The key to success with most endeavors is a plan and sticking to the plan, debt consolidation is not different. Getting into debt can happen so slowly over time and that is important to realize.
Why so important?
Understanding that debt can accumulate slowly helps you face the fact that getting out of debt is a slow process also. Yes it can be challenging. Yes it will most likely take time. But the rewards are worth all the effort and sacrifice. Getting out of debt takes dedication and perseverance.
However, there are a few additional steps you can take to put your getting out of debt plan on firm ground and give yourself the best chance to succeed.
Lose The Cards
The first step to success is to get rid all your extra credit cards. Keep one for an emergency only, that is until you've built your emergency fund. If you want to get serious about debt you need to remove all possible spending temptations.
As part of your plan you may want to consider doing a balance transfer of all your credit cards into one with a lower rate. This allows you to focus and know exactly how much money you'll need each month to cover your debt.
Another option may be the path of a consolidation loan from a bank for your debts, also with a lower interest rate and lower combined payments.
Pay With Cash
To keep your plan running and not grow any more debt start using cash for your purchases and only buy what you can really afford. The LCD TV is out. Start saving for it if you want it. If you don't have the cash you most likely cannot afford it. A part of any debt plan will require some changes to lifestyle and cutting back on some things. Live with it!
There will always be another deal and another sale. Do not try and reason with yourself that a small purchase will get you off track ? it can. That?s how you found yourself in debt to start with. Stay focused! This is your chance to get yourself back on track financially.
Tuesday, February 5, 2008
Monday, February 4, 2008
Free Debt Consolidation - Why Double Your Debt When Debt Settlement Could Cut It In Half
Let's look at this through clear vision, not those stressed out eyes that the loan officer has given you. Debt consolidation is simply moving several accounts over to one account. You still owe the same amount as you started with. Your interest rate may be a little lower and hey, maybe you get to skip a month or two with your new fancy loan "YOU BOUGHT". After looking at this clearly, if you used your homes equity to get this loan, you paid closing fees, title, escrow, points front and maybe back, costing you thousands to close your loan. Not including, the pre-funding cost. Maybe that was rolled into the loan. Great, you paid nothing up front. That's nice, but now you have to pay on it for 20-30 years. Looking at the comfort, a lower payment will give us is not always clear vision. Looking at the entire picture clearly you are handing over your financial freedom for life.
The American Dream is to own a home not owe for a home. Wrapping your homes equity into a consolidation loan to pay for unsecured debt is financial foolishness. Your home is in most cases, the largest most secured investment you may ever make.
When considering this debt consolidation loan, understand you may have just paid off all your loans and credit cards to a zero balance. Now, how many of you would now go close "all " those credit cards. Fact is, less than 10% will close them. In fact, more than 75% of debt consolidation consumers will have all those cards maxed out again in less than 2 years. You have just doubled your debt, and set yourself up for bankruptcy.
Free Debt Consolidation is a great pitch, It is Free right? Wrong. No up front cost? Great? No, the fees that were put into the loan are now drawing interest for the entire term of the loan. If you used your home as equity your going to pay on this for 20-30 years. Fees of 5,000.00 just went to around 25,000.00. Not good banking and does not help your big picture.
We only recommend Debt Consolidation if your in a position, before you start the loan process to have every account you owe worked out in Debt Settlement settlement to reduce what you have to pay to bring full resolve. Each unsecured account being paid should be closed with no further obligation. These settlements should be around 40% of what you owe. It is unlikely you will be able to get your creditors anywhere around this number without an IAPDA Certified Debt Arbitrator. You can try, but after you have become even more upset after talking to the bank and are drug around by your loan officer, making you chase records, and going nights without sleep you will hopefully see the non-sense in a debt consolidation loan. Doubling your debt just does not make sense. And even worse, the 20-30 year term makes you pay back even more than double.
