When we’re staggering around knee deep in debt, we will often see debt consolidation as a way to move up to higher ground and get out of debt. With so many Americans being in debt, these debt consolidation programs are becoming more and more popular. However, they have some really significant disadvantages that one should consider before proceeding with this type of thing.
When going through a debt consolidation company, it will take you longer to pay off your debts. You may find that you are in for 20 or 30 years with one of these places depending upon how much debt you have accrued. That’s a huge commitment and a long time to be paying on debt.
Another disadvantage is that if you’re on with one of these companies for say, 20 years, that company could very well go out of business. A lot can happen in 20 years. If they do go out of business, and it’s handed over to some other owner or company, you might find yourself in a situation that can be messy and quite expensive. They may have new ‘terms’ or payments that you will have to make. This can be a bad situation for you.
When you are paying these smaller payments through debt consolidation companies, it can give you a false sense of security. You think that you’ve got everything under control, when in fact, you may not. If you still have those bad spending habits that caused you to rack up so much debt in the first place, you may just max your cards right back out again.
One great alternative to debt consolidation is to transfer all of your debt to your lowest interest credit card (if possible.) This will give you a bit more freedom as you won’t be paying huge interest rates while you’re trying to get your finances back on track.
Another great way is to pay off your highest interest rate card as fast as you can while you pay your other cards with the minimum amount. Once you get the highest interest rate card paid off, move the next highest one up and pay it off as quickly as you can and so on. A really great idea would be to cut those cards up after they have been paid off!
You can get back on track with your finances, and you can get out of the bog of debt. Think your choices through thoroughly and reconsider debt consolidation offers that you may have been thinking of going through with. Good luck.
Wednesday, October 3, 2007
Student Loan Consolidation Information
Student Loan Consolidation is a really useful repayment tool that gathers all your federal student loans and puts them into one loan, also significantly reducing your monthly payment. Student loan consolidation is one of the most popular used methods for reducing and paying off student debt. Student loan consolidation is a powerful financial tool which has the backing of the federal government to help you lower your payments by extending your repayment term. Student loan consolidation also gives you the opportunity to lock in at a low interest rate, which can save you a huge amount of money over time.
Federal student loan consolidation amalgamates all your existing loans into one single loan which will show a good future payment history, which will help you improve your all important credit score. These student loan consolidation benefits could save you hundreds, even thousands of dollars in additional interest over the term of your loan. Federally funded loans are initially administered through the US Department of Education's Federal Student Aid programs, and are usually the easiest to get student loan consolidation services for.
After student loan consolidation, the variable interest rate becomes a fixed interest rate for a set period of time. Many people suffer from bad credit and this can cause problems with trying to obtain that all important college loan consolidation funding but if you utilize services of a federal-based company, they don't do any credit checks and the top benefit of all, student loan consolidation is considered as good debt and will be more appealing to any future lenders. The Federal Student Loan Consolidation Program lets anyone with more than $7500 in outstanding Federal student loans (including PLUS loans) to reduce their monthly student loan repayments and lock in a low fixed interest rate.
Federal loan are sent to the controllers office at your school, you then sign it over to the school and it is applied to the balance owed to the school. Federal Loans and Private loans cannot be merged when you opt for student loan consolidation. Federal student loans offer low interest rates and deferred payments. Federal student loans are some of the most affordable loans available to students and families, with interest rates lower than most other forms of financing and deferred payments (principal and interest) until after graduation.
By consolidating your federal student loans first and improving your credit score, you could get a better interest rate. Anyone with outstanding non-federal education-related expenses is eligible to apply for a Private Consolidation Loan. Students can consolidate while still in school, during the six-month grace period immediately following graduation or during the repayment period. A student loan consolidation program is a lucrative and efficient way for students to deal with student debt.
Federal student loan consolidation amalgamates all your existing loans into one single loan which will show a good future payment history, which will help you improve your all important credit score. These student loan consolidation benefits could save you hundreds, even thousands of dollars in additional interest over the term of your loan. Federally funded loans are initially administered through the US Department of Education's Federal Student Aid programs, and are usually the easiest to get student loan consolidation services for.
After student loan consolidation, the variable interest rate becomes a fixed interest rate for a set period of time. Many people suffer from bad credit and this can cause problems with trying to obtain that all important college loan consolidation funding but if you utilize services of a federal-based company, they don't do any credit checks and the top benefit of all, student loan consolidation is considered as good debt and will be more appealing to any future lenders. The Federal Student Loan Consolidation Program lets anyone with more than $7500 in outstanding Federal student loans (including PLUS loans) to reduce their monthly student loan repayments and lock in a low fixed interest rate.
