A mortgage debt consolidation loan may be a solution to your high interest debts. Credit Card debt is most likely what borrowers will choose to consolidate first since interest rates and monthly payments are so high. By performing a cash-out refinance of a first or second mortgage you can consolidate your non-mortgage debt, mortgage debt, or both. Mortgage debt includes first mortgages and second mortgages such as a home equity line of credit or home equity loans. Non-mortgage debt would be credit cards, medical bills, student loans, auto loans, other consolidation loans, and personal loans. A cash-out refinance is a typical mortgage refinance method that can reduce your monthly payments, change your rate from variable to fixed, or change the term of your loan.
You have at least four popular techniques to consider when creating a mortgage debt consolidation loan. You can consolidate non-mortgage debt in a first mortgage. You may consolidate a second mortgage into a first. Another option is to consolidate non-mortgage debt and a second mortgage into your first. And finally you may wish to consolidate non-mortgage debt in a second mortgage.
Defaulting on your mortgages can lead to foreclosure and losing your home. A mortgage debt consolidation loan is not without its pitfalls. A borrower needs to be aware of all of their options when dealing with debt.
Consolidate Your Credit Card Debt
One popular debt to consolidate with a mortgage debt consolidation loan are credit cards. Over the past few years many people took advantage of easy access to credit cards with low introductory APRs or no interest balance transfers. After the introductory period the interest rates often jump into double digits. After running up a high outstanding balance the higher interest rates make credit card debt hard to carry.
Important Terminology
A cash-out refinance can reduce your monthly payments, change your rate from variable to fixed, or change the term of your loan. Typically with a cash-out refinance mortgage debt consolidation loan you refinance your existing mortgage with a larger loan using the equity in your home and keep the cash difference. This cash can then be used to payoff non mortgage debt such as credit cards, medical bills, student loans, auto loans, other consolidation loans, and personal loans. Now you will only need to repay one loan and to a single lender.
A second mortgage is a loan taken after your first mortgage. Types of second mortgages include a Home Equity Line of Credit (HELOC) and a home equity loan. A HELOC is attractive because it is a line of credit that you can tap into repeatedly. For some a home equity loan is a better choice because it usually offers a fixed interest rate.
Four Types of Loans
The simplest way for a homeowner to consolidate their debts is to consolidate all non-mortgage debt in a first mortgage. You perform a cash-out refinance and consolidate all of your non-mortgage debt. You leave your second mortgage as is if you have one or better yet you won't need to take one out.
If you have an existing second mortgage you can consolidate it into your first. In this case you do a cash-out refinance on your first mortgage to consolidate your second. This is not desirable if you want to consolidate a substantial amount of non-mortgage debt. It is worth mentioning to show you a more complete picture of your options.
A great way to go is to consolidate non-mortgage debt and second mortgage in your first. This way you can consolidate both your second mortgage and all of your existing non-mortgage debt through a cash-out refinancing of your first. This is most desirable because you can have a single payment and a single lender for all of your debt.
One additional method is to consolidate all of your non-mortgage debt with a second mortgage. A second mortgage is a loan taken after your first mortgage. Types of second mortgages include a Home Equity Line of Credit (HELOC) or a home equity loan with a fixed interest rate. This allows you to consolidate your existing non-mortgage debt by doing a cash-out refinance of your second mortgage only, leaving your first mortgage alone.
Loan Considerations
Typically credit card debt, student loans, medical bills, and others are considered unsecured debt. First and second mortgages are secured debt. Secured debt often grants a creditor rights to specified property. Unsecured debt is the opposite of secured debt and is is not connected to any specific piece of property. It is very tempting to consolidate unsecured debt such as credit cards using a mortgage debt consolidation loan, but the result is that the debt is now secured against your home. Your monthly payments may be lower, but the due to the longer term of the loan the total amount paid could be significantly higher.
For some people debt settlements or even debt counseling is a better solution to their debt problems. A mortgage debt consolidation loan may only treat the symptoms and not ever cure the disease of financial problems. Rather than convert your unsecured debt to secured it might be better to work out a settlement or a payment plan with your creditors. Often a debt counselor or advisor who is an expert in what your options are can be your best solution.
Just One Option
You have many options for a mortgage debt consolidation loan. Educating yourself is well worth it when considering your next steps. Review the four techniques mentioned above and decide if any are best for you. Also consider contacting your non-mortgage debt creditors directly to work out a payment plan or a debt settlement if necessary. Sometimes before committing to any action you should meet with a debt advisor to learn more about credit counseling.
For more articles on Mortgage Debt Consolidation Loans [http://consolidationdebtnews.info/refinance-mortgage/refinance-mortgage-debt-consolidation.htm] go to: Debt Consolidation blog [http://consolidationdebtnews.info/refinance-mortgage/refinance-mortgage-debt-consolidation.htm]
Will Davis writes for Consolidation Debt News [http://consolidationdebtnews.info/refinance-mortgage/refinance-mortgage-debt-consolidation.htm] a blog that provides debt consolidation solutions such as Mortgage Debt Consolidation Loans and other mortgage refinancing methods to take charge of your debt.
By Will Davis
Wednesday, August 15, 2018
Monday, August 6, 2018
Free Debt Consolidation Advice - Debt Help For You
Getting free debt consolidation advice can save you from falling into bankruptcy. Not only that, free debt consolidation advice can also enable you to work toward making your credit rating healthy again. If you are a debtor, you might need some sort of expertise to negotiate with your creditors. Debt consolidation help includes negotiation on your behalf as well as effective financial planning.
Searching For Debt Consolidation
Get free debt consolidation advice to tide over your debt crisis. There are many options for you if you are looking for free debt consolidation advice. But if you need help other than advice, you may need to pay some fee. However, there are many organizations that also offer debtors free debt consolidation advice.
Start by asking around at your church, local youth and voluntary organizations. Many of these institutions have special cells that offer free debt consolidation advice. These cells will help you locate the best free debt consolidation service.
Another option is looking online for free debt consolidation advice. The Internet has a lot of information about debt consolidation services. You need to simply log in and search for companies offering free debt consolidation advice in your area. A lot of advice may be free, and if you need services you have to pay for, you can look for a free non-profit debt consolidation quote.
If you have taken loan from a lending agency, or are reeling under the burden of credit card debts, chances are you can get free debt consolidation advice from these companies themselves. Your creditors are also eager to help you repay your debts to them, so you can look for loan consolidation help from designated departments.
Government organizations also run cells that offer free debt consolidation advice. Look up information at finance and business departments to find out more about places to find free debt consolidation advice.
How Advice Can Help You
If you are looking for free debt consolidation advice, chances are you may not be able to find someone to negotiate with the creditors for you. However, don't let that deter you. With the expert advice provided by these organizations, you will find the confidence to negotiate with your debtors on your own.
