Dept consolidation is a solution to the many people who are in debt and have no other means of getting out of it. All the debts are calculated together and then a loan will be taken to pay them all off in full. This is the best way to get rid of them for once and for all times.
The next step is to shop for a loan. As you now have a bad credit history you will probably be paying a little more interest than you would have. There are various loans that could be used to pay off your debts, but the personal loan will be very suitable. When you apply for the loan the bank or money lender will ask you to take a secured loan, which means that you will have to secure the loan against your home if you are a home owner. If not you will have to give the lender some sort of collateral that he will approve of. Collateral gives the lender security in case you default in your monthly payments of the loan.
If you did not wish to place your home on the line you could refuse to take a secured loan. You might find the lender refusing you the loan, in which case you could shop around for another money lender to help you. You will probably find one that is willing to give you an unsecured loan but you would be paying higher interest and loan rates.
You will now be able to pay off all your debts and just have the monthly payment of the loan to contend with. If debt is your problem try getting debt counseling so that you will not get into the same situation again.
Sunday, January 21, 2007
Goal-Setting To Get Out Of Debt, Part 2
Although it’s good to set big goals, you don’t have to try to achieve them all at once. You can set sub-goals before you get to the big goal. An important part of setting goals is to achieve minor victories along the way. By doing so, you gain a psychological edge. You gain momentum and you can ride that momentum all the way to your big goal. You’ll find that getting to your goal will get easier and easier.
For example, many people want to reach that magical 700 credit score. If you’re starting at 560, you can set a goal to hit 700 within 1 year. In between, you can set mini-goals. If you start your quest to 700 in January, you can try to hit 600 by March. When you hit 600, take a moment to celebrate your achievement. Then continue your quest. 620 by July, 660 by November, and finally 700 by January.
No matter how SMART your goal is, always expect the unexpected. You will not have a clear, unobstructed path to your goal. Inevitably, you will encounter an obstacle. Perhaps you set a goal for 620 by July. Come July, you’re only at 600. If you get discouraged and give up, will you reach 700? Of course not. You must persevere. See where your credit is when you get to 600. Maybe you need to pay off another credit card. Maybe you need to dispute some inquiries. Whatever it is, take corrective action and move forward. At this point, you might have to extend your goal of 700 by a few months. Let’s say that you get to 700 by next June instead of January. Does that mean you failed? Not a chance! You got your 700 score, and that is the most important thing. If you got to 640 and stopped there, then you failed – that is, failed to reach 700. In the end, you are much better off than you were when your score was 560. Every point counts, but you must be accountable to yourself.
Finally, you absolutely must write your goals down. When you write your goals out, the goal becomes tangible and real. It becomes your roadmap for success. Jim Carrey, the movie star, wrote a check to himself for $20 million dollars before he became a star. He post-dated the check several years. He put it in his wallet and carried it with him wherever he went. When things were tough, he would just sit and look at the check to keep his spirits up. Almost to the day that he wrote that check, he signed on to star in the movie The Mask for $20 million dollars. This is an example of the power of the written goal. The trick of writing a big-money check to yourself has been used by many people over the years. It’s very powerful – just make sure you don’t lose the check!
For example, many people want to reach that magical 700 credit score. If you’re starting at 560, you can set a goal to hit 700 within 1 year. In between, you can set mini-goals. If you start your quest to 700 in January, you can try to hit 600 by March. When you hit 600, take a moment to celebrate your achievement. Then continue your quest. 620 by July, 660 by November, and finally 700 by January.
No matter how SMART your goal is, always expect the unexpected. You will not have a clear, unobstructed path to your goal. Inevitably, you will encounter an obstacle. Perhaps you set a goal for 620 by July. Come July, you’re only at 600. If you get discouraged and give up, will you reach 700? Of course not. You must persevere. See where your credit is when you get to 600. Maybe you need to pay off another credit card. Maybe you need to dispute some inquiries. Whatever it is, take corrective action and move forward. At this point, you might have to extend your goal of 700 by a few months. Let’s say that you get to 700 by next June instead of January. Does that mean you failed? Not a chance! You got your 700 score, and that is the most important thing. If you got to 640 and stopped there, then you failed – that is, failed to reach 700. In the end, you are much better off than you were when your score was 560. Every point counts, but you must be accountable to yourself.
Finally, you absolutely must write your goals down. When you write your goals out, the goal becomes tangible and real. It becomes your roadmap for success. Jim Carrey, the movie star, wrote a check to himself for $20 million dollars before he became a star. He post-dated the check several years. He put it in his wallet and carried it with him wherever he went. When things were tough, he would just sit and look at the check to keep his spirits up. Almost to the day that he wrote that check, he signed on to star in the movie The Mask for $20 million dollars. This is an example of the power of the written goal. The trick of writing a big-money check to yourself has been used by many people over the years. It’s very powerful – just make sure you don’t lose the check!
Debt Consolidation - Is it Right for Me?
Many people search for a way to bring life back into their finances and relieve their ever growing debt problems. Two ways to accomplish this are debt consolidation loans and credit counseling services. The internet offers a wealth of resources dedicated to these two options. With a little research you can find many different companies for either one of these topics. This is an overview of what is offered both online and off.
Debt consolidation loans are offered by most all major lenders. This loan allows you to combine credit card and other debt into one monthly payment. Keep in mind that you will have to be approved based on your credit rating. Some lenders also offer loans to people with bad credit. If you are a homeowner, you may be able to use the equity in your home. You may also qualify for an unsecured debt consolidation loan so your assets are not associated with the loan.
Consumer credit counseling services offer programs to help gain control of your debt without needing a debt consolidation loan. These companies try to negotiate lower interest rates with creditors. They manage your monthly payments in return for a fee. This can be a good option to lower your monthly payments, and pay down the balances from your creditors. Every company is different and there are various ways they achieve this.
While credit counseling services can save you money, and definitely be worth the fee they charge, many are not trustworthy. Some companies hold onto your monthly payment for a month or more and collect interest on your money. Keep this in mind when selecting a company for this type of service. Many debt consolidation loans have higher interest rates, so this should also be investigated before closing a loan.
Both debt consolidation and credit counseling can provide a solution to lowering your monthly bills. You can find many resources to help make the right decision on the internet. Our website offers completely free information for consumers about debt consolidation. In conclusion, research is the key when it comes to getting your finances back on the right track.
Debt consolidation loans are offered by most all major lenders. This loan allows you to combine credit card and other debt into one monthly payment. Keep in mind that you will have to be approved based on your credit rating. Some lenders also offer loans to people with bad credit. If you are a homeowner, you may be able to use the equity in your home. You may also qualify for an unsecured debt consolidation loan so your assets are not associated with the loan.
Consumer credit counseling services offer programs to help gain control of your debt without needing a debt consolidation loan. These companies try to negotiate lower interest rates with creditors. They manage your monthly payments in return for a fee. This can be a good option to lower your monthly payments, and pay down the balances from your creditors. Every company is different and there are various ways they achieve this.
While credit counseling services can save you money, and definitely be worth the fee they charge, many are not trustworthy. Some companies hold onto your monthly payment for a month or more and collect interest on your money. Keep this in mind when selecting a company for this type of service. Many debt consolidation loans have higher interest rates, so this should also be investigated before closing a loan.
Both debt consolidation and credit counseling can provide a solution to lowering your monthly bills. You can find many resources to help make the right decision on the internet. Our website offers completely free information for consumers about debt consolidation. In conclusion, research is the key when it comes to getting your finances back on the right track.
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