Federal loan are sent to the controllers office at your school, you then sign it over to the school and it is applied to the balance owed to the school. Federal Loans and Private loans cannot be merged when you opt for student loan consolidation. Federal student loans offer low interest rates and deferred payments. Federal student loans are some of the most affordable loans available to students and families, with interest rates lower than most other forms of financing and deferred payments (principal and interest) until after graduation.
By consolidating your federal student loans first and improving your credit score, you could get a better interest rate. Anyone with outstanding non-federal education-related expenses is eligible to apply for a Private Consolidation Loan. Students can consolidate while still in school, during the six-month grace period immediately following graduation or during the repayment period. A student loan consolidation program is a lucrative and efficient way for students to deal with student debt.
Monday, October 1, 2007
Debt Consolidation Student Loans - Shatter Your Debt And Achieve Financial Freedom Now
So you’re looking for debt consolidation for your student loan? Actually, these are not very hard to obtain. Debt consolidation can often times take a tremendous amount of pressure off your ability to pay off your student loan, because all your debt is now combined into one single payment.
Unfortunately, in today’s day and age, there are numerous people who find themselves deeply in debt often times to multiple creditors. This is especially true of students.
When you combine all your debts into one, as you do with debt consolidation for your student loans, it makes the payment process much simpler because the debt consolidation company will keep track of paying off all your creditors, as long as you pay the loan firm.
A common misconception nowadays is that debt consolidation actually lowers the total amount needed to pay off, although this generally is not the case. Even though debt consolidation makes the payment process much simpler, you usually still have to pay the same amount.
Debt consolidation loans are handed out in either of two ways: unsecured and secured debt consolidation loan. In order to obtain a secured loan, you will need to commit collateral in the case of non-payment. This will often be required of those with bad credit.
Here’s an important point: don’t beat yourself up for being in debt to multiple creditors. The world’s most successful businesspeople always find a way to turn a potential negative into a positive, and that’s what you need to do in this situation.
One other important fact: don’t focus on simply paying off your student loans, focus on attain everyone’s ultimate goal: financial freedom. There are very few feelings in the world as when you’ve achieved financial freedom, and can live however you want.
Therefore, obtain debt consolidation for your student loans. In the meantime, as you pay off your bills, read books about financially successful people, such as investors, business owners, etc., start putting into practice their habits and beliefs about money, and watch your financial situation change faster than you ever believed possible.
Unfortunately, in today’s day and age, there are numerous people who find themselves deeply in debt often times to multiple creditors. This is especially true of students.
When you combine all your debts into one, as you do with debt consolidation for your student loans, it makes the payment process much simpler because the debt consolidation company will keep track of paying off all your creditors, as long as you pay the loan firm.
A common misconception nowadays is that debt consolidation actually lowers the total amount needed to pay off, although this generally is not the case. Even though debt consolidation makes the payment process much simpler, you usually still have to pay the same amount.
Debt consolidation loans are handed out in either of two ways: unsecured and secured debt consolidation loan. In order to obtain a secured loan, you will need to commit collateral in the case of non-payment. This will often be required of those with bad credit.
Here’s an important point: don’t beat yourself up for being in debt to multiple creditors. The world’s most successful businesspeople always find a way to turn a potential negative into a positive, and that’s what you need to do in this situation.
One other important fact: don’t focus on simply paying off your student loans, focus on attain everyone’s ultimate goal: financial freedom. There are very few feelings in the world as when you’ve achieved financial freedom, and can live however you want.
Therefore, obtain debt consolidation for your student loans. In the meantime, as you pay off your bills, read books about financially successful people, such as investors, business owners, etc., start putting into practice their habits and beliefs about money, and watch your financial situation change faster than you ever believed possible.
Federal Government Student Loan Consolidation
The extremely high costs of higher learning have caused students around the nation to find alternative ways to pay off their tuitions. Students with these types of needs are easily comforted with different types of student loans from federal loans to private loans. These loans may be easy to get, however paying them off are not.
This is why students with many different loans sway towards federal government student loan consolidation to help them have lower monthly payments. This article will explore the different aspects of a federal government student loan consolidation plan, including its advantages and disadvantages.
Having a student loan consolidation may have many lucrative benefits, such as having lower monthly payments and a longer loan term for the loan. A federal government student loan consolidation allows students to consolidate their Stafford loans, PLUS Loans, and Federal Perkins Loans into one single debt. This allows the term for the loan to be increased resulting in lower monthly payments. In contrast from other student loans, consolidation loans permit you to have a fixed interest rate on the loan. Because of these reasons a federal student loan consolidation plan may reveal itself as being a very appealing option to students.
