In simple terms, a debt consolidation program allows you take a big loan that helps you pay off many of the debts that have piled up over a long period of time. These are quite beneficial to borrowers as in the long term; they help in improving the credit rating of the borrower.
The Best Time to Use This Program
Though such programs are not that bad a choice in any situation, there are a few instances wherein, they provide immeasurable value. For instance, if your debts have become a mess, instead of trying to make several monthly payments for different loans, you can just consolidate all your payments into one monthly payment.
This way, you just need to make a one time monthly payment for all your debts. Moreover, if the consolidation program helps in stretching out your debt payment over a long period of time, then there is a decrease in the monthly payments that you have to make. This leads to a subsequent monthly savings, freeing up that much needed cash.
A debt consolidation program will also help in the management of those troublesome high rate revolving debts that you might have had the misfortune of getting trapped in. At times people are saddled with a large amount of credit card balances. To make matter worse, these balances have a high rate of interest. A consolidation program will enable you to handle this debt and also help in the lowering of the interest rates.
No Debt Elimination
It must be understood that a debt consolidation program does not help eliminate your debt. It's a process that helps you pay off your debt in a convenient manner and at the same time enables you to save money.
The bottom line is that you will have to pay your debts sooner or later. You can't get away from them.
It's always important to consider that once you embark upon debt consolidation, there is a feeling that the outstanding debt has decreased. However, that is not the case, even if your credit cards show that there quite a lot of available credit.
Finding a Debt Consolidation Program to Suit Your Needs
If you are looking set to take this course of action, then it's important that you find a consolidation program that will suit all your requirements and will help achieve everything that you have set out to achieve.
One of the best ways to search for such a program is by approaching banks and various credit unions that you might already be working with. These sources are reliable and will definitely offer you a fair deal.
It's best that you manage your credit better if you want the best deals when it comes to consolidation of your debts. However, you must be cautioned that lenders play hard to get when you need them the most.
Friday, February 8, 2008
Availing Debt Consolidation Loans
Often people may find it difficult to keep up with many loans. Either they may be too busy that they miss the repayment schedules, or they may find that they do not have enough money to pay back the loans. Debt consolidation loans are taken out to consolidate many debts into a single debt.
A debt consolidation loan may be opted for in many situations. A person may have taken many loans for various needs and would be finding it difficult to manage all the repayment schedules. In such a case, a person may opt for a debt consolidation loan so that he or she needs to worry only about one consolidated repayment plan. In some other cases, a debt consolidation loan may be availed when a borrower has many loans of varying interest rates and needs to consolidate all such loans into a loan that charges lower interest. In other cases, people may opt for such a loan in order to manage loan repayments better by consolidating all loans into one single loan.
Debt consolidation loans are usually provided by lenders as a secured debt. This means that lenders will need collateral as security in order to provide the loan. Debt consolidation agents may assist borrowers to restructure an existing repayment plan so that some cost-savings may be availed while repaying existing loans. Even though debt consolidation loans can help one to manage the repayment of loans easily, one must be careful before one chooses to go in for a debt consolidation loan. As many may believe, it is not a solution that reduces existing debts. All the debts are consolidated into a new loan that is usually provided in lieu of valuable collateral.
A debt consolidation loan may be opted for in many situations. A person may have taken many loans for various needs and would be finding it difficult to manage all the repayment schedules. In such a case, a person may opt for a debt consolidation loan so that he or she needs to worry only about one consolidated repayment plan. In some other cases, a debt consolidation loan may be availed when a borrower has many loans of varying interest rates and needs to consolidate all such loans into a loan that charges lower interest. In other cases, people may opt for such a loan in order to manage loan repayments better by consolidating all loans into one single loan.
Debt consolidation loans are usually provided by lenders as a secured debt. This means that lenders will need collateral as security in order to provide the loan. Debt consolidation agents may assist borrowers to restructure an existing repayment plan so that some cost-savings may be availed while repaying existing loans. Even though debt consolidation loans can help one to manage the repayment of loans easily, one must be careful before one chooses to go in for a debt consolidation loan. As many may believe, it is not a solution that reduces existing debts. All the debts are consolidated into a new loan that is usually provided in lieu of valuable collateral.
