth averaged about 23%, with EPS up 19% in 2005. EPS for the first quarter of 2006 were up by 28%.
Successful consolidation of operations following acquisitions can produce superior earnings growth even while revenue growth slows.
Reasons for Historical Growth
Important Products
Canada Bread's revenues are derived principally from freshly baked and frozen products.
Fresh Bakery Products (71% of 2005 revenues vs. 70% in 2003)
The company is the Canadian leader in the fresh-bakery market. It manufactures and distributes a wide range of bakery products, including sliced breads, bagels, sweet goods (cakes and pies), and flatbreads, such as tortillas and pita sandwich pouches.
Fresh products have a limited shelf life (two to three weeks total for most breads), and extensive shipping can impair quality and appearance. Accordingly, production facilities must be located close to local consumer markets. For Canada Bread, that requires a network of 22 bakeries across the country.
In addition, the company maintains a large fleet of trucks for direct-to-storedelivery to most grocery accounts. Together, facilities and transportation represent high fixed costs. Another important cost arises from the return of unsold goods that have gone stale.
Frozen Bakery Products (29% of 2005 revenues vs. 30% in 2003)
This segment involves the production and distribution of various partially baked frozen breads and rolls. These products are "par-baked" - which involves baking breads to within 90% of completion, and then flash-freezing and shipping to both grocery stores and restaurants.
The par-baked market is one of the fastest-growing segments of the bakery industry, as it offers the opportunity for in-store bakeries, fast-food outlets, and cafeterias to produce small quantities of hot breads in a matter of minutes.
As well, the use of frozen products permits consistent product quality, lower product wastage, and reduced in-store labour costs, as higher-paid bakers are no longer required to prepare breads "from scratch.'
Important Markets
An estimated 70% of revenues originate in Canada from the sale of both fresh and frozen products. Only frozen products are sold in the United States. Canada Bread is the largest manufacturer of bagels in the U.K., where it also sells specialty breads.
Important Customers
Canada Bread is known to be a key Fresh Bakery supplier to major grocery chains, such as Sobey's, Safeway, Metro/A&P and large food-service operators across Canada. In the United States, Canada Bread primarily sells its frozen, par-baked products to sandwich shop chains and grocery stores.
Important Competitors
In Canada, Canada Bread faces another large, mainstream competitor in Weston Bakeries, owned by the same parent company as Loblaw's. Both companies compete vigorously in the fresh and parbaked categories nationally.
We first featured Canada Bread as a Stock to Study in July/Aug. 1988 issue, and did so again in Nov./Dec. 1993, In both, the company was known as Corporate Foods Limited. Between the first two features the stock's price rose from $7 to $15, providing owners with a 16% compound rate of price appreciation. It has since traded as high as $61 (May 2006) for annual gains averaging 12%.
CANADA Bread Co. Ltd., a leading producer and distributor of breads and other baked goods, serves grocery stores, restaurant, and institutional markets. The company is the largest bakery products manufacturer in Canada, and has expanded into the United States and the U.K. through acquisitions. Currently, the company employs 7,300 people; including more than 6,000 at 30 facilities across Canada.
The company markets its products under different consumer brand names. Dempster's, the national brand, is strongest in Ontario. Strong regional brands include McGavin's in the West, POM in Quebec, and Ben's in Atlantic Canada.
Canada Bread is headquartered in Toronto. Its stock is thinly traded because Maple Leaf Foods (see growth chart on following page) owns 87.5% of the company's shares.
Historical Growth
Revenues
Chart 1 indicates that during the entire study period, Canada Bread's revenues grew at an average compound rate of about 13%. Since 2000, average growth accelerated to about 21%, largely as the result of acquisitions in 2001-02. Those expansions added the Multi-Marques brands and facilities in Eastern Canada (2001), and the U.S./U.K. bakery assets of parent Maple Leaf Foods (2002). In all, the acquisitions added 20 bakeries, 3,000 employees, and 10,000 customers.
Recently, revenue growth has slowed significantly, to about 2% in fiscal 2005 (ending December), for total revenues of $1.3 billion. First-quarter 2006 revenues declined by about 5%.
EPS
Growth in EPS (earnings per share before discontinued, extraordinary, and special items) of 12% has generally tracked revenue growth throughout the study period. However, EPS growth since 1999, at 30%, has significantly outpaced revenues. Following the 2001-02 acquisitions, growth averaged about 23%, with EPS up 19% in 2005. EPS for the first quarter of 2006 were up by 28%.
Successful consolidation of operations following acquisitions can produce superior earnings growth even while revenue growth slows.
Reasons for Historical Growth
Important Products
Canada Bread's revenues are derived principally from freshly baked and frozen products.
Fresh Bakery Products (71% of 2005 revenues vs. 70% in 2003)
The company is the Canadian leader in the fresh-bakery market. It manufactures and distributes a wide range of bakery products, including sliced breads, bagels, sweet goods (cakes and pies), and flatbreads, such as tortillas and pita sandwich pouches.