You might even consider yourself a thrifty shopper. Ok, let's look at that. A shirt you paid $10.00 for at Walmart, now cost you $25.00, A night out and dinner may have cost you100.00, well in your new loan that all now cost you about $250.00. Pretty Clear, Life does not take Visa- Visa Takes Life. I have never gone into a store, handed the clerk cash, to be told, sorry we don't take cash.
The American Dream is to own a home not owe for a home. Wrapping your homes equity into a consolidation loan to pay for unsecured debt is financial foolishness. Your home is in most cases, the largest most secured investment you may ever make.
When considering this debt consolidation loan, understand you may have just paid off all your loans and credit cards to a zero balance. Now, how many of you would now go close "all " those credit cards. Fact is, less than 10% will close them. In fact, more than 75% of debt consolidation consumers will have all those cards maxed out again in less than 2 years. You have just doubled your debt, and set yourself up for bankruptcy.
Free Debt Consolidation is a great pitch, It is Free right? Wrong. No up front cost? Great? No, the fees that were put into the loan are now drawing interest for the entire term of the loan. If you used your home as equity your going to pay on this for 20-30 years. Fees of 5,000.00 just went to around 25,000.00. Not good banking and does not help your big picture.
We only recommend Debt Consolidation if your in a position, before you start the loan process to have every account you owe worked out in Debt Settlement settlement to reduce what you have to pay to bring full resolve. Each unsecured account being paid should be closed with no further obligation. These settlements should be around 40% of what you owe. It is unlikely you will be able to get your creditors anywhere around this number without an IAPDA Certified Debt Arbitrator. You can try, but after you have become even more upset after talking to the bank and are drug around by your loan officer, making you chase records, and going nights without sleep you will hopefully see the non-sense in a debt consolidation loan. Doubling your debt just does not make sense. And even worse, the 20-30 year term makes you pay back even more than double.
You might even consider yourself a thrifty shopper. Ok, let's look at that. A shirt you paid $10.00 for at Walmart, now cost you $25.00, A night out and dinner may have cost you100.00, well in your new loan that all now cost you about $250.00. Pretty Clear, Life does not take Visa- Visa Takes Life. I have never gone into a store, handed the clerk cash, to be told, sorry we don't take cash.
Sunday, February 3, 2008
Debt Consolidation Knowhow and Responsibility
The majority of Americans have more debt than actual money. Scary as it is, the reality of the situation is quite dismal and most indebted individuals find themselves with their heads down due to a seemingly lacking availability of options. But, there are certainly financial measures one can take to stop moping around, put that head upright once again and begin a more structured and less negatively driven financial status. If one feels that they are drowning in a sea of debt, consider initiating debt consolidation to better position one's self financially.
What Is it? What Does It Involve?
Debt Consolidation is a process involving the combining or consolidating of one's debts -whether they be in the form of personal loans, home equity loans, mortgage debt, credit card debt, car loans or other financial liabilities- into a single loan. Basically, the individual in debt is in essence accumulating all of his or her debt by taking out one loan to pay off all debts together, as one large sum or whole.
This is usually done with intent to achieve a lower monthly payment that can be extended over time, as to pay off debt through one vein and in one go gradually over a set amount of years. And if carried out properly, debt consolidation can and most certainly will lower one's annual interest rate and/or monthly payments, hence providing more available income month to month.
Problems After Consolidating
After going through debt consolidating, most people will start having some serious problems. These problems though are all self-driven and spurred by financial irresponsibility. As it stands, a much larger percentage of debt consolidators will swell back to their original levels of debt almost immediately after consolidating. Why? Well, for one, after consolidating some individuals, for whatever their reasoning, will go out and have a shopping bonanza, even to the point of maxing out credit cards. This though, is completely avoidable and can be dodged through sound financial behavior come post-consolidation.
Avoid Poor Financial Habits
To avoid bad financial habits and adding to the already established 66 percent or more of post-consolidators who accrued more debt they just "eliminated," there are a few tricks one can consider - but rather and much more recommended - adopt and utilize. Mainly, what needs to be formulated is a sense of stable and mature financial responsibility. Without this, attempting to avoid debt once again will prove more exhausting than anything.
