A debt consolidation loan pays for multiple other loans or lines of credit. If you find yourself swimming in debt, this might be a good option. Debt consolidation loan is the best option when you have maxed out your credit cards and are yet paying for your car and house.
A debt consolidator will help you in making a single payment instead of making multiple payments. Managing your finances gets much easier. Also the interest rates on a debt consolidation loan are less since most of the debt consolidation loans are nothing but a home equity loan. Another good part is that since the interest rates are low, your payment is significantly reduced. If you have any issues or come up with questions, you have to make a single call to your credit counsellor instead of making several calls. One more advantage lies in the fact that the interest paid to a mortgage can be used as a tax write-off. This benefits you from a tax perspective.
Before you run out to get a debt consolidation loan, you also need to factor in the cons associated with this loan. For one, it is very easy to fall further into the debt trap. Since you will be left with more money at the end of the month, you will consider blowing it away rather than paying up for your debt. With the current economic situation, most mortgages are 30 year mortgages and this means you will end up paying your loan for the next 30 years. In terms of dollar amounts and over the lifetime of the loan, you will be spending much more than if you were to pay off the individual loans. The debt consolidation loan is against your home. This makes a debt consolidation loan a secured loan. Your creditors will take away whatever secured your loan and in this case it is your home.
As you can clearly see, debt consolidation loan are not for everyone. You have to look at the advantages and the disadvantages and make the correct decision for yourself.
Wednesday, July 25, 2007
Debt consolidation loans - Secrets revealed
Sometimes you tend to get into the downward spiral of debt and there seems to be no ending. You feel you are paying too much on your credit cards and loans. You get aggravated because you are unable to find any solution to your loan problems. However, a debt consolidation loan, if used correctly can come to your rescue.
Debt consolidation loan is a loan that can be taken against the equity of your house. These are also called as secured loans since your house is a security for getting the loan. All your loans can be replaced by a single debt consolidation loan and now on, you make only a single payment.
Debt consolidation loans can give you a fresh perspective on managing your loans and giving you the ability to make only a single payment. Most debt consolidation loans are at a lower rate of interest compared to credit cards or personal loans. A debt consolidation loan will sweep away the pile of credit cards, store cards and other loans you might have.
The debt consolidation loan will free up the equity in your house to repay all you other debts. It can reduce your interest costs and monthly repayments putting you back in control of your life.
Debt consolidation rates are different and available depending on your individual status. Your monthly repayment will depend on your amount borrowed and term. To professionally handle your payments contact a debt counsellor in your neighbourhood. Debt counsellors are certified agents who can work with you on your debt consolidation requests and get you the peace of mind you deserve.
Debt consolidation loan, if not used appropriately can lead you to misery. If you get into a feeling that you have enough equity and now you can rack up even further debt, you will enter a downward spiral and you will not be able to get out of it. It is best advised to use a debt consolidation loan wisely.
Debt consolidation loan is a loan that can be taken against the equity of your house. These are also called as secured loans since your house is a security for getting the loan. All your loans can be replaced by a single debt consolidation loan and now on, you make only a single payment.
Debt consolidation loans can give you a fresh perspective on managing your loans and giving you the ability to make only a single payment. Most debt consolidation loans are at a lower rate of interest compared to credit cards or personal loans. A debt consolidation loan will sweep away the pile of credit cards, store cards and other loans you might have.
The debt consolidation loan will free up the equity in your house to repay all you other debts. It can reduce your interest costs and monthly repayments putting you back in control of your life.
Debt consolidation rates are different and available depending on your individual status. Your monthly repayment will depend on your amount borrowed and term. To professionally handle your payments contact a debt counsellor in your neighbourhood. Debt counsellors are certified agents who can work with you on your debt consolidation requests and get you the peace of mind you deserve.
Debt consolidation loan, if not used appropriately can lead you to misery. If you get into a feeling that you have enough equity and now you can rack up even further debt, you will enter a downward spiral and you will not be able to get out of it. It is best advised to use a debt consolidation loan wisely.