Fresh products have a limited shelf life (two to three weeks total for most breads), and extensive shipping can impair quality and appearance. Accordingly, production facilities must be located close to local consumer markets. For Canada Bread, that requires a network of 22 bakeries across the country.
In addition, the company maintains a large fleet of trucks for direct-to-storedelivery to most grocery accounts. Together, facilities and transportation represent high fixed costs. Another important cost arises from the return of unsold goods that have gone stale.
Frozen Bakery Products (29% of 2005 revenues vs. 30% in 2003)
This segment involves the production and distribution of various partially baked frozen breads and rolls. These products are "par-baked" - which involves baking breads to within 90% of completion, and then flash-freezing and shipping to both grocery stores and restaurants.
The par-baked market is one of the fastest-growing segments of the bakery industry, as it offers the opportunity for in-store bakeries, fast-food outlets, and cafeterias to produce small quantities of hot breads in a matter of minutes.
As well, the use of frozen products permits consistent product quality, lower product wastage, and reduced in-store labour costs, as higher-paid bakers are no longer required to prepare breads "from scratch.'
Important Markets
An estimated 70% of revenues originate in Canada from the sale of both fresh and frozen products. Only frozen products are sold in the United States. Canada Bread is the largest manufacturer of bagels in the U.K., where it also sells specialty breads.
Important Customers
Canada Bread is known to be a key Fresh Bakery supplier to major grocery chains, such as Sobey's, Safeway, Metro/A&P and large food-service operators across Canada. In the United States, Canada Bread primarily sells its frozen, par-baked products to sandwich shop chains and grocery stores.
Important Competitors
In Canada, Canada Bread faces another large, mainstream competitor in Weston Bakeries, owned by the same parent company as Loblaw's. Both companies compete vigorously in the fresh and parbaked categories nationally.
Time to take risk topside: fires, disappearances, ghastly viruses—you'll find them all aboard cruise ships. That makes reputation management quite a c
Managing reputational risk in the cruise industry has never been smooth sailing. Consider that the world's most well-known luxury cruise of all time is the one that struck an iceberg and claimed the lives of 1,523 passengers and crew.
Shipboard risk management, of course, is far more sophisticated an enterprise than it was in the days of White Star Line's RMS Titanic. Risk managers in the cruise industry, however, still navigate through decidedly choppy waters. Just within the past decade or so, cruise lines have taken more than their fair share of high-profile hits.
* In 2002, an apparent rise in gastrointestinal illnesses aboard cruise ships caught the attention of the media--most notably Holland America's Amsterdam and Carnival's Fascination, which collectively had 700 sick passengers over the course of several cruises. Reports of Norwalk virus, or norovirus, outbreaks are currently still a favorite target of media and cruise critics.
* Exacerbating the illness stigma, news broke two years ago citing eight cases of Legionnaire's disease among cruise passengers between November 2003 and May 2004--two of them fatal.
* The industry took a further lashing in July 2005, when a young honeymooner disappeared from a Royal Caribbean ship traveling off the Turkish coast. Journalists dug up the details of every cruise passenger disappearance they could find, and soon the incident metamorphasized into an epidemic. Senate hearings on cruise passenger safety began in early 2006.
* Fires plague cruise lines regularly. As recently as March of this year, a stray cigarette was the alleged cause of a blaze aboard Princess Cruises' Star Princess, injuring 11 passengers and contributing to the death of another, who suffered a cardiac arrest.
Suffice to say that life is never dull for risk managers in the cruise industry.
Some of the group's most serious woes date back to 1998, when Royal Caribbean Cruise International pied guilty to federal charges that included oil dumping, falsification of records, obstruction of justice and witness tampering, related to five years' worth of incidents. The cruise line agreed to pay $9 million in fines--one of the largest settlements ever involving a cruise line accused of intentionally polluting the environment.
Fallout from the ease hurt more than Royal Caribbean. Data from CoreBrand Communications shows that other top cruise lines such as Carnival and Royal Olympic took a reputational hit from 1998 to 1999, as did the cruise industry as a whole, based on detailed surveys and other measurements that the branding firm uses to assess the familiarity and favorability ratings of companies' brand names. CoreBrand's data reveals that the favorability and overall reputation ratings of cruise lines dropped off around 1998, even as the leisure industry as a whole was enjoying increased favorability.
"People hear of an event and they don't think 'Disney,' they don't think 'Carnival.' They hear 'cruises,'" says Brad Puckey, brand intelligence director at CoreBrand. "That's a real danger to this industry."
THE PRICE OF SILENCE
CoreBrand's favorability ratings, however, show a steady comeback since 1999. In spite of the continued barrage of negative events, the industry has consistently increased its share of the leisure market--no small accomplishment.
So how do they do it? "It's always preparing, always operating above regulatory standards," says Bill Fay, who's been with Royal Caribbean since 2000 as an insurance manager in risk management. "We recognize the value of our guests, and when situations occur, we do the right thing."