Firstly, spend less. It's that simple. Spending less money by staying home to eat and even buying non-brand name brands at stores can help reduce living costs. Think economical here. Don't spend money when you don't need to. Even establish a budget, one outlining monthly expenditures and savings amounts. This will allow one to monitor their individual financial situation and tweak it as they see fit.
Be among the minority of Americans and possess financial soundness. Having no debt is possible, it's just a matter of having financial responsibility and fostering a well-rounded sense of spending well and not beyond one's means. By having no debt, one can have a financially free life and, isn't that what anyone wants in the long run anyway? So, what's the hold up? Begin debt consolidation now if one is caught in a financial tight spot, but maintain composure afterward with monetary matters.
What Is it? What Does It Involve?
Debt Consolidation is a process involving the combining or consolidating of one's debts -whether they be in the form of personal loans, home equity loans, mortgage debt, credit card debt, car loans or other financial liabilities- into a single loan. Basically, the individual in debt is in essence accumulating all of his or her debt by taking out one loan to pay off all debts together, as one large sum or whole.
This is usually done with intent to achieve a lower monthly payment that can be extended over time, as to pay off debt through one vein and in one go gradually over a set amount of years. And if carried out properly, debt consolidation can and most certainly will lower one's annual interest rate and/or monthly payments, hence providing more available income month to month.
Problems After Consolidating
After going through debt consolidating, most people will start having some serious problems. These problems though are all self-driven and spurred by financial irresponsibility. As it stands, a much larger percentage of debt consolidators will swell back to their original levels of debt almost immediately after consolidating. Why? Well, for one, after consolidating some individuals, for whatever their reasoning, will go out and have a shopping bonanza, even to the point of maxing out credit cards. This though, is completely avoidable and can be dodged through sound financial behavior come post-consolidation.
Avoid Poor Financial Habits
To avoid bad financial habits and adding to the already established 66 percent or more of post-consolidators who accrued more debt they just "eliminated," there are a few tricks one can consider - but rather and much more recommended - adopt and utilize. Mainly, what needs to be formulated is a sense of stable and mature financial responsibility. Without this, attempting to avoid debt once again will prove more exhausting than anything.
Firstly, spend less. It's that simple. Spending less money by staying home to eat and even buying non-brand name brands at stores can help reduce living costs. Think economical here. Don't spend money when you don't need to. Even establish a budget, one outlining monthly expenditures and savings amounts. This will allow one to monitor their individual financial situation and tweak it as they see fit.
Be among the minority of Americans and possess financial soundness. Having no debt is possible, it's just a matter of having financial responsibility and fostering a well-rounded sense of spending well and not beyond one's means. By having no debt, one can have a financially free life and, isn't that what anyone wants in the long run anyway? So, what's the hold up? Begin debt consolidation now if one is caught in a financial tight spot, but maintain composure afterward with monetary matters.
The Best Student Loan Consolidation Will Save You More Than Money
Having finished your coveted college degree with sheer determination and some help from your student loans, you have to make sure that you handle your finances well. You have to remember that the way your financial management works, in and out of school, has consequences that your credit history and credit score will retain.
Everybody knows the importance of having a well kept financial rating. In addition everyone knows that a credit score drops faster than it can go up. It will also take years and years of exemplary financial management again in order for you to get back on track of a good credit rating. That is the reason why for students who have multiple student loans, they need to search for the best student loan consolidation package available.
Graduates and students who are looking for the student loan consolidation are usually those who have incurred more than one student loan in their quest to finish their college education. If you think that funding a college education stops once you have paid for the tuition fees, then you might as well think again. There are more educational necessities which sustain a college student. Among them are dorm rent, meals, transportation and books as well as those unplanned for out of the blue miscellaneous expenses.
Albeit the fruit of having a college degree is sweet, students need to plan ahead on how they can manage the existence of multiple student loans. Hence, searching and applying for the best student loan consolidation should be a priority. The process involves the merging of several student loans into one major account with one interest rate. In loan consolidation, the monthly repayments may be lowered considerably..