Apart from sorting out your immediate problem, free debt consolidation advice will also help you plan your lifestyle and expenditure in a way that you can avoid future debt problems. But remember, you may need to cut unnecessary expenditure along with all this.
You will also be taught how to repay your consolidate loan as early as possible so that your credit record is not damaged further. After a few months, you can start taking small steps towards repairing your credit.
Free debt consolidation advice can help you overcome debt; get your life back on track and repair poor credit.
For people looking for free debt consolidation advice [http://www.free-debt-consolidation-help.com/free_debt_consolidation_advice.html], there are options aplenty including government organizations, non-profit debt help groups and special cells set up by lenders. You can get free nonprofit debt consolidation quote [http://www.best-debt-consolidation-program.com/debt_consolidation_quotes.html] online from different non-profit debt consolidation companies and compare different quotes to select the best debt consolidation offer. Visit Free Debt Consolidation Help [http://www.free-debt-consolidation-help.com] for more details regarding free debt help options including free debt consolidation counseling and bad credit debt consolidation.
By Apurva Shree
Searching For Debt Consolidation
Get free debt consolidation advice to tide over your debt crisis. There are many options for you if you are looking for free debt consolidation advice. But if you need help other than advice, you may need to pay some fee. However, there are many organizations that also offer debtors free debt consolidation advice.
Start by asking around at your church, local youth and voluntary organizations. Many of these institutions have special cells that offer free debt consolidation advice. These cells will help you locate the best free debt consolidation service.
Another option is looking online for free debt consolidation advice. The Internet has a lot of information about debt consolidation services. You need to simply log in and search for companies offering free debt consolidation advice in your area. A lot of advice may be free, and if you need services you have to pay for, you can look for a free non-profit debt consolidation quote.
If you have taken loan from a lending agency, or are reeling under the burden of credit card debts, chances are you can get free debt consolidation advice from these companies themselves. Your creditors are also eager to help you repay your debts to them, so you can look for loan consolidation help from designated departments.
Government organizations also run cells that offer free debt consolidation advice. Look up information at finance and business departments to find out more about places to find free debt consolidation advice.
How Advice Can Help You
If you are looking for free debt consolidation advice, chances are you may not be able to find someone to negotiate with the creditors for you. However, don't let that deter you. With the expert advice provided by these organizations, you will find the confidence to negotiate with your debtors on your own.
Apart from sorting out your immediate problem, free debt consolidation advice will also help you plan your lifestyle and expenditure in a way that you can avoid future debt problems. But remember, you may need to cut unnecessary expenditure along with all this.
You will also be taught how to repay your consolidate loan as early as possible so that your credit record is not damaged further. After a few months, you can start taking small steps towards repairing your credit.
Free debt consolidation advice can help you overcome debt; get your life back on track and repair poor credit.
For people looking for free debt consolidation advice [http://www.free-debt-consolidation-help.com/free_debt_consolidation_advice.html], there are options aplenty including government organizations, non-profit debt help groups and special cells set up by lenders. You can get free nonprofit debt consolidation quote [http://www.best-debt-consolidation-program.com/debt_consolidation_quotes.html] online from different non-profit debt consolidation companies and compare different quotes to select the best debt consolidation offer. Visit Free Debt Consolidation Help [http://www.free-debt-consolidation-help.com] for more details regarding free debt help options including free debt consolidation counseling and bad credit debt consolidation.
By Apurva Shree
Sunday, August 5, 2018
Get Debt Consolidation Quote And Get The Best Value For Your Money
Test the waters before you jump, getting a quote can help stay away from frauds. Getting a debt consolidation quote is like testing the waters before plunging in for a swim. It is prudent that before taking any decision related to money; be it taking a loan or making an investment, one should always make sure that the factors governing that decision are in one's favor. For those who have made up their mind on taking a debt consolidation plan, it is of utmost importance that they get a debt consolidation quote from the company which they are going to engage for the service.
Who Can Get A Debt Consolidation Quote
Debt consolidation quote is given to a person who wishes to take the services of a debt consolidation company. Such a company advises you and helps you take the best debt consolidation program based on your requirements and your repayment capabilities. Imagine a situation wherein you are already in a financial mess due to unpaid bills and delayed loan repayments and on top of that you end up choosing a debt consolidation services company that is not good enough too. That is like asking for double trouble.
The role of debt consolidation services companies in enabling you to take a plan best suited to your financial crisis is highly crucial. Therefore one must take a debt consolidation quote from a number of such companies and then choose the right debt consolidation services company. Debt consolidation quote enables you to know exactly how the company plans to work out your repayment module. Usually, most reputed debt consolidation services companies offer quotes for free when you approach them for debt consolidation counseling.
If any company is not offering free debt consolidation quote initially then you can easily rule out engaging their services. You can go for debt consolidation counseling through companies, which have websites on the World Wide Web. Once you locate such debt consolidation service companies you can ask for a quote online. Such a move helps you guard against frauds.
There are numerous instances where fraudsters pose themselves as debt consolidation services companies and ask for an upfront payment. Such fraudsters often either offer terrible services further deepening your financial crisis or they simply vanish after getting money from you.
Taking a free debt consolidation quote is one way of making sure that you are giving your trust in the right hands. Genuine debt consolidation companies will do their due diligence and analyze your financial situation before giving you a quote to help you decide if you wish to use their services. Free debt consolidation quote also enables you to compare the services being offered by different companies. The debt consolidation service providers often differ in their charges. You can then choose the one which offers you the best value for your money.
Debt consolidation quote [http://www.best-debt-consolidation-program.com/debt_consolidation_quotes.html] can help you compare various debt consolidation service companies before making a crucial decision on opting for a credit consolidation plan. Based on debt consolidation quotes from different debt consolidation companies [http://www.best-debt-consolidation-program.com/debt_consolidation_company.html], you can select the best debt consolidation program. A free debt consolidation quote also helps you to evaluate the feasibility of taking a debt consolidation loan. Visit Best Debt Consolidation Program [http://www.best-debt-consolidation-program.com] for more information on debt relief and to get free debt consolidation quotes online.
By Ashwell M
Who Can Get A Debt Consolidation Quote
Debt consolidation quote is given to a person who wishes to take the services of a debt consolidation company. Such a company advises you and helps you take the best debt consolidation program based on your requirements and your repayment capabilities. Imagine a situation wherein you are already in a financial mess due to unpaid bills and delayed loan repayments and on top of that you end up choosing a debt consolidation services company that is not good enough too. That is like asking for double trouble.