Consolidate your credit card debt
With the popularity of plastic money these days, credit cards are gaining immense importance. With growing usage of credit card the number of people in debt and the amount of debt for each of them is also increasing at a fast pace. Almost every household in the US today is undergoing the threats of debt problems. People undergoing credit card debts should ideally opt for debt consolidation in order to lead a debt free life. In the US more than half of the population has an average of $8000 debts, only because of the usage of credit cards.
You must be eager to know:
• How is the process of debt consolidation beneficial to settle credit card debts?
• How is it useful to consolidate my credit card debts?
A credit card debt consolidation loan can be a resource to consolidate the outstanding balances on your cards into one single loan. They can also be transferred to one single card that has a lower interest rate than the ones you are currently paying. The path to savings should be very cautiously chalked out and one needs to make calculated moves all the time. It is advisable to opt for credit cards with low interest rates rather than paying high interest rates for some credit cards. Calculate the interest on your credit card debts and transfer it accordingly. We offer free membership.
The ideal way to consolidate your credit card debts!
For better understanding find out how consolidating your credit card debts can be helpful.
Let's say you have $100 in outstanding credit card debt and the average annual percentage rate (APR) on that card is 18 %. If the outstanding balance remains at $100 then over the course of a year you would pay approximately $18 in interest charges alone. If you consolidate your credit card debt into a single loan with a lower interest rate or if you do a balance transfer onto a credit card with a low interest rate you would save a significant amount of money.
If the new loan or credit card have a 9% APR then you would save roughly $10 in interest charges over the course of that same year. If you save $10 for a debt of $100, then think about a debt of $10,000. This trick will save you $1,000 over the course of that same year. Just think of $100,000 debts; you can save $10,000. And this amount of $10,000 can be used to repay some of your debts. Life becomes easy with simple calculations and cautious moves.
If you are undergoing major debt problems feel free to contact us. Our experts will help you to consolidate your debts and restore your financial position. Consolidating your debt is perhaps the fastest, safest and best way today to get rid of your financial obligations and we are experts in this field. Fill our free membership form to view all the alternatives. With debt consolidation we are here to consolidate all your financial loans in a single monthly payment. We help you in your journey towards being debt free. You can take a look at the following articles
You must be eager to know:
• How is the process of debt consolidation beneficial to settle credit card debts?
• How is it useful to consolidate my credit card debts?
A credit card debt consolidation loan can be a resource to consolidate the outstanding balances on your cards into one single loan. They can also be transferred to one single card that has a lower interest rate than the ones you are currently paying. The path to savings should be very cautiously chalked out and one needs to make calculated moves all the time. It is advisable to opt for credit cards with low interest rates rather than paying high interest rates for some credit cards. Calculate the interest on your credit card debts and transfer it accordingly. We offer free membership.
The ideal way to consolidate your credit card debts!
For better understanding find out how consolidating your credit card debts can be helpful.
Let's say you have $100 in outstanding credit card debt and the average annual percentage rate (APR) on that card is 18 %. If the outstanding balance remains at $100 then over the course of a year you would pay approximately $18 in interest charges alone. If you consolidate your credit card debt into a single loan with a lower interest rate or if you do a balance transfer onto a credit card with a low interest rate you would save a significant amount of money.
If the new loan or credit card have a 9% APR then you would save roughly $10 in interest charges over the course of that same year. If you save $10 for a debt of $100, then think about a debt of $10,000. This trick will save you $1,000 over the course of that same year. Just think of $100,000 debts; you can save $10,000. And this amount of $10,000 can be used to repay some of your debts. Life becomes easy with simple calculations and cautious moves.
If you are undergoing major debt problems feel free to contact us. Our experts will help you to consolidate your debts and restore your financial position. Consolidating your debt is perhaps the fastest, safest and best way today to get rid of your financial obligations and we are experts in this field. Fill our free membership form to view all the alternatives. With debt consolidation we are here to consolidate all your financial loans in a single monthly payment. We help you in your journey towards being debt free. You can take a look at the following articles
Debt settlement vs Debt consolidation
Debt settlement and debt consolidation both offer ways of reducing your debt. Debt settlement eliminates part of your loans, while debt consolidation reduces interest rates. Even though debt consolidation has the least impact on your credit score, there are cases when debt settlement is a better option.
Lower Debt
The goal of both debt settlement and debt consolidation is to lower your debt. Debt settlement companies negotiate with your creditors to sometimes reduce the amount of your loans. You will be charged a fee, and the debt reduction will remain on your credit score for seven years.