In addition you can frequently find a lower interest rate when consolidating your student loans. Of course this will also help to lower your monthly loan payment as well.
Everybody knows the importance of having a well kept financial rating. In addition everyone knows that a credit score drops faster than it can go up. It will also take years and years of exemplary financial management again in order for you to get back on track of a good credit rating. That is the reason why for students who have multiple student loans, they need to search for the best student loan consolidation package available.
Graduates and students who are looking for the student loan consolidation are usually those who have incurred more than one student loan in their quest to finish their college education. If you think that funding a college education stops once you have paid for the tuition fees, then you might as well think again. There are more educational necessities which sustain a college student. Among them are dorm rent, meals, transportation and books as well as those unplanned for out of the blue miscellaneous expenses.
Albeit the fruit of having a college degree is sweet, students need to plan ahead on how they can manage the existence of multiple student loans. Hence, searching and applying for the best student loan consolidation should be a priority. The process involves the merging of several student loans into one major account with one interest rate. In loan consolidation, the monthly repayments may be lowered considerably..
In addition you can frequently find a lower interest rate when consolidating your student loans. Of course this will also help to lower your monthly loan payment as well.
Saturday, February 2, 2008
An Unsecured Debt Consolidation Loan Can Help Salvage Bad Credit
When it comes to getting rid of existing debts, nothing works as well as a debt consolidation loan. However, even amongst the range of loans in the market, the unsecured type seems to work the best in salvaging a poor credit history.
What it is
An unsecured debt consolidation loan is essentially one which does not necessitate the need for any collateral. This is unlike a secured loan which requires you to show some form of collateral like the house or some such asset. This can prove to be a great relief for someone who is desperately trying to get out of debt and happens to have a poor credit history. However, while this can be a boon, it also comes along with certain drawbacks.
Higher risk
The very fact that you don't need to present any upfront collateral in an unsecured debt consolidation loan makes lending institutions perceive it as a high risk venture. Hence the resulting interest rate on the loan is definitely much higher than what you would ideally pay on a secured loan type. However, as a borrower, it is up to you to negotiate and bargain to try and extract the best possible interest rate out of the unsecured loan.
Consolidating multiple payments
If you are currently steeped in debt, then chances are that you must be paying high amounts on multiple liabilities. Outstanding balances on credit cards as well as existing loans etc. can eat into your finances. Hence in such cases, it offers you a way of consolidating all these multiple payments into a single payment. This saves you the hassle of remembering due dates for multiple bills and allows you to remember details of just one single payment each month. Plus usually since interest rates are much lesser than regular liabilities, you save much more.
Multiple interest rates
One other drawback with having to pay multiple payments is that you also need to keep track of different interest rates. While your credit card outstanding balances might have a certain interest rate on them, the loans may have another interest rate. Keeping track of all these varying rates can be a real hassle. That is why an unsecured debt consolidation loan can work to your advantage. You just need to make one payment each month with a single interest rate, which is much easier to monitor. This also saves you unnecessary worry.
Scope to improve credit rating
A debt consolidation scheme allows a person in debt to improve his existing credit history. By rectifying past patterns of missed or delayed payments, a borrower can improve on the score. If existing liabilities have a history of delayed and late payments, then by consolidating your liabilities, you are able to keep better track of finances. Plus you also get to reduce the tenure of repayment by paying off the amount each month promptly. By improving your credit score, you stand much better chances at getting other credit offers. You may want to opt for a home loan or some other credit to pay off a much needed education etc.
What it is
An unsecured debt consolidation loan is essentially one which does not necessitate the need for any collateral. This is unlike a secured loan which requires you to show some form of collateral like the house or some such asset. This can prove to be a great relief for someone who is desperately trying to get out of debt and happens to have a poor credit history. However, while this can be a boon, it also comes along with certain drawbacks.