Thursday, February 7, 2008
Online Student Loan Consolidation
Online Student Loan Consolidation is the best way to get your finances in order. As a Student, you may have many debts of varying amounts, payments going out at different times of the month, and spread over different time periods. It's very hard to keep track of your cash when in this situation.
By putting all your outstanding debts into one, an online student loan consolidation can offer you reduced interest and lower monthly payments.
Gone are the days when you need to worry about your debt bills escalating because you couldn't keep track of the times and amounts every month. The bank charges that were incurred because of some oversight on your part. All you'll have to think about is what plan will suit you best.
There are basically four different plans that you can opt for with online student loan consolidation. There is the 'one fits all' standard plan. The graduated plan (this will allow you to gradually increase your payments over time). The variable plan (your income will influence your payments. The more you earn, the more you pay).
And lastly, the flexible plan (If there are times when you are unable to make payment, this plan covers you).
Federal government student loan consolidation programs are a great alternative. They offer very low interest which you can feel safe in the knowledge that it's fixed. They also offer a longer repayment period, so your loan can be a lot lower, enabling you to manage your money with ease. Flexible repayments are also offered, so you are more in control of your money whilst getting your education.
There are some strict guidelines that have to be adhered to with the use of government loans. The applicant has to be an American Citizen, be over 18 years of age, be enrolled at an approved school and have good credit.
So, there are many positive factors to online student loan consolidation, just make sure you know exactly what you want from your loan and compare all your options. Remember, this is a long term commitment and you need to get the best deal possible.
By putting all your outstanding debts into one, an online student loan consolidation can offer you reduced interest and lower monthly payments.
Gone are the days when you need to worry about your debt bills escalating because you couldn't keep track of the times and amounts every month. The bank charges that were incurred because of some oversight on your part. All you'll have to think about is what plan will suit you best.
There are basically four different plans that you can opt for with online student loan consolidation. There is the 'one fits all' standard plan. The graduated plan (this will allow you to gradually increase your payments over time). The variable plan (your income will influence your payments. The more you earn, the more you pay).
And lastly, the flexible plan (If there are times when you are unable to make payment, this plan covers you).
Federal government student loan consolidation programs are a great alternative. They offer very low interest which you can feel safe in the knowledge that it's fixed. They also offer a longer repayment period, so your loan can be a lot lower, enabling you to manage your money with ease. Flexible repayments are also offered, so you are more in control of your money whilst getting your education.
There are some strict guidelines that have to be adhered to with the use of government loans. The applicant has to be an American Citizen, be over 18 years of age, be enrolled at an approved school and have good credit.
So, there are many positive factors to online student loan consolidation, just make sure you know exactly what you want from your loan and compare all your options. Remember, this is a long term commitment and you need to get the best deal possible.
Credit Card Debt - Fact or Fiction
Make no mistake about it, the banks do know better and are after one thing. Your money. In order to get it all they have to loan you more than you can afford to pay back. There are ways to avoid this and your spending habit is number on one.
To start with, for a full month go "WITH OUT". Don't spend money on what you don't "HAVE TO HAVE". Doing this will keep money in your pocket rather than a bill in the mail. We all to often love to buy now and pay later. This type of spending is the root of most all debt related problems. Further this leads to additional personal, professional and family related failures. Only you can change this spending habit. In order to grow financially we have to accept change.
For most, credit card debt is a way of life. It is the same as PBJ. Yes, the banks have been charging us interest on our credit card debts for many years. But, as the banks get smarter in their lending, new options to resolve these credit card debts become available to consumers. Then, The bankruptcy laws change to favor the banks. Wow, no surprise there. Not sure, but who funded this campaign?
As consumer debt continues to mount into the trillions, our options become more clear. We need to lookout for number one, so we don't fall in number two. With mounted debt, and a consumer knowing they can not continue the path they are on, There must be change. Their credit record may show a high score, but the facts are, there is no "credit report", there is only a "debt report". As your debt to credit ration makes up 35% of your score, your score may read high, but your borrowing power is simply not there.