The role of debt consolidation services companies in enabling you to take a plan best suited to your financial crisis is highly crucial. Therefore one must take a debt consolidation quote from a number of such companies and then choose the right debt consolidation services company. Debt consolidation quote enables you to know exactly how the company plans to work out your repayment module. Usually, most reputed debt consolidation services companies offer quotes for free when you approach them for debt consolidation counseling.
If any company is not offering free debt consolidation quote initially then you can easily rule out engaging their services. You can go for debt consolidation counseling through companies, which have websites on the World Wide Web. Once you locate such debt consolidation service companies you can ask for a quote online. Such a move helps you guard against frauds.
There are numerous instances where fraudsters pose themselves as debt consolidation services companies and ask for an upfront payment. Such fraudsters often either offer terrible services further deepening your financial crisis or they simply vanish after getting money from you.
Taking a free debt consolidation quote is one way of making sure that you are giving your trust in the right hands. Genuine debt consolidation companies will do their due diligence and analyze your financial situation before giving you a quote to help you decide if you wish to use their services. Free debt consolidation quote also enables you to compare the services being offered by different companies. The debt consolidation service providers often differ in their charges. You can then choose the one which offers you the best value for your money.
Debt consolidation quote [http://www.best-debt-consolidation-program.com/debt_consolidation_quotes.html] can help you compare various debt consolidation service companies before making a crucial decision on opting for a credit consolidation plan. Based on debt consolidation quotes from different debt consolidation companies [http://www.best-debt-consolidation-program.com/debt_consolidation_company.html], you can select the best debt consolidation program. A free debt consolidation quote also helps you to evaluate the feasibility of taking a debt consolidation loan. Visit Best Debt Consolidation Program [http://www.best-debt-consolidation-program.com] for more information on debt relief and to get free debt consolidation quotes online.
By Ashwell M
Saturday, August 4, 2018
5 Hints For Finding The Best Debt Consolidation Help
Debt consolidation is one of the most common debt relief solutions for many debtors. By go through a debt consolidation process, all your unsecured debts will be merged into one for better debt management. In some cases, the debt consolidation company may be able to help you to lower your minimum monthly payment and interest rates, which can help you to manage your money better.
If you have decided to go for debt consolidation to resolve your debt issue, then, finding a good debt consolidation company that can really help you in handling your debt problem is crucial because getting help from an unethical debt consolidation company can make your financial situation goes worse. Here are 5 hints for finding the best debt consolidation help.
Hint 1: Search As Much Information Available Online & Offline
The best way to find a reputable debt consolidation company is through a recommendation from some one you know who had used the services of a debt consolidation company and have a good comment on it. If you don't know some one who knows a good debt consolidation company, then, look through yellow pages or you can easy find many of debt consolidation services from internet. Short listed the companies that near by you and ask them to send you their debt consolidation service information package. You don't need to pay a penny for requesting the company's services details; hence, utilize these resources to ask as much information as you can so that you can make a comparison about their services. Then, compile a list of your choices.
Hint 2: Detect Scam's Warning Signs
While searching for debt consolidation companies, put yourself in a high alert for any scammer's signs. While extremely high fee is definitely a red flag, extremely low fee may have high hidden cost; hence, you need to really understand how the company will charge you on their service, watch out for hidden cost. Don't believe if a debt consolidation company claims too much of guarantees and their debt consolidation package look too good to be believed. Remember, your debt issue cannot be go away overnight or in a short period of time, if any debt consolidation company tells you that they can get you out of debt at unbelievable short period of time, they lie.
Hint 3: Check for Any Complaint Filed Against the Company
A debt consolidation company may be legitimate but their services may be bad and can't help much in resolving your debt issue. In order to avoid yourself from getting help for a helpless debt consolidation company, spend some time to look for complaints filed against the company; call the Better Business Bureau in your area to find out if there have been complaints against the companies in your list.
Hint 4: Don't Make An Instant Decision
You should interview all the debt consolidation companies short listed which you think they can best help you in resolving your debt issue. Of course, when you talk to them, most of their proposal and recommended solutions will look good and impress you. Although, you are in hurry to get your debt issue resolve, don't make up your final decision at the spot and enroll into any of debt consolidation plan. Tell them that you need some time to consider. Take your time and at your comfort home, compare all services from the debt consolidation companies you have interviewed earlier and select the best debt consolidation company that can provides you the best service at a reasonable price.
Hint 5: Fine Read Any Contract Before Sign
When you decide to enroll into a debt consolidation plan, you definitely will be asked to sign an agreement or contract about the proposed debt solution plan. Remember to read the contract in details before you put your signature on the dotted line. Don't sign the contract if you are doubts or have questions on any part of it. Clear your doubts and get your questions answered first.
Summary
If you have decided to get professional help to consolidation your debt, then it is crucial to choose a reputable debt consolidation company with a debt consolidation plan that best suite your financial need. Hopefully, the 5 hints as mentioned will be able to guide you to find the best debt consolidation help.
Cornie Herring is the owner of Debt Consolidation Guide [http://www.debt-consolidation-1stop.info/]. Debt Consolidation Guide is an informational debt and loan website with informative topics, tips and guide on solving your debt issues. Visit Cornie’s website to see more free information on Debt Consolidation & Credit Counseling [http://www.debt-consolidation-1stop.info/credit101_CreditCounseling.php] and Debt Management [http://www.debt-consolidation-1stop.info/Dealing-With-Financial-Stress.php]
By Cornie Herring
If you have decided to go for debt consolidation to resolve your debt issue, then, finding a good debt consolidation company that can really help you in handling your debt problem is crucial because getting help from an unethical debt consolidation company can make your financial situation goes worse. Here are 5 hints for finding the best debt consolidation help.
Hint 1: Search As Much Information Available Online & Offline
The best way to find a reputable debt consolidation company is through a recommendation from some one you know who had used the services of a debt consolidation company and have a good comment on it. If you don't know some one who knows a good debt consolidation company, then, look through yellow pages or you can easy find many of debt consolidation services from internet. Short listed the companies that near by you and ask them to send you their debt consolidation service information package. You don't need to pay a penny for requesting the company's services details; hence, utilize these resources to ask as much information as you can so that you can make a comparison about their services. Then, compile a list of your choices.
Hint 2: Detect Scam's Warning Signs
While searching for debt consolidation companies, put yourself in a high alert for any scammer's signs. While extremely high fee is definitely a red flag, extremely low fee may have high hidden cost; hence, you need to really understand how the company will charge you on their service, watch out for hidden cost. Don't believe if a debt consolidation company claims too much of guarantees and their debt consolidation package look too good to be believed. Remember, your debt issue cannot be go away overnight or in a short period of time, if any debt consolidation company tells you that they can get you out of debt at unbelievable short period of time, they lie.