Higher risk
The very fact that you don't need to present any upfront collateral in an unsecured debt consolidation loan makes lending institutions perceive it as a high risk venture. Hence the resulting interest rate on the loan is definitely much higher than what you would ideally pay on a secured loan type. However, as a borrower, it is up to you to negotiate and bargain to try and extract the best possible interest rate out of the unsecured loan.
Consolidating multiple payments
If you are currently steeped in debt, then chances are that you must be paying high amounts on multiple liabilities. Outstanding balances on credit cards as well as existing loans etc. can eat into your finances. Hence in such cases, it offers you a way of consolidating all these multiple payments into a single payment. This saves you the hassle of remembering due dates for multiple bills and allows you to remember details of just one single payment each month. Plus usually since interest rates are much lesser than regular liabilities, you save much more.
Multiple interest rates
One other drawback with having to pay multiple payments is that you also need to keep track of different interest rates. While your credit card outstanding balances might have a certain interest rate on them, the loans may have another interest rate. Keeping track of all these varying rates can be a real hassle. That is why an unsecured debt consolidation loan can work to your advantage. You just need to make one payment each month with a single interest rate, which is much easier to monitor. This also saves you unnecessary worry.
Scope to improve credit rating
A debt consolidation scheme allows a person in debt to improve his existing credit history. By rectifying past patterns of missed or delayed payments, a borrower can improve on the score. If existing liabilities have a history of delayed and late payments, then by consolidating your liabilities, you are able to keep better track of finances. Plus you also get to reduce the tenure of repayment by paying off the amount each month promptly. By improving your credit score, you stand much better chances at getting other credit offers. You may want to opt for a home loan or some other credit to pay off a much needed education etc.
Higher Education and Debt Consolidation
Higher education costs have almost skyrocketed in last few decades. So education requirements are often more than one loan. Students are sometimes employed but receive very low salaries at entry level and they are left with staggering debt burdens.
Even though they possess considerable talent they are unable to pursue higher educational needs because of their financial situations at home. If they desire to continue their education then they have to apply for student loans that are an additional cost burden to the family and the student who do not have the financial capacity to repay the loans.
Federal student loans for debt consolidation have been designed to help the students by combining all their debts into a single loan to be paid monthly. This makes their life more easy and they do not have to live in the threat of debt burdens just when their careers are about to start.
These loans are designed to tailor to the needs of different student from different background and challenges. So there is one best deal for each one of those who apply for such loans. Each of these loan packages designed distinctly exhibit diverse interest rates.
Applying for federal student loan consolidation requires a little bit of research on the net. There are many online links that offers excellent consolidation opportunities for students.
A Federal student loan consolidation bears lower interest rate and makes repayment a much easier task for students. This loan does not require a co-signer. No credit check is performed from the lending agency while approving this loan.
This Federal consolidation loan does not have hidden charges or processing fees during the time of application and over the loan period. Penalties for early repayment are also never charged.
Before you choose your lender you just need to know your package very well. You also need to know the kind of support your lending agency is going to provide over the loan period. If you have other loans with one lender then it is best that you approach the same lender to consolidate your existing loans into a single federal consolidation loan.
Choosing the lender is definitely important to ensure that you are offered the best deal at competitive market rate and you need to worry about your credit reporting status. Please ensure that your lending agency reports your timely payment to the credit bureaus and your credit score is up to date. Otherwise there is no point choosing a lender who is reluctant to do so and in this process your credit history gets marred even before it is created properly.
Even though they possess considerable talent they are unable to pursue higher educational needs because of their financial situations at home. If they desire to continue their education then they have to apply for student loans that are an additional cost burden to the family and the student who do not have the financial capacity to repay the loans.
Federal student loans for debt consolidation have been designed to help the students by combining all their debts into a single loan to be paid monthly. This makes their life more easy and they do not have to live in the threat of debt burdens just when their careers are about to start.
