Debt consolidation is basically trying to pay off other loans by taking one loan. The idea is to take this loan at a lower rate or at a fix rate or simply to avail of the advantage of servicing one loan.In debt consolidation one can move from numerous unsecured loans to one secured loan, more often against an asset like a property that serves as the collateral. This collateral is generally the house against which the mortgage is secured. This collateralization helps in getting a lower interest. The collateral allows the owner of the house, for a foreclosure to pay the loan back. Since the risk of the lender is also reduced, the interest rate is generally on the lower side.A consumer could be exposed to a poor credit rating for missing out or paying late against a credit agreement. It permits the credit rating agencies to register adverse credit ratings, which may lead to difficulty in borrowing and higher repayments. Fewer banks will show interest to lend, thereby pushing the consumer to look for debt consolidation by mortgaging a property.There are times when these debt consolidation companies look to discount the total amount of loan, more so when they find that the individual...more
Debt consolidation actually helps you to rectify your previous mistakes committed under a lot of stress and anxiety. With debt consolidation you can pay off your debts faster and save money at the same time for your future use. It is quite surprising, but the rate of interest for such debt consolidation loans is relatively low and allows you to pay...more
Debt consolidation is the act of combination multiple and various loans into one loan. In effect, once you consolidate your debt, multiple loans become just one loan payable at only one rate of interest, one coherent due date, one set of payment terms and conditions so the loan becomes having little impact to record, monitor and, ultimately,...more
If debt is consuming your life and paying the bills each month is like pushing a rock uphill one solution may be a credit counseling service specializing in the consolidation of debt. These type of companies can offer advice to help you in establishing a budget, giving tips and instruction on using credit wisely, show you a plan to track your bills and manage money more efficiently. Face it most of us went through school without any financial education.These consumer money specialist who are trained along with certified can review your financial condition, if appropriate they can help arrange a plan for repayment to your creditors that will help get back on track financially.After reviewing several companies and make a selection be prepared to lay it all out on the table. You cannot get healthy financially unless you come clean! You'll need to provide your financials, everything from income, debts and expenses. This can seem painful as you get a true picture of where you sit in the world of money and debt, but this is a great opportunity to learn about money.Your credit counselor takes all the information you provide, crunches the numbers, evaluates the information then sits down...more
We all carry a lot of debt around with us if we live in the western world, and sometimes the load becomes almost unbearable, but there are ways in which you can limit your debt burden without paying through the nose to do so. In fact, anyone who...more
Debt is a four-letter word. In recent times it could be found at the top of the list of four-letter words for most people. It is something that affects people worldwide and knows no colour or boundaries. It is one of the least discriminating...more
While it has been said that education is a privilege and not a luxury, the truth is that a college education nowadays costs thousands of dollars. Fortunately, student loans have been made readily available and fairly easy to secure. After you...more
In today's cash-strapped world, an increasing number of credit card companies have begun to offer even more enticing credit card deals that lure more people into using their credit cards and unwittingly pile up their debts in no time. Anything from...more
For the longest time, student loans (and student loan debt consolidation services) have provided valuable assistance to students and parents whose financial means are not enough to pay for college tuition and other miscellaneous expenses. Through the...more
For those who are struggling everyday just to make minimum payments on their car loans, credit card debts or home mortgages, the concept of financial freedom may seem like an abstract one. Thus, they no longer entertain thoughts of of re-gaining...more