Hint 3: Check for Any Complaint Filed Against the Company
A debt consolidation company may be legitimate but their services may be bad and can't help much in resolving your debt issue. In order to avoid yourself from getting help for a helpless debt consolidation company, spend some time to look for complaints filed against the company; call the Better Business Bureau in your area to find out if there have been complaints against the companies in your list.
Hint 4: Don't Make An Instant Decision
You should interview all the debt consolidation companies short listed which you think they can best help you in resolving your debt issue. Of course, when you talk to them, most of their proposal and recommended solutions will look good and impress you. Although, you are in hurry to get your debt issue resolve, don't make up your final decision at the spot and enroll into any of debt consolidation plan. Tell them that you need some time to consider. Take your time and at your comfort home, compare all services from the debt consolidation companies you have interviewed earlier and select the best debt consolidation company that can provides you the best service at a reasonable price.
Hint 5: Fine Read Any Contract Before Sign
When you decide to enroll into a debt consolidation plan, you definitely will be asked to sign an agreement or contract about the proposed debt solution plan. Remember to read the contract in details before you put your signature on the dotted line. Don't sign the contract if you are doubts or have questions on any part of it. Clear your doubts and get your questions answered first.
Summary
If you have decided to get professional help to consolidation your debt, then it is crucial to choose a reputable debt consolidation company with a debt consolidation plan that best suite your financial need. Hopefully, the 5 hints as mentioned will be able to guide you to find the best debt consolidation help.
Cornie Herring is the owner of Debt Consolidation Guide [http://www.debt-consolidation-1stop.info/]. Debt Consolidation Guide is an informational debt and loan website with informative topics, tips and guide on solving your debt issues. Visit Cornie’s website to see more free information on Debt Consolidation & Credit Counseling [http://www.debt-consolidation-1stop.info/credit101_CreditCounseling.php] and Debt Management [http://www.debt-consolidation-1stop.info/Dealing-With-Financial-Stress.php]
By Cornie Herring
Friday, August 3, 2018
Credit Card Debt Consolidation Advantages and Disadvantages
Credit card debt consolidation can be handled in a couple different ways. Most individuals will need help to consolidate your credit card debt. Finding a loan for debt consolidation can be a task, but with the right help it can be easy.
Consolidation requires finding a reputable debt consolidation company that will take care of your needs and find you the best interest rate possible. Start by getting a free consultation from a reputable consolidation company.
When you consolidate credit card debt the goal is to have one easy payment that is less than all your debt combined. The problem is when most individuals use consolidation they find out they can borrow more money at a lower interest rate and keep their payment the same.
If your goal is to consolidate your debt and have a lower payment then you need to avoid this one pitfall or it defeats the purpose. Borrowing more money at a lower interest rate and keeping your payment the same will not put you one step closer to paying off your credit card debt. Remember the goal with debt consolidation is to lower your monthly payment, so you can get out of debt.
There's plenty of debt consolidation companies that will help find consolidation loans for people with bad credit. Just remember your goal is to consolidate your debt and reduce your monthly credit card debt payments. If the interest rate is higher and your monthly payment is more than it was before, your no farther ahead. Search around and find a debt consolidation loan that fits your needs.
There's plenty of reputable companies that offer consolidation help and are more than willing to supply you with all your credit card debt consolidation answers.
Credit card debt consolidation can be tricky for some people and they may want to get advice from a debt consolidation attorney. Legal debt consolidation is no different than normal consolidation, you don't need to hire an attorney or lawyer to consolidate your credit card debt. The only reason you should need a debt consolidation lawyer is if you are considering or have filed bankruptcy.
Consolidation is a good alternative to avoiding bankruptcy, if you use consolidation the right way. Bankruptcy should be the last thing you attempt, all other debt options should be tried first. Most everyone who has fallen behind on their debt will consider bankruptcy.
Bankruptcy consolidation is not the answer, the laws on bankruptcy have changed and most individuals will have to enter into some type of settlement arrangement with their debt companies. Protecting your credit is the best option, it's easier to rebuild your credit rating with bad marks or late payments than it is with a bankruptcy on your record.
Some companies will try to use credit card consolidation as a technique for debt settlement. This only works if your payments after consolidation is low enough to help you out financially and you can use the extra money to pay off your consolidation loan.
Credit card consolidation may not be the right solution. If your behind on your debt and your at the point where consolidation isn't going to be enough to help you get out of debt, you might want to consider paying your debt off. Debt settlement is usually the option that most individuals decide to use.
I realize that most people are a little skeptical when it comes to do it yourself debt settlement. The truth is, you can do it yourself once you understand how the credit card debt and other debt collection processes work.
To Learn more, take advantage of our free Debt Consultation
Free Debt Consultation : http://www.freemedebt.com
By Billy Glander
Consolidation requires finding a reputable debt consolidation company that will take care of your needs and find you the best interest rate possible. Start by getting a free consultation from a reputable consolidation company.
When you consolidate credit card debt the goal is to have one easy payment that is less than all your debt combined. The problem is when most individuals use consolidation they find out they can borrow more money at a lower interest rate and keep their payment the same.
If your goal is to consolidate your debt and have a lower payment then you need to avoid this one pitfall or it defeats the purpose. Borrowing more money at a lower interest rate and keeping your payment the same will not put you one step closer to paying off your credit card debt. Remember the goal with debt consolidation is to lower your monthly payment, so you can get out of debt.
There's plenty of debt consolidation companies that will help find consolidation loans for people with bad credit. Just remember your goal is to consolidate your debt and reduce your monthly credit card debt payments. If the interest rate is higher and your monthly payment is more than it was before, your no farther ahead. Search around and find a debt consolidation loan that fits your needs.
There's plenty of reputable companies that offer consolidation help and are more than willing to supply you with all your credit card debt consolidation answers.
Credit card debt consolidation can be tricky for some people and they may want to get advice from a debt consolidation attorney. Legal debt consolidation is no different than normal consolidation, you don't need to hire an attorney or lawyer to consolidate your credit card debt. The only reason you should need a debt consolidation lawyer is if you are considering or have filed bankruptcy.
Consolidation is a good alternative to avoiding bankruptcy, if you use consolidation the right way. Bankruptcy should be the last thing you attempt, all other debt options should be tried first. Most everyone who has fallen behind on their debt will consider bankruptcy.
Bankruptcy consolidation is not the answer, the laws on bankruptcy have changed and most individuals will have to enter into some type of settlement arrangement with their debt companies. Protecting your credit is the best option, it's easier to rebuild your credit rating with bad marks or late payments than it is with a bankruptcy on your record.
Some companies will try to use credit card consolidation as a technique for debt settlement. This only works if your payments after consolidation is low enough to help you out financially and you can use the extra money to pay off your consolidation loan.