Debt settlement can reduce your debt 10% to 50%. To get the most out of the program, pay off the rest of your debt as soon as possible. Also, close accounts that you don’t plan on using to raise your credit score.
Debt consolidation pays off your high interest debts with a low interest loan. Home equity loans provide the lowest rates, but personal loans can also be used. With rates lower on your debt, you can pay off the principal sooner by making the same monthly payments.
Credit Score Implication
Reducing your loans through debt settlement is a serious mark to creditors. You credit score will drop, making you ineligible for conventional loans. But you can apply for subprime credit after a year. After a couple of years of good credit habits, you can then apply for lower rate conventional loans.
Taking out a loan to consolidate your debt will have a slight impact on your credit. Since your debt isn’t actually increasing, you will only be hit for opening another account. By closing your paid off accounts, you can partially offset the penalty. In a short period though, you will be in good credit standing if you follow best practices with your credit.
Financial Choices
No one financial choice fits everyone’s needs. While debt consolidation has the least affect on your credit report, additional loans may be too expensive. In extreme cases, debt settlement can help to avoid bankruptcy. Before deciding on an option, look at what companies are offering in terms of rates and fees. And if you need additional advice, talk to a credit counselor who can take a look at your finances and offer suggestions.
Lower Debt
The goal of both debt settlement and debt consolidation is to lower your debt. Debt settlement companies negotiate with your creditors to sometimes reduce the amount of your loans. You will be charged a fee, and the debt reduction will remain on your credit score for seven years.
Debt settlement can reduce your debt 10% to 50%. To get the most out of the program, pay off the rest of your debt as soon as possible. Also, close accounts that you don’t plan on using to raise your credit score.
Debt consolidation pays off your high interest debts with a low interest loan. Home equity loans provide the lowest rates, but personal loans can also be used. With rates lower on your debt, you can pay off the principal sooner by making the same monthly payments.
Credit Score Implication
Reducing your loans through debt settlement is a serious mark to creditors. You credit score will drop, making you ineligible for conventional loans. But you can apply for subprime credit after a year. After a couple of years of good credit habits, you can then apply for lower rate conventional loans.
Taking out a loan to consolidate your debt will have a slight impact on your credit. Since your debt isn’t actually increasing, you will only be hit for opening another account. By closing your paid off accounts, you can partially offset the penalty. In a short period though, you will be in good credit standing if you follow best practices with your credit.
Financial Choices
No one financial choice fits everyone’s needs. While debt consolidation has the least affect on your credit report, additional loans may be too expensive. In extreme cases, debt settlement can help to avoid bankruptcy. Before deciding on an option, look at what companies are offering in terms of rates and fees. And if you need additional advice, talk to a credit counselor who can take a look at your finances and offer suggestions.
Debt consolidation part-2
These are a few Debt Consolidation facts that you should know about – Part 2
In part 1 I talked about debt consolidation and its pros and cons. In this article, I talked about different benefits of debt conslidation.
•Reduce, and eventually eliminate your high interest payments today with debt consolidation.
•Debt Consolidation company will provide you with informational resources and financial tools that you will need to help improve your personal finances.
•Debt consolidation programs are designed for someone who is behind or not paying at all.
•Debt Consolidation companies do not lend you money.
•The Debt Consolidation Program gets you out of debt, helps you avoid bankruptcy, and helps you avoid the trap of enrolling in a debt consolidation program.
•Debt consolidation is a debt repayment plan that eases your payments by lowering interest rates and eliminating your late fees.
•Debt settlement is not a public record, whereas bankruptcy is.
•Debt Consolidation is typically defined as taking your high-interest loans and credit cards and consolidating them into one, low-interest, convenient monthly payment.
•A debt management program allows you to make a single monthly payment that is in turn distributed to your creditors.
•In a debt management program, you actually repay the debt and clean up your credit report by eliminating the debts.
•Credit card companies prefer that people deal with specialized Debt Management firms who take on the huge burden of repayment agreements and terms as well as all the attendant paperwork.
In part 1 I talked about debt consolidation and its pros and cons. In this article, I talked about different benefits of debt conslidation.