These loans are designed to tailor to the needs of different student from different background and challenges. So there is one best deal for each one of those who apply for such loans. Each of these loan packages designed distinctly exhibit diverse interest rates.
Applying for federal student loan consolidation requires a little bit of research on the net. There are many online links that offers excellent consolidation opportunities for students.
A Federal student loan consolidation bears lower interest rate and makes repayment a much easier task for students. This loan does not require a co-signer. No credit check is performed from the lending agency while approving this loan.
This Federal consolidation loan does not have hidden charges or processing fees during the time of application and over the loan period. Penalties for early repayment are also never charged.
Before you choose your lender you just need to know your package very well. You also need to know the kind of support your lending agency is going to provide over the loan period. If you have other loans with one lender then it is best that you approach the same lender to consolidate your existing loans into a single federal consolidation loan.
Choosing the lender is definitely important to ensure that you are offered the best deal at competitive market rate and you need to worry about your credit reporting status. Please ensure that your lending agency reports your timely payment to the credit bureaus and your credit score is up to date. Otherwise there is no point choosing a lender who is reluctant to do so and in this process your credit history gets marred even before it is created properly.
Friday, February 1, 2008
How To Use Debt Reduction Consolidation Services
It is hard to get through life with out attaining some debt. It is very rare to have all of the money for your first house, your education, or for vehicles without borrowing some. It is helpful to have the smallest burden possible when paying back these things. Debt reduction consolidation services can help.
The first thing that these services will do is give you expert advise and counseling on debt management. You will gain insight from their credit education. They will teach you how to live a debt free life. They will explain the best way to get out of debt, and the best options for repayment plans of loans.
Don't worry, the people giving this advise are not trying to sell you something in particular. They are financial professionals, and are not in the sales department. They truly have your best interest in mind. The techniques that they'll suggest are aggressive and can help you very much.
The main two choices for eliminating debt are bankruptcy chapter 7 and debt settlement. Bankruptcy will eliminate all debts, but it will take all of your assets as well (to pay back as much of the debt as possible). In addition, it will ruin your credit score. As a last resort, it can be used. It is quite difficult to meet eligibility requirements for chapter 7, however.
The other option is debt settlement. It will consolidate your debt and lower the overall amount by at least 40%. Paying back only 60% of what you would have to pay if you didn't do debt settlement is a huge help. Through consolidation services, 30-45% of what you owe can be saved, if it's done within three years.
The range of people from those with bad credit to the average consumer who run into debt problems is not unusual. None of us were born with the knowledge and ability to understand money and managing it. Money management is something everyone must learn.
Individuals who receive their pay sporadically like once per month or commission based pay can quickly see the end of their money before their next check arrives. They typically turn to their credit card as their way to cover the shortfall of cash.
The first thing that these services will do is give you expert advise and counseling on debt management. You will gain insight from their credit education. They will teach you how to live a debt free life. They will explain the best way to get out of debt, and the best options for repayment plans of loans.
Don't worry, the people giving this advise are not trying to sell you something in particular. They are financial professionals, and are not in the sales department. They truly have your best interest in mind. The techniques that they'll suggest are aggressive and can help you very much.
The main two choices for eliminating debt are bankruptcy chapter 7 and debt settlement. Bankruptcy will eliminate all debts, but it will take all of your assets as well (to pay back as much of the debt as possible). In addition, it will ruin your credit score. As a last resort, it can be used. It is quite difficult to meet eligibility requirements for chapter 7, however.
The other option is debt settlement. It will consolidate your debt and lower the overall amount by at least 40%. Paying back only 60% of what you would have to pay if you didn't do debt settlement is a huge help. Through consolidation services, 30-45% of what you owe can be saved, if it's done within three years.
The range of people from those with bad credit to the average consumer who run into debt problems is not unusual. None of us were born with the knowledge and ability to understand money and managing it. Money management is something everyone must learn.
Individuals who receive their pay sporadically like once per month or commission based pay can quickly see the end of their money before their next check arrives. They typically turn to their credit card as their way to cover the shortfall of cash.
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