Critics believe there's a little more to it, noting that reps pay weekly visits to local editorial boards in popular port cities to offer the industry's side of any issues that might arise. Skeptics may call that undue influence, but it's a tactic that some public relations experts recommend as part of an overall strategy for managing reputational risk.
"The media are not your enemy," said Michael Hatcliffe during a session on the subject at the recent Risk and Insurance Management Society Inc. conference. Chicago-based Hatcliffe, executive vice president, U.S. corporate practice, at Ogilvy Public Relations, tells clients to make nice with the media on sunny days, so that they'll have friends when the stormy days roll in.
Individual cruise lines, though, don't always toe the p.r. line. Many critics, for example, felt that cruise lines were slow to react when reports of widespread norovirus outbreaks began to surface. Not so, says Fay. Just cautious and avoiding a knee-jerk reaction.
"The media tends to sensationalize a lot of things," says Fay. "The norovirus and other issues that have occurred over the years were wrongly attributed to the cruise industry. I think whenever anything happens we basically just have to ... do the homework, find out what the real issue is and go to the media with the real story."
Shipboard risk management, of course, is far more sophisticated an enterprise than it was in the days of White Star Line's RMS Titanic. Risk managers in the cruise industry, however, still navigate through decidedly choppy waters. Just within the past decade or so, cruise lines have taken more than their fair share of high-profile hits.
* In 2002, an apparent rise in gastrointestinal illnesses aboard cruise ships caught the attention of the media--most notably Holland America's Amsterdam and Carnival's Fascination, which collectively had 700 sick passengers over the course of several cruises. Reports of Norwalk virus, or norovirus, outbreaks are currently still a favorite target of media and cruise critics.
* Exacerbating the illness stigma, news broke two years ago citing eight cases of Legionnaire's disease among cruise passengers between November 2003 and May 2004--two of them fatal.
* The industry took a further lashing in July 2005, when a young honeymooner disappeared from a Royal Caribbean ship traveling off the Turkish coast. Journalists dug up the details of every cruise passenger disappearance they could find, and soon the incident metamorphasized into an epidemic. Senate hearings on cruise passenger safety began in early 2006.
* Fires plague cruise lines regularly. As recently as March of this year, a stray cigarette was the alleged cause of a blaze aboard Princess Cruises' Star Princess, injuring 11 passengers and contributing to the death of another, who suffered a cardiac arrest.
Suffice to say that life is never dull for risk managers in the cruise industry.
Some of the group's most serious woes date back to 1998, when Royal Caribbean Cruise International pied guilty to federal charges that included oil dumping, falsification of records, obstruction of justice and witness tampering, related to five years' worth of incidents. The cruise line agreed to pay $9 million in fines--one of the largest settlements ever involving a cruise line accused of intentionally polluting the environment.
Fallout from the ease hurt more than Royal Caribbean. Data from CoreBrand Communications shows that other top cruise lines such as Carnival and Royal Olympic took a reputational hit from 1998 to 1999, as did the cruise industry as a whole, based on detailed surveys and other measurements that the branding firm uses to assess the familiarity and favorability ratings of companies' brand names. CoreBrand's data reveals that the favorability and overall reputation ratings of cruise lines dropped off around 1998, even as the leisure industry as a whole was enjoying increased favorability.
"People hear of an event and they don't think 'Disney,' they don't think 'Carnival.' They hear 'cruises,'" says Brad Puckey, brand intelligence director at CoreBrand. "That's a real danger to this industry."
THE PRICE OF SILENCE
CoreBrand's favorability ratings, however, show a steady comeback since 1999. In spite of the continued barrage of negative events, the industry has consistently increased its share of the leisure market--no small accomplishment.
So how do they do it? "It's always preparing, always operating above regulatory standards," says Bill Fay, who's been with Royal Caribbean since 2000 as an insurance manager in risk management. "We recognize the value of our guests, and when situations occur, we do the right thing."
Critics believe there's a little more to it, noting that reps pay weekly visits to local editorial boards in popular port cities to offer the industry's side of any issues that might arise. Skeptics may call that undue influence, but it's a tactic that some public relations experts recommend as part of an overall strategy for managing reputational risk.
"The media are not your enemy," said Michael Hatcliffe during a session on the subject at the recent Risk and Insurance Management Society Inc. conference. Chicago-based Hatcliffe, executive vice president, U.S. corporate practice, at Ogilvy Public Relations, tells clients to make nice with the media on sunny days, so that they'll have friends when the stormy days roll in.
Individual cruise lines, though, don't always toe the p.r. line. Many critics, for example, felt that cruise lines were slow to react when reports of widespread norovirus outbreaks began to surface. Not so, says Fay. Just cautious and avoiding a knee-jerk reaction.
"The media tends to sensationalize a lot of things," says Fay. "The norovirus and other issues that have occurred over the years were wrongly attributed to the cruise industry. I think whenever anything happens we basically just have to ... do the homework, find out what the real issue is and go to the media with the real story."
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