Credit card consolidation may not be the right solution. If your behind on your debt and your at the point where consolidation isn't going to be enough to help you get out of debt, you might want to consider paying your debt off. Debt settlement is usually the option that most individuals decide to use.
I realize that most people are a little skeptical when it comes to do it yourself debt settlement. The truth is, you can do it yourself once you understand how the credit card debt and other debt collection processes work.
To Learn more, take advantage of our free Debt Consultation
Free Debt Consultation : http://www.freemedebt.com
By Billy Glander
Thursday, August 2, 2018
Consolidate My Debt - The Pros and Cons of Consolidating Debt
Consolidate my debt - will it solve your credit card debt problems or will it get you deeper into debt? Debt consolidation has rapidly become the most sought after solution in overcoming insurmountable debt problems. There definitely are advantages to a debt consolidation but be aware that there also are certain disadvantages brought about by consolidating one's debt. Before you decide whether a debt consolidation is the solution to your debt problems, you should first be aware of the different factors to be considered in a debt consolidation program.
1. The total amount of your outstanding balances
Most major creditors who offer consolidation will grant a debt consolidation program to those who have at least $5,000 in outstanding credit card debt. For other creditors, the minimum is $10,000. So if your total outstanding balance is less than that, might as well work on solving the problem yourself. $2,000 worth of debt can easily be eliminated as long as you commit yourself to paying more than the minimum-required payment each month.
The reason why creditors will only work with customers who have more than $10,000 in debt in a debt consolidation program is because their administrative fees for this program is charged monthly. It will certainly take longer to pay off $10,000 compared to $2000. The longer the time the loan gets paid off, the more money the credit company makes. Simply put, consolidation companies will not profit from consolidated loans that amounts to $5000 or less.
2. The interest rates and other service charges of the consolidated debt
If you are looking for a company that will consolidate your debts, make extra certain that they will be offering you an interest rate, which is considerably lower than any of your existing credit card accounts. Also, check the fine print and examine if there are any service fees and charges that are attached to it. Calculate exactly how much your payments will be monthly and compare it to the amount you are currently paying towards your debts. If the calculated figure is equal or more than what you presently make, that program is definitely not worth the hassle
3. Make sure that that your consolidation company will come up with a plan that will strategically help you out in paying your debts off
In a debt consolidation program, the company you consolidate your debts with should be able to negotiate with your creditors to reduce the interest rate of your account. Also, as the term "consolidation" implies, all your debts will be combined into a single debt leaving you with only one monthly debt payment to make. You will be paying your consolidation company and they will in turn disperse the payments to your other creditors.
The problem sometimes is some creditors do not change the date your amount is due according to the date due of your consolidated debt. Example: the due date to one of your past accounts is every 3rd of the month while your due date to the consolidated loan is on the 5th of the month. In this case, since you have not yet paid the single monthly payment to your consolidated loan, you may be charge for late fees for the account that was due on the 3rd. So make sure that all of the dates due on your previous accounts coincides with the due date of your consolidated loan before even start making the single payments.
4. A debt consolidation adversely affects your credit score
The reason behind this is because with a debt consolidation, the credit card accounts that are enrolled in this program will be closed, thus lowering your credit score. Also, the other credit accounts that are subject of the debt consolidation will inevitably be frozen. It would be advisable, therefore, to carefully choose which credit card accounts will be consolidated. It would be wise to keep a credit card for emergency purposes. Of course, you should use your remaining credit card as responsibly as possibly. Use it only when an emergency arises and for nothing else. The best way to maximize the effect of a debt consolidation program is to prioritize consolidating all credit card accounts with the highest interest rates and the greatest account balances. This way, you get to save on interest charges more and you get out of debt faster.
Debt consolidation can be advantageous in so many ways. you get a considerably lower interest rate to the total debt amount, you get to manage your debt better since you would be dealing with a single payment a month, your creditors would no longer be bothering you to pay your dues, and you may find yourself debt free sooner than you can imagine. There are, however, major factors to consider before deciding to enroll in such a program. Do your homework and choose a debt consolidation company that will provide you with an excellent customer service and most importantly, one that will give you the best deal.
To learn more about debt consolidation and other debt solutions, please visit this link: http://debtconsolidationpro.info/
By: Andre Navarrete
1. The total amount of your outstanding balances
Most major creditors who offer consolidation will grant a debt consolidation program to those who have at least $5,000 in outstanding credit card debt. For other creditors, the minimum is $10,000. So if your total outstanding balance is less than that, might as well work on solving the problem yourself. $2,000 worth of debt can easily be eliminated as long as you commit yourself to paying more than the minimum-required payment each month.
The reason why creditors will only work with customers who have more than $10,000 in debt in a debt consolidation program is because their administrative fees for this program is charged monthly. It will certainly take longer to pay off $10,000 compared to $2000. The longer the time the loan gets paid off, the more money the credit company makes. Simply put, consolidation companies will not profit from consolidated loans that amounts to $5000 or less.
2. The interest rates and other service charges of the consolidated debt
If you are looking for a company that will consolidate your debts, make extra certain that they will be offering you an interest rate, which is considerably lower than any of your existing credit card accounts. Also, check the fine print and examine if there are any service fees and charges that are attached to it. Calculate exactly how much your payments will be monthly and compare it to the amount you are currently paying towards your debts. If the calculated figure is equal or more than what you presently make, that program is definitely not worth the hassle
3. Make sure that that your consolidation company will come up with a plan that will strategically help you out in paying your debts off
In a debt consolidation program, the company you consolidate your debts with should be able to negotiate with your creditors to reduce the interest rate of your account. Also, as the term "consolidation" implies, all your debts will be combined into a single debt leaving you with only one monthly debt payment to make. You will be paying your consolidation company and they will in turn disperse the payments to your other creditors.
The problem sometimes is some creditors do not change the date your amount is due according to the date due of your consolidated debt. Example: the due date to one of your past accounts is every 3rd of the month while your due date to the consolidated loan is on the 5th of the month. In this case, since you have not yet paid the single monthly payment to your consolidated loan, you may be charge for late fees for the account that was due on the 3rd. So make sure that all of the dates due on your previous accounts coincides with the due date of your consolidated loan before even start making the single payments.
4. A debt consolidation adversely affects your credit score
The reason behind this is because with a debt consolidation, the credit card accounts that are enrolled in this program will be closed, thus lowering your credit score. Also, the other credit accounts that are subject of the debt consolidation will inevitably be frozen. It would be advisable, therefore, to carefully choose which credit card accounts will be consolidated. It would be wise to keep a credit card for emergency purposes. Of course, you should use your remaining credit card as responsibly as possibly. Use it only when an emergency arises and for nothing else. The best way to maximize the effect of a debt consolidation program is to prioritize consolidating all credit card accounts with the highest interest rates and the greatest account balances. This way, you get to save on interest charges more and you get out of debt faster.
