If you were to personally take all your outstanding debts and combine them into one, you are essentially consolidating your debts. Doing so could be a significant help, as you would then only be making one debt payment each month, saving you time and money in the process.
As it turns out, there are various companies that can formally and legally assist you to do just that; i.e. consolidate your debts. If you contract with one, they will pay off all your current debts, allowing you to repay them the new loan they extend to you. At that point, you would no longer have different creditors, just your debt consolidation company. You might even pay a lower interest rate than some of your previous bills. However, their interest rate will reflect your previous situation.
If you are interested in obtaining several quotes for a potential consolidation loan, try using these hints for places to look:
* Online. The Internet is a valuable research tool. You can locate companies and evaluate their rates and services, all from the comfort of your home. You should be able to obtain all the information concerning the company that you need from their website.
* Banks. Some banks offer consolidation loans. These are a good means for banks of earning money, so many are now offering this service.
* Financial organizations. There may be a large number of financial lending companies that offer debt relief in your local area. Find out where they are and inquire about their services.
* Local government. You will be able to acquire a comprehensive list of all the debt relief services in your area. From this you should be able to find one that best suits your needs.
* Business directories. Look under the debt consolidation section. You will have many companies from which to select. Most of them will be able to provide you with a quote for their services.
If you are looking for a quote to consolidate your current debts, try one of the suggestions above. You will soon have a quote that you can weigh for improving your financial situation. You can certainly request as many quotes as you like and are under no obligation to commit to any of the services if they cannot meet your needs. Be persistent in your search, don't settle for less than you truly need, and work only with a debt consolidation company that clearly demonstrates its willingness to work cooperatively with you.
Wednesday, October 24, 2007
Student Loan Debt Consolidation
What are student loans?
Student loan debt consolidation is growing in popularity with recent college and university graduates. Student loans have become as much a staple in college life as a toga party: they are to be expected. Few undergrads can afford to finance their higher education without financial aid of some kind. Unlike a toga party, however, student loans last for years and must be repaid, and for many students this means student loan debt consolidation.
A student loan is money borrowed to pay for post-secondary education. A recent study shows that 63 percent (ref 1) of recent college graduates took out student loans to pay for school.
There are two types of student loans: federal and private. Federal loans are backed in full faith by the U.S. Government and, therefore, offer lower interest rates that do not accumulate until after graduation of the borrower. Private loans are obtained students or parents through private vendors such as banks or credit unions. Interest on a private loan accrues automatically from the time the loan is obtained.
Timely repayment is key go getting rid of debt accumulated by student loans. However, like any loan, high interest rates and late payments lead to an unstable financial future. At this point, many consider student loan debt consolidation.
Student loan debt consolidation
Multiple federal student loans can be consolidated into one loan with one interest rate. The average (rounded to the nearest eighth of a percent) of interest rates is applied to the new consolidated loan. There are no fees or charges, but the borrower must have reached his or her grace period (six months after graduation, or moving to half-time status with your school) before consolidating. Student loans may not be consolidated before you begin repaying or have entered your grace period.
The standard repayment term on federal loans is 10 years. Consolidating your loans may lower your monthly payments; however, you attain a larger principle and consequently extend your repayment time by much longer than the standard 10 years.
Key points to remember:
* Thoroughly research your student loan options, both federal and private
* Ensure that consolidating your student loans after your grace period will benefit you in the long run
Student loan debt consolidation is growing in popularity with recent college and university graduates. Student loans have become as much a staple in college life as a toga party: they are to be expected. Few undergrads can afford to finance their higher education without financial aid of some kind. Unlike a toga party, however, student loans last for years and must be repaid, and for many students this means student loan debt consolidation.
A student loan is money borrowed to pay for post-secondary education. A recent study shows that 63 percent (ref 1) of recent college graduates took out student loans to pay for school.
There are two types of student loans: federal and private. Federal loans are backed in full faith by the U.S. Government and, therefore, offer lower interest rates that do not accumulate until after graduation of the borrower. Private loans are obtained students or parents through private vendors such as banks or credit unions. Interest on a private loan accrues automatically from the time the loan is obtained.
Timely repayment is key go getting rid of debt accumulated by student loans. However, like any loan, high interest rates and late payments lead to an unstable financial future. At this point, many consider student loan debt consolidation.
Student loan debt consolidation
Multiple federal student loans can be consolidated into one loan with one interest rate. The average (rounded to the nearest eighth of a percent) of interest rates is applied to the new consolidated loan. There are no fees or charges, but the borrower must have reached his or her grace period (six months after graduation, or moving to half-time status with your school) before consolidating. Student loans may not be consolidated before you begin repaying or have entered your grace period.
The standard repayment term on federal loans is 10 years. Consolidating your loans may lower your monthly payments; however, you attain a larger principle and consequently extend your repayment time by much longer than the standard 10 years.
Key points to remember:
* Thoroughly research your student loan options, both federal and private
* Ensure that consolidating your student loans after your grace period will benefit you in the long run
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