Nonetheless, even though at first sight a government student loan consolidation may seem extremely attractive, it may in the long run result in a larger total payment. By having longer loan terms this causes the total payment of your loan to be much higher than your original loan. Not only will you pay more in the long run, but any special traits your student loan might have had such as a grace period after you finish college, will be eliminated. This is why when choosing to consolidate your loans it is important to first study how consolidating your loans may affect you in the short and long term.
This is why students with many different loans sway towards federal government student loan consolidation to help them have lower monthly payments. This article will explore the different aspects of a federal government student loan consolidation plan, including its advantages and disadvantages.
Having a student loan consolidation may have many lucrative benefits, such as having lower monthly payments and a longer loan term for the loan. A federal government student loan consolidation allows students to consolidate their Stafford loans, PLUS Loans, and Federal Perkins Loans into one single debt. This allows the term for the loan to be increased resulting in lower monthly payments. In contrast from other student loans, consolidation loans permit you to have a fixed interest rate on the loan. Because of these reasons a federal student loan consolidation plan may reveal itself as being a very appealing option to students.
Nonetheless, even though at first sight a government student loan consolidation may seem extremely attractive, it may in the long run result in a larger total payment. By having longer loan terms this causes the total payment of your loan to be much higher than your original loan. Not only will you pay more in the long run, but any special traits your student loan might have had such as a grace period after you finish college, will be eliminated. This is why when choosing to consolidate your loans it is important to first study how consolidating your loans may affect you in the short and long term.
Alternate Consolidation Loan Student
Alternate student loan consolidation or more often called private student loan consolidation is the method of consolidating every private or non-federal borrowing for education in a single bill with only one payment in a month. Individuals, who consolidate their debt of private education loan, simplify their monthly finances by lowering their monthly payments of their education loans. The main task of a Federal Loan Consolidation for Students is to improve the credit rating of an individual. However, alternate consolidations have credit based interest rates. Individuals, who opt for federal consolidation to improve the credit rating, receive reasonable interest rates.
Facts and figures related:
The minimum borrowed sum from such consolidation cannot fall below $10,000 and should not exceed $250,000. If the loan amount exceeds $40,000, the applicant can have a period for repayment of around 25 years. For education loans below $40,000, period for repayment is around 20 years. The rate of interest in an alternate consolidation depends upon the credit rating of the applicant and lies in the range of 0% – 8.25 %. It is also affected by Margin Adjustment index. A consolidation can be performed on loan amounts of two people of the same family or between spouses.
Eligibility criteria and benefits:
People, who have outstanding debts in non-federal but education-associated expenditures, are Eligible for alternate student consolidation loan. The benefits of an alternative student loan consolidation are as follows:
Formation of a single loan comprising of all private loans for education
Monthly payments of the education loans are reduced
Release of the cosigners after 4 years
Reduction in rate of interests for payments made on time
No penalties prior to payment
Once you apply for an alternate education consolidation loan, the financial distress related to the prevailing loan can be easily removed.
Facts and figures related:
The minimum borrowed sum from such consolidation cannot fall below $10,000 and should not exceed $250,000. If the loan amount exceeds $40,000, the applicant can have a period for repayment of around 25 years. For education loans below $40,000, period for repayment is around 20 years. The rate of interest in an alternate consolidation depends upon the credit rating of the applicant and lies in the range of 0% – 8.25 %. It is also affected by Margin Adjustment index. A consolidation can be performed on loan amounts of two people of the same family or between spouses.
Eligibility criteria and benefits:
People, who have outstanding debts in non-federal but education-associated expenditures, are Eligible for alternate student consolidation loan. The benefits of an alternative student loan consolidation are as follows:
Formation of a single loan comprising of all private loans for education
Monthly payments of the education loans are reduced
Release of the cosigners after 4 years
Reduction in rate of interests for payments made on time
No penalties prior to payment
Once you apply for an alternate education consolidation loan, the financial distress related to the prevailing loan can be easily removed.
Wednesday, September 26, 2007
Debt Consolidation Loans- The Consolidator Of Irritating Debts
The constant phone calls and comments of the creditors have made your life displeasing as the debts are due. Moreover, subtracting the debts without adequate money is a challenging task. Because of this reason, you are now looking for an external finance, but in a perplexed state as numerous loan schemes are there. If you are looking for a reliable loan plan, considering the debt consolidation loans will be rational and rewarding one.
Debt consolidation loans provide the required amount of loans to the debtors to consolidate the multiple debts and to settle other debt related issues. To access the amount of debt consolidation loans, no specific eligibility is required and amount can be approved with or without placing collateral. The provision of not pledging security for loans has made the loans lucid and affordable for all. Among other strong objectives of debt consolidation loans, one is that it enables to consolidate numerous debts in a single amount, thus, lessening the debt burden and mental stress, as debtors becomes obligated to a particular creditor. Alongside with this mentioned benefit, preference should be given to debt consolidation loans because the funds can be utilized at low rate of interest. Like any other loan policy, debt consolidation loans have to be reimbursed within the stipulated date and time which is fixed and falls between 1-25 years.