Debt consolidation can be advantageous in so many ways. you get a considerably lower interest rate to the total debt amount, you get to manage your debt better since you would be dealing with a single payment a month, your creditors would no longer be bothering you to pay your dues, and you may find yourself debt free sooner than you can imagine. There are, however, major factors to consider before deciding to enroll in such a program. Do your homework and choose a debt consolidation company that will provide you with an excellent customer service and most importantly, one that will give you the best deal.
To learn more about debt consolidation and other debt solutions, please visit this link: http://debtconsolidationpro.info/
By: Andre Navarrete
Wednesday, August 1, 2018
The Tricks of Debt Consolidation
With debt becoming an ever greater problem for American families, there are still many households either avoiding the situation entirely or falsely believing that things will turn themselves around. Purposefully ignoring bill collectors or pretending that something will just suddenly come up to remove the consumer debt that has been accumulating on their ledgers for an extended amount of time could only be deemed foolish, but we do understand the temptations that lead people to tackle the credit card burdens that have amassed through what, after all, has been their own efforts (or lack of such). Nobody wants to surrender control of their budget and short term financial destiny to outside assistance from strangers, but, at the same point, you have to take a serious look at your obligations not only as they stand now but over the long haul. This is where debt consolidation may be a genuine solution for you and your household. At the least, you owe it to yourself to give debt consolidation a studied appraisal to decide if the programs could have some benefit.
Think of it this way. How do you want your life to look over the next two, five, ten, even twenty years? Do you still want to be paying off today's debts decades from now? Of course not. This is absolutely the worst possible scenario - more destructive in the long run even than Chapter 7 bankruptcy protection. The longer you postpone a debt, the more you are giving up in money lost to compound interest rather than paying off the principal of your debt. When you take out short term consolidation loans, on the other hand, most of the money you spend upon the program is going toward the actual debt instead of the creditors' pockets. While the debt consolidation approach may require a temporarily harsh sacrifice, shorter term loans will help to get you out of debt trouble with much less expense over the course of loan when compared to simply maintaining the minimum payments. There's just no way for ordinary consumers to manage truly large debt burdens spread among a number of different credit cards or accounts without some form of debt consolidation.
Again, as we've said, it is more than reasonable for borrowers to insist that they can take care of their own debt by themselves without resorting to consolidation techniques. Indeed, one of the reasons credit card companies have been so successful in creating the modern society of revolving debt has been the sheer powers of abstraction needed to fully understand precisely how difficult it would ever be to better your position without greatly changing the framework of your financial obligations. Nevertheless, the magnitude of debt management within a better existence should not be diminished. Instead of putting food on your creditors' tables, you'll lead yourself into a position where you can improve your own chances for success and use all that you earn to help your own family struggle through our uncertain economy with some degree of security. By taking out the right sort of debt consolidation loan, you are giving yourself the opportunity to renegotiate the terms of your loan payment in a way that shall prove far more beneficial for all future endeavors. When working with the right companies and agreeing to loans that have the right terms, debt consolidation will allow you to think not just about next month, but also to realistically plan out the rest of your life.
Of course, things are a bit more complicated than simply undertaking an examination of the debt consolidation alternatives. It's highly important when looking at all of the varied consolidation loan options to find out what approaches are likely to be the most beneficial for you and your family, and this can be a trek that takes months to be fully realized. For one thing, there are just so many variables to be studied at before even the most basic fundamentals are addressed. Personal loan consolidation programs are heavily dependent on credit history, for example, and your ultimate interest rates will to a large degree be dependent upon the FICO scores offered by the three main credit bureaus. Employment history is also a good determination of what sort of debt consolidation program would allow admittance. For debt settlement negotiation, to take just one example, the specific lenders and nature of your unsecured debt - above and beyond the credit and income qualifications - could well make or break debt settlement as a workable notion for your household. Within the boundaries of an article such as this, it's just too difficult (and, for your authors, ultimately irresponsible) to attempt to accurately predict which form of debt consolidation could be the right fit for your own family. In the following piece, we merely wish to show a few different tips and strategies about the larger consolidation approach so that those interested borrowers may have some sort of map through their own hard fought discoveries about the realities of debt consolidation.
It is certainly true that the process of searching out debt consolidation loans and learning about the various benefits and drawbacks of the consolidation process could seem daunting to consumers who have never before bothered (or, in many cases, needed) to take the time to learn much about debt management and the various forms it may take. If you are worried about your credit history and just want to make all of the bill collector calls go away, it can seem all too tempting for borrowers to simply take the first loan that's offered in order to solve short-term problems. Still, this has to be said to be one of the most common mistakes you could make. More importantly, it's a mistake that could have destructive effects far into any unwary borrower's future. The best thing to do in any of these situations is just to stop, take a deep breath, and understand that you don't have to agree to any loan consolidation program right away. You will almost certainly be able to get a better offer from other debt consolidation specialists if you take your time and investigate every last alternative. For this reason, you want to always make sure to wait until the last possible moment to commit to a debt consolidation program.
To paraphrase a truism from carpenters and tradesmen, analyze twice and sign once. As every borrower should know, the lenders' quoted prices may be quite different from what actually turns up on the eventual papers, and, if you should remain dubious (and, trust your authors, you should remain dubious) that the consolidation quotes will barely resemble what you will see once you actually apply for the loans, the only logical thing to do is to compare prices among multiple lenders. The debt consolidation professionals that you work with will argue this decision, to be sure, and they will ask, with no small amount of practiced guilt projection, that you leave everything within their hands. An experienced debt consolidation specialist will make you leave their office feeling like a discussion with one of their competitors would be somehow cheating, but this is not infidelity. A serious attempt at debt consolidation, not to exaggerate things, could make or break your household finances for up to a decade afterwards and, with egregious malfeasance on the part of the consolidation firm, perhaps even longer. The only person who really understands your own best interests is you, after all. This may sound obvious, but many borrowers considering debt consolidation somehow forget the practicalities behind the procedure, and, in order to make an enlightened choice, you need to really understand what options are on the table. By comparing offers from a number of different lenders, you can only then allow yourself an accurate picture of what options have been made available. Furthermore, only then can you make a truly informed decision about debt consolidation that will best help you and your family prepare for the future come what may.