Back to taking care of number one. If you say to yourself "I need help with my bills" and I can't pay my credit cards debt, you need to stop and take inventory. Go over last months spending and add up how much was useless spending, and how much was common debt. common debt is the normal monthly cost to get by.
As a consumer you have many options available to resolve your credit card debt, and or other unsecured debt. Balance transfers, and or debt consolidation loans are not the way out as you can not borrow your way out of debt. Do not fall prey to debt consolidation. Why hand your home over to a credit card company?
Clear and viable options to both bankruptcy and debt consolidation are available. As the industry of debt settlement and negations continues to grow, there are vast options and benefits that are available for consumers with unsecured credit card debt.
Things to look for in a debt settlement and negotiations company:
* Do they offer 24 hour support? Your needs do not stop, and neither should the support.
* Are their debt negotiators IAPDA Certified? This provides a level of experience far and above the average arbitrator
* Do they listen to and agree with your future goals and offer input to help reach them? As an experienced negotiations expert, I advise all consumers to reach out to and actualy talk to the person who will be negotiating for them.
*Do they have a clean BBB. The history of complaints will tell you about the practice the debt settlement and negotiations company you're considering.
* Memberships and associations are fine and well, but have nothing to do with the day to day operations of the company your looking at. The tell all will be "How You Feel after your first conversation with the person who will be negotiating for you, and the written guarantee they offer.
To start with, for a full month go "WITH OUT". Don't spend money on what you don't "HAVE TO HAVE". Doing this will keep money in your pocket rather than a bill in the mail. We all to often love to buy now and pay later. This type of spending is the root of most all debt related problems. Further this leads to additional personal, professional and family related failures. Only you can change this spending habit. In order to grow financially we have to accept change.
For most, credit card debt is a way of life. It is the same as PBJ. Yes, the banks have been charging us interest on our credit card debts for many years. But, as the banks get smarter in their lending, new options to resolve these credit card debts become available to consumers. Then, The bankruptcy laws change to favor the banks. Wow, no surprise there. Not sure, but who funded this campaign?
As consumer debt continues to mount into the trillions, our options become more clear. We need to lookout for number one, so we don't fall in number two. With mounted debt, and a consumer knowing they can not continue the path they are on, There must be change. Their credit record may show a high score, but the facts are, there is no "credit report", there is only a "debt report". As your debt to credit ration makes up 35% of your score, your score may read high, but your borrowing power is simply not there.
Back to taking care of number one. If you say to yourself "I need help with my bills" and I can't pay my credit cards debt, you need to stop and take inventory. Go over last months spending and add up how much was useless spending, and how much was common debt. common debt is the normal monthly cost to get by.
As a consumer you have many options available to resolve your credit card debt, and or other unsecured debt. Balance transfers, and or debt consolidation loans are not the way out as you can not borrow your way out of debt. Do not fall prey to debt consolidation. Why hand your home over to a credit card company?
Clear and viable options to both bankruptcy and debt consolidation are available. As the industry of debt settlement and negations continues to grow, there are vast options and benefits that are available for consumers with unsecured credit card debt.
Things to look for in a debt settlement and negotiations company:
* Do they offer 24 hour support? Your needs do not stop, and neither should the support.
* Are their debt negotiators IAPDA Certified? This provides a level of experience far and above the average arbitrator
* Do they listen to and agree with your future goals and offer input to help reach them? As an experienced negotiations expert, I advise all consumers to reach out to and actualy talk to the person who will be negotiating for them.
*Do they have a clean BBB. The history of complaints will tell you about the practice the debt settlement and negotiations company you're considering.
* Memberships and associations are fine and well, but have nothing to do with the day to day operations of the company your looking at. The tell all will be "How You Feel after your first conversation with the person who will be negotiating for you, and the written guarantee they offer.
Wednesday, February 6, 2008
Get a Debt Consolidation Loan to Manage Bad Debts
Bad debt can reach a point of disaster for the unwary consumer. If debt is creating havoc in your life, get a debt consolidation loan.