•Reduce, and eventually eliminate your high interest payments today with debt consolidation.
•Debt Consolidation company will provide you with informational resources and financial tools that you will need to help improve your personal finances.
•Debt consolidation programs are designed for someone who is behind or not paying at all.
•Debt Consolidation companies do not lend you money.
•The Debt Consolidation Program gets you out of debt, helps you avoid bankruptcy, and helps you avoid the trap of enrolling in a debt consolidation program.
•Debt consolidation is a debt repayment plan that eases your payments by lowering interest rates and eliminating your late fees.
•Debt settlement is not a public record, whereas bankruptcy is.
•Debt Consolidation is typically defined as taking your high-interest loans and credit cards and consolidating them into one, low-interest, convenient monthly payment.
•A debt management program allows you to make a single monthly payment that is in turn distributed to your creditors.
•In a debt management program, you actually repay the debt and clean up your credit report by eliminating the debts.
•Credit card companies prefer that people deal with specialized Debt Management firms who take on the huge burden of repayment agreements and terms as well as all the attendant paperwork.
What is Debt Consolidation- Part-1
These are a few Debt Consolidation facts that you should know about.
Debt Consolidation, Debt Releif, Debt Reduction, is a strategy sometimes used by consumers to better manage their debt problems. Rather than paying off several separate bills each month, a consumer consolidates his or her debts with a financial institution that will arrange for one lower monthly payment extending over a period of time.
•A person who enters a Debt Consolidation plan will get out of debt years sooner than those who try on their own because this is accomplished through interest rate reductions, elimination of late fees & penalties, and a lower monthly payment.
•Debt Consolidation companies have relationships with thousands of creditors nationwide, so the creditors will be willing to work with them because of the success in helping people in resolving their credit issues.
•Debt Consolidation companies currently help over 1 million people to consolidate their unsecured loans, bills, and credit card debts into one easy payment, while saving thousands of dollars in unnecessary interest & credit fees. Join now and enjoy the financial benefits of credit consolidation
•People who enter a Debt Consolidation plan does not have to give up all their credit cards, and may include only those credit cards that they wish to consolidate.
•Credit Consolidation and Debt Consolidation services are a safe, reasonably fast and easy way for you to get out of debts.
•Debt problems will be handled through a registered non-profit Debt Counseling office to secure you the best possible consolidation services that allow you to consolidate your loans and debts into one low payment.
•Over half of all American households have trouble meeting their minimum monthly obligations so, if this is your situation, enter a Debt Consolidation program and become a debt free person.
•Since the average household has 14 credit cards, debt consolidation companies were created to help those families concerned with credit debt elimination.
•Debt Consolidation programs are legal and ethical processes.
Debt Consolidation, Debt Releif, Debt Reduction, is a strategy sometimes used by consumers to better manage their debt problems. Rather than paying off several separate bills each month, a consumer consolidates his or her debts with a financial institution that will arrange for one lower monthly payment extending over a period of time.
•A person who enters a Debt Consolidation plan will get out of debt years sooner than those who try on their own because this is accomplished through interest rate reductions, elimination of late fees & penalties, and a lower monthly payment.
•Debt Consolidation companies have relationships with thousands of creditors nationwide, so the creditors will be willing to work with them because of the success in helping people in resolving their credit issues.
•Debt Consolidation companies currently help over 1 million people to consolidate their unsecured loans, bills, and credit card debts into one easy payment, while saving thousands of dollars in unnecessary interest & credit fees. Join now and enjoy the financial benefits of credit consolidation
•People who enter a Debt Consolidation plan does not have to give up all their credit cards, and may include only those credit cards that they wish to consolidate.
•Credit Consolidation and Debt Consolidation services are a safe, reasonably fast and easy way for you to get out of debts.
•Debt problems will be handled through a registered non-profit Debt Counseling office to secure you the best possible consolidation services that allow you to consolidate your loans and debts into one low payment.
•Over half of all American households have trouble meeting their minimum monthly obligations so, if this is your situation, enter a Debt Consolidation program and become a debt free person.
•Since the average household has 14 credit cards, debt consolidation companies were created to help those families concerned with credit debt elimination.
•Debt Consolidation programs are legal and ethical processes.
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