Remember, the real perspective to look at as regards debt consolidation should always involve the long game. You should not be seeking to get ahead for just the next month. That's what credit card companies count upon. When considering consolidation programs, you should be looking to decide on the best option that will let you get ahead in life through eliminating the debts that hamstring household finance without artificially crippling any larger dreams or unfairly limiting your family's comfort. For the sake of argument (one offered hourly by telemarketers, we should add), let's say that someone offers you the chance to reduce your monthly payments by half. This would mean that, instead of paying five hundred dollars a month you would only be paying two hundred and fifty dollars, but, in order to do this, the debt consolidation company may be extending the terms of your loan from five to fifteen years. Let's even assume there shall be a significant cut in interest rates for the time being. When you calculate the actual terms of the loan, you will end up paying a good deal more money - perhaps twice as much, depending upon rate and amount - than you would have had you left things alone.
This is why it can be so difficult for those borrowers who'd never pretended to be financiers to understand just what the greater consequences of such consolidation loans may be. In the last case mentioned, you would spend far more in interest through the course of the consolidation, and, even without the costs of said consolidation added alongside, what you'd imagined to be a positive action will leave you even farther behind in debt than what you could have achieved by merely paying every dollar toward eliminating those burdens.
With a good consolidation loan boasting proper terms, you should not only be reducing those monthly payments, you would be decreasing the total amount of debt that needs to be repaid through the entirely of the loan. You work hard for the money you earn, we assume, and you do not want to throw it away simply because you feel an inexplicable loyalty to one smooth talking consolidation salesman. Read the details carefully for every document, pay attention to the fine print, comparison shop with competitors in the industry, and always make sure that you know what you're signing on for before they hand you the pen. In the end, the future is always up to you, and there is no reason to blame anyone else for your laziness or sloppy analysis if your debt consolidation should be handled poorly.
We cannot say this too many times: always know precisely what you are signing. It's hard to even estimate how many correspondents have written us complaining that they attached their names to contracts without taking the proper amount of time to understand the documents completely. In times such as these, particularly when debt collection agencies are breathing down your neck and even the minimum payments of credit cards seem depressingly our of reach, it may seem easy to just sign your name to anything that seems at first glance like it might solve all of your problems. No matter how convincing the debt consolidation professional may be within his beautiful office and how articulate he may be during his glowing presentation, you cannot just take his words at first glance. Look twice, look a third time, look as long and as hard as you need to until you understand every single word of the debt consolidation contract. Don't be afraid to ask for clarification from other consolidation specialists at the company you have been working with or even to bring the terms to a professional analyst at a neutral firm.
Remember, this is your life, and you need to have a clear picture of what the benefits and responsibilities of this debt consolidation program are going to be. If the consolidation counselor seems like they're glossing over the details when explaining the loan, make sure to insist that any questionable aspects of the program are explained in full. If you don't understand any part of the contract, ask about it and continue asking until you feel that you thoroughly understand every element of the consolidation. Force the consolidation specialists to go over everything in plain language without double talk, and ensure that even the smallest change has been recorded in written documents for later use. The contract is the heart of any financial agreement, especially debt consolidation, and you and your household must recognize and come to trust each and every line of the papers being signed in order to prevent troubles down the road. Think of debt consolidation as a sort of marriage between the borrower and the debt consolidation company, and, even more importantly, you should think of the initial consultations as a flirtation with you and the company circling the room and deciding upon mutual interests. In this way, you should not overly blame the consolidation officer for overly praising the virtues of his craft. Obviously, you want anyone who would take over your consolidation to believe in what they are doing and to believe their attempts to help the borrowers will meet with ultimate success, and, at the end of the day, no debt consolidation specialist will genuinely understand their potential clients' situation until they have gone through all possible scenarios after long nights studying credit reports and paperwork.
Honestly, it just doesn't matter that much what the debt consolidation company quotes you before your application is finalized. Legally, the only thing that will be looked at will be the contract they offer after (and only after) you have already applied and the final papers have been drawn up. Now, that contract should be very closely analyzed to see if there are any differences between the quote and what you were originally offered - as well, obviously, as whether these changes were mentioned by the company. To be sure, sometimes these differences are due to aberrations in your credit record that you might not even have known about. It could even turn out that there are discrepancies in your record that you need to clear up before re-applying, and the discovery of such errors will make quite the beneficial difference to your finances over the long run. However, under any circumstances, you should never assume that the rate you were first quoted before applying will be the same one that you are offered after the consolidation process has been completed. When the differences appear, you must make sure to ask your lender the reasons behind them, and, if you have done the smart thing and applied with multiple lenders to get a comparison rate, you should see what the other companies are now offering.
Also, while much of the specific jargon may beyond the ready capacity of the average borrower, much of the analysis can be done by the consumer him or herself. Any reasonable creditor should offer in good faith the entire cost of your ultimate financial burden, but, as seemingly with everything involving the consolidation process, one cannot always depend upon the supposed debt professionals. Nevertheless, once you have the basic information, you should be able to estimate the total with the assistance of one of the debt calculators available from any number of web sites. These calculators found on the internet allow a comparison of prices with the debts you hold at present and with what a company may charge for debt consolidation, but we strenuously urge borrowers to avoid those debt calculators found upon web-sites attached to creditors. When a lender's involved, the numbers somehow tend to be a bit skewed; oddly enough, the creditors' calculators often estimate suspiciously low for their own offerings while their competitors' numbers range higher than average. This isn't always true, of course, but make sure that you're able to enter the interest rates and associated charges manually. From there, you should be able to just multiply the monthly payment times the length of the loan plus whatever costs (traditionally called points) incurred from the lender, and that'll be roughly approximate.
Honestly, regardless of the good faith estimate, it's a good idea for borrowers to give this sort of thing a try. Even for the most trustworthy loan officers, mistakes are made, and debtors should not leave anything to chance.
This does deserve to be underlined. No matter how generously your friends and family have recommended a specific consolidation firm, you should always keep in mind the importance of investigating every debt management company before first meeting with them. The Better Business Bureau keeps records of customer complaints for a number of years, and it is always a good idea to check with your community's Chamber Of Commerce to see if they have anything to say about the company in question. Also, be sure to discover if they are part of any larger group or maintain any professional affiliations. Many of the more legitimate debt consolidation service - debt settlement negotiation counselors, in particular - have a certification process, and you should make sure that the industry's national board has some awareness of the company in question. As well, the Federal Trade Commission and similar governmental authorities are funded by your tax dollars to vouchsafe the consumer's welfare in such matters, and, while they are not always up to the task (just because they have not heard anything bad about the consolidation firm shouldn't mean that the firm itself is beyond dispute), it's never a bad idea to check. More importantly, you should understand your responsibility as a citizen to inform the Federal Trade Commission and Better Business Bureau and all such bodies about any malfeasance or incompetence or outright fraud suspected through the consolidation process to better protect other borrowers from unsavory business practices.