What is Bad Debt?
Bad debt is usually defined as unsecured debt, at relatively high interest rates, for purchases which do not have lasting value. Examples of bad debt are credit card balances which have resulted from dining out, vacations, luxury items, etc. Good debt, on the other hand, is debt that is assumed for something of lasting value, such as a mortgage loan on a home. A car loan, moreover, can be considered good debt if the loan is paid off with value still left in the car. When an individual reaches a point of excessive "bad" debt, and when that debt is becoming insurmountable and unpayable, it is time to consider getting a debt consolidation loan.
How a Debt Consolidation Loan Can Help
A debt consolidation loan rolls all bad debt into one loan, with a lower payment than that of the combined payments on the old debts. The goal is to get the debtor back on track, by setting up payment terms which can be afforded and which leave the individual free of bad debt once the loan is paid off. In theory, this can be a life-saver for the person who has allowed debt to get out of hand. In practice, however, other requirements are implied.
First, the debtor must determine what spending practices got him into this situation to begin with. If there is no identification of the causes, then the behaviors will not change, and the continuation of accumulating bad debt is almost assured. A good loan consolidation professional will engage in solid credit counseling, identifying what behaviors must change and developing a plan for these changes.
Second, a long-term plan for developing a budget and staying within that budget must be devised. An ethical debt consolidation professional will assist the debtor in establishing and implementing a realistic budget, so that, once the consolidation loan is paid, the individual may continue a lifestyle which will keep bad debt to a minimum. As well, a plan should be developed for regular saving, no matter how small, so that there will be emergency funds available when needed.
Sacrifice and self-discipline will be required of the debtor. The dangerous debt situation did not occur overnight, and, short of winning the lottery, will not be resolved quickly. It may take a few years or doing without luxuries, but, in long run, being free of bad debt will be well worth the effort. Then, as income continues to rise, the individual is able to pay all bills, save a good percentage, and have money left over for fun.
What is Bad Debt?
Bad debt is usually defined as unsecured debt, at relatively high interest rates, for purchases which do not have lasting value. Examples of bad debt are credit card balances which have resulted from dining out, vacations, luxury items, etc. Good debt, on the other hand, is debt that is assumed for something of lasting value, such as a mortgage loan on a home. A car loan, moreover, can be considered good debt if the loan is paid off with value still left in the car. When an individual reaches a point of excessive "bad" debt, and when that debt is becoming insurmountable and unpayable, it is time to consider getting a debt consolidation loan.
How a Debt Consolidation Loan Can Help
A debt consolidation loan rolls all bad debt into one loan, with a lower payment than that of the combined payments on the old debts. The goal is to get the debtor back on track, by setting up payment terms which can be afforded and which leave the individual free of bad debt once the loan is paid off. In theory, this can be a life-saver for the person who has allowed debt to get out of hand. In practice, however, other requirements are implied.
First, the debtor must determine what spending practices got him into this situation to begin with. If there is no identification of the causes, then the behaviors will not change, and the continuation of accumulating bad debt is almost assured. A good loan consolidation professional will engage in solid credit counseling, identifying what behaviors must change and developing a plan for these changes.
Second, a long-term plan for developing a budget and staying within that budget must be devised. An ethical debt consolidation professional will assist the debtor in establishing and implementing a realistic budget, so that, once the consolidation loan is paid, the individual may continue a lifestyle which will keep bad debt to a minimum. As well, a plan should be developed for regular saving, no matter how small, so that there will be emergency funds available when needed.
Sacrifice and self-discipline will be required of the debtor. The dangerous debt situation did not occur overnight, and, short of winning the lottery, will not be resolved quickly. It may take a few years or doing without luxuries, but, in long run, being free of bad debt will be well worth the effort. Then, as income continues to rise, the individual is able to pay all bills, save a good percentage, and have money left over for fun.
Consolidating School Loans - A Good Option For Every Student
Many of the students and parents find it difficult to cope up with the high cost of educational programs. School loans are of great convenience and significance for students, but the problem begins when time comes to payback. Loan consolidation gives you an opportunity to pay your debts only once in a month at a very low interest rate. This process of loan consolidation merges your multiple loans into one loan and it becomes easy for you to handle one loan instead of too many student loans.