The debt consolidation loans, as regarded earlier, are offered at low rates of interest, but following few steps might strengthen the financial base. Debtors while hunting for a marginal rate of interest should collect and compare the various proffered rates. The compare and contrast exercise will lead him or give him a major result. The cut down in the rates or monthly installments will help debtors to rebuild and restore the poor credit profile.
Debt consolidation loans have been acting or providing its services in the pace of electric as online technology is attached. The debtors can reach the lenders and get their loans approved within seconds from home or office by filling the online application procedure and the representative contact them at the earliest. So, applying debt consolidation can be regarded as the tip of the iceberg.
Debt consolidation loans provide the required amount of loans to the debtors to consolidate the multiple debts and to settle other debt related issues. To access the amount of debt consolidation loans, no specific eligibility is required and amount can be approved with or without placing collateral. The provision of not pledging security for loans has made the loans lucid and affordable for all. Among other strong objectives of debt consolidation loans, one is that it enables to consolidate numerous debts in a single amount, thus, lessening the debt burden and mental stress, as debtors becomes obligated to a particular creditor. Alongside with this mentioned benefit, preference should be given to debt consolidation loans because the funds can be utilized at low rate of interest. Like any other loan policy, debt consolidation loans have to be reimbursed within the stipulated date and time which is fixed and falls between 1-25 years.
The debt consolidation loans, as regarded earlier, are offered at low rates of interest, but following few steps might strengthen the financial base. Debtors while hunting for a marginal rate of interest should collect and compare the various proffered rates. The compare and contrast exercise will lead him or give him a major result. The cut down in the rates or monthly installments will help debtors to rebuild and restore the poor credit profile.
Debt consolidation loans have been acting or providing its services in the pace of electric as online technology is attached. The debtors can reach the lenders and get their loans approved within seconds from home or office by filling the online application procedure and the representative contact them at the earliest. So, applying debt consolidation can be regarded as the tip of the iceberg.
Debt Consolidation - Understanding Credit And Debt
Debt consolidation involves transferring the balances from multiple accounts with relatively high interest rates to one account with lower interest. A debt consolidation loan does not reduce debt so much as restructure it in beneficial ways.
Debts are either secured or unsecured. Secured debts are tied to a tangible asset like a car for a car loan or a house for a mortgage. If a borrower stops making payments, lenders can repossess the car or foreclose on the house. Unsecured debts are not tied to an asset. The most common types include credit cards, medical bills and signature loans.
Debt and Credit
Most people get into debt difficulties because credit is easy to get and hard to control. Here are some warning signs that debt may be getting out of hand:
- you can only make the minimum payments on your loans and other debts each month.
- you apply for new credit cards to pay off old ones, thus rotating, but not retiring, your debt.
- you are near the limit on all your cards and accounts.
- you are being denied new loans because of your bad credit history.
- you have had to resort to bad credit financing.
The rule of thumb when using credit is known as the 20/10 Rule: Don’t borrow more than 20% of your annual net income and don’t let your loan monthly payments get higher than 10% of your monthly net income. For example, if you take home $4,000 a month, your total payments on credit debt should be no higher than $400 (excluding your mortgage and second mortgage).
Learn more about other steps you can take, in addition to debt consolidation, by visiting www.badcreditsecondmortgagenow.com. There, you can also get a free quote on a debt consolidation loan to see if it could be a step in the right direction for you.
Debts are either secured or unsecured. Secured debts are tied to a tangible asset like a car for a car loan or a house for a mortgage. If a borrower stops making payments, lenders can repossess the car or foreclose on the house. Unsecured debts are not tied to an asset. The most common types include credit cards, medical bills and signature loans.
Debt and Credit
Most people get into debt difficulties because credit is easy to get and hard to control. Here are some warning signs that debt may be getting out of hand:
- you can only make the minimum payments on your loans and other debts each month.
- you apply for new credit cards to pay off old ones, thus rotating, but not retiring, your debt.
- you are near the limit on all your cards and accounts.
- you are being denied new loans because of your bad credit history.
- you have had to resort to bad credit financing.
The rule of thumb when using credit is known as the 20/10 Rule: Don’t borrow more than 20% of your annual net income and don’t let your loan monthly payments get higher than 10% of your monthly net income. For example, if you take home $4,000 a month, your total payments on credit debt should be no higher than $400 (excluding your mortgage and second mortgage).
Learn more about other steps you can take, in addition to debt consolidation, by visiting www.badcreditsecondmortgagenow.com. There, you can also get a free quote on a debt consolidation loan to see if it could be a step in the right direction for you.
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