Even the best of companies will still unknowingly hire loan officers and counselors and other debt specialist that think nothing of unfurling predatory schemes hardly in the borrowers' best interests to turn a quick buck, and, while they will inevitably be discovered and dismissed from a profession whose lifeblood is word of mouth, a bad sort inevitably sneaks and lies their way into otherwise trustworthy firms. Check and double check every word of every line of the consolidation documents - even, if financially possible, have them analyzed by a neutral professional - before ever signing papers for your loan. Never stop looking for the best possible deal. Sometimes lenders will offer you fairy tale rates in order to gain your trust and then add additional fees and elevated interest to the final contract without telling you about them. Your only source for the deal you are going to get is the contract that is waiting for you sign.
Whatever you have been told, your only real offer is the offer that's set down on paper, waiting for your signature. Despite whatever your initial gut feeling may have been, the only thing that you should trust is the document that they put in front of you. As they say, a verbal contract is not worth the paper it is printed on, and promises and best case scenarios offered to land the client's business should not even be considered in bad faith. This is the nature of debt consolidation and any sort of competitive financing. No matter how much you want to believe that a person's word is their bond, in the legal world the only reality comes from the documents that are written down on a piece of paper. More to the point, no matter the relationship you may have developed with the debt consolidation professional, if there's anything on the contract that's different from what you expected, you shouldn't hesitate to re-open negotiations and work out the best deal for you and your family.
For more information on this topic or if you are in immediate need of debt relief or debt settlement, please visit TotalDebtRelief.net.
By: Cole Collins
Think of it this way. How do you want your life to look over the next two, five, ten, even twenty years? Do you still want to be paying off today's debts decades from now? Of course not. This is absolutely the worst possible scenario - more destructive in the long run even than Chapter 7 bankruptcy protection. The longer you postpone a debt, the more you are giving up in money lost to compound interest rather than paying off the principal of your debt. When you take out short term consolidation loans, on the other hand, most of the money you spend upon the program is going toward the actual debt instead of the creditors' pockets. While the debt consolidation approach may require a temporarily harsh sacrifice, shorter term loans will help to get you out of debt trouble with much less expense over the course of loan when compared to simply maintaining the minimum payments. There's just no way for ordinary consumers to manage truly large debt burdens spread among a number of different credit cards or accounts without some form of debt consolidation.
Again, as we've said, it is more than reasonable for borrowers to insist that they can take care of their own debt by themselves without resorting to consolidation techniques. Indeed, one of the reasons credit card companies have been so successful in creating the modern society of revolving debt has been the sheer powers of abstraction needed to fully understand precisely how difficult it would ever be to better your position without greatly changing the framework of your financial obligations. Nevertheless, the magnitude of debt management within a better existence should not be diminished. Instead of putting food on your creditors' tables, you'll lead yourself into a position where you can improve your own chances for success and use all that you earn to help your own family struggle through our uncertain economy with some degree of security. By taking out the right sort of debt consolidation loan, you are giving yourself the opportunity to renegotiate the terms of your loan payment in a way that shall prove far more beneficial for all future endeavors. When working with the right companies and agreeing to loans that have the right terms, debt consolidation will allow you to think not just about next month, but also to realistically plan out the rest of your life.
Of course, things are a bit more complicated than simply undertaking an examination of the debt consolidation alternatives. It's highly important when looking at all of the varied consolidation loan options to find out what approaches are likely to be the most beneficial for you and your family, and this can be a trek that takes months to be fully realized. For one thing, there are just so many variables to be studied at before even the most basic fundamentals are addressed. Personal loan consolidation programs are heavily dependent on credit history, for example, and your ultimate interest rates will to a large degree be dependent upon the FICO scores offered by the three main credit bureaus. Employment history is also a good determination of what sort of debt consolidation program would allow admittance. For debt settlement negotiation, to take just one example, the specific lenders and nature of your unsecured debt - above and beyond the credit and income qualifications - could well make or break debt settlement as a workable notion for your household. Within the boundaries of an article such as this, it's just too difficult (and, for your authors, ultimately irresponsible) to attempt to accurately predict which form of debt consolidation could be the right fit for your own family. In the following piece, we merely wish to show a few different tips and strategies about the larger consolidation approach so that those interested borrowers may have some sort of map through their own hard fought discoveries about the realities of debt consolidation.
It is certainly true that the process of searching out debt consolidation loans and learning about the various benefits and drawbacks of the consolidation process could seem daunting to consumers who have never before bothered (or, in many cases, needed) to take the time to learn much about debt management and the various forms it may take. If you are worried about your credit history and just want to make all of the bill collector calls go away, it can seem all too tempting for borrowers to simply take the first loan that's offered in order to solve short-term problems. Still, this has to be said to be one of the most common mistakes you could make. More importantly, it's a mistake that could have destructive effects far into any unwary borrower's future. The best thing to do in any of these situations is just to stop, take a deep breath, and understand that you don't have to agree to any loan consolidation program right away. You will almost certainly be able to get a better offer from other debt consolidation specialists if you take your time and investigate every last alternative. For this reason, you want to always make sure to wait until the last possible moment to commit to a debt consolidation program.
To paraphrase a truism from carpenters and tradesmen, analyze twice and sign once. As every borrower should know, the lenders' quoted prices may be quite different from what actually turns up on the eventual papers, and, if you should remain dubious (and, trust your authors, you should remain dubious) that the consolidation quotes will barely resemble what you will see once you actually apply for the loans, the only logical thing to do is to compare prices among multiple lenders. The debt consolidation professionals that you work with will argue this decision, to be sure, and they will ask, with no small amount of practiced guilt projection, that you leave everything within their hands. An experienced debt consolidation specialist will make you leave their office feeling like a discussion with one of their competitors would be somehow cheating, but this is not infidelity. A serious attempt at debt consolidation, not to exaggerate things, could make or break your household finances for up to a decade afterwards and, with egregious malfeasance on the part of the consolidation firm, perhaps even longer. The only person who really understands your own best interests is you, after all. This may sound obvious, but many borrowers considering debt consolidation somehow forget the practicalities behind the procedure, and, in order to make an enlightened choice, you need to really understand what options are on the table. By comparing offers from a number of different lenders, you can only then allow yourself an accurate picture of what options have been made available. Furthermore, only then can you make a truly informed decision about debt consolidation that will best help you and your family prepare for the future come what may.
Remember, the real perspective to look at as regards debt consolidation should always involve the long game. You should not be seeking to get ahead for just the next month. That's what credit card companies count upon. When considering consolidation programs, you should be looking to decide on the best option that will let you get ahead in life through eliminating the debts that hamstring household finance without artificially crippling any larger dreams or unfairly limiting your family's comfort. For the sake of argument (one offered hourly by telemarketers, we should add), let's say that someone offers you the chance to reduce your monthly payments by half. This would mean that, instead of paying five hundred dollars a month you would only be paying two hundred and fifty dollars, but, in order to do