Before deciding to get your school loans consolidate, you should know all the pros and cons of the process. You need to find out everything about it, so you know exactly if it is meant for you or not. Loan consolidation provides you a chance to make your monthly installments long term but at the same time it increases your total loan amount to be paid.
Sometimes the rate of interest fixed can be in your favor but sometimes it can be inconvenient for you. You might face loss if the interest rate in the market comes down to what you have been paying to the lender, as it is fixed and can not vary. In case of private loans the situation is quiet different. The interest rate for private loans is variable, it depends on the market. School loan consolidation is extremely beneficial in two situations:
• When you are already paying a much higher interest rate on credit cards or another type of debt.
• When you are borrowing money at a higher interest rate.
There are several advantages of getting the students loans consolidated, some given below:
1. Your life can be simplified by just paying once in a month.
2. The monthly installments made by the student towards his loan can be reduced by more than 50%.
3. By extending your time period for returning loan you will be paying low monthly installments.
4. It becomes easy to handle your finances because you just have to manage one.
5. 1% of interest rate is further reduced if the student is regular with his monthly payments.
6. To get your loans consolidate you do not need to pay any origination, processing or application fees.
At the same time, there are also few drawbacks of getting your loans consolidate, as given below:
• You forget that by extending your loan period you are adding to the total cost of the loan. The extra time you take increase interest on your loan. You are paying more interest in the long run.
• The interest rate is locked, which means if somewhere in future the interest rate in the market falls below to what you had been paying then you won't be left with the choice of changing, it as it is fixed.
• There is a possibility that the interest rate on your consolidated loan might be higher than the interest rate on your other loans.
• After graduation if your loan has been consolidated during the six month grace period, then you might loose the remainder of grace period.
Consolidating school loans is an intellectual option for students who are facing financial crisis during or after study. The decision of getting your school loans consolidate partly depends on how much you owe, how much you've already paid, and other personal financial variables.
Before deciding to get your school loans consolidate, you should know all the pros and cons of the process. You need to find out everything about it, so you know exactly if it is meant for you or not. Loan consolidation provides you a chance to make your monthly installments long term but at the same time it increases your total loan amount to be paid.
Sometimes the rate of interest fixed can be in your favor but sometimes it can be inconvenient for you. You might face loss if the interest rate in the market comes down to what you have been paying to the lender, as it is fixed and can not vary. In case of private loans the situation is quiet different. The interest rate for private loans is variable, it depends on the market. School loan consolidation is extremely beneficial in two situations:
• When you are already paying a much higher interest rate on credit cards or another type of debt.
• When you are borrowing money at a higher interest rate.
There are several advantages of getting the students loans consolidated, some given below:
1. Your life can be simplified by just paying once in a month.
2. The monthly installments made by the student towards his loan can be reduced by more than 50%.
3. By extending your time period for returning loan you will be paying low monthly installments.
4. It becomes easy to handle your finances because you just have to manage one.
5. 1% of interest rate is further reduced if the student is regular with his monthly payments.
6. To get your loans consolidate you do not need to pay any origination, processing or application fees.
At the same time, there are also few drawbacks of getting your loans consolidate, as given below:
• You forget that by extending your loan period you are adding to the total cost of the loan. The extra time you take increase interest on your loan. You are paying more interest in the long run.
• The interest rate is locked, which means if somewhere in future the interest rate in the market falls below to what you had been paying then you won't be left with the choice of changing, it as it is fixed.
• There is a possibility that the interest rate on your consolidated loan might be higher than the interest rate on your other loans.
• After graduation if your loan has been consolidated during the six month grace period, then you might loose the remainder of grace period.
Consolidating school loans is an intellectual option for students who are facing financial crisis during or after study. The decision of getting your school loans consolidate partly depends on how much you owe, how much you've already paid, and other personal financial variables.
Tuesday, February 5, 2008
Extra Steps To Make Debt Consolidation Work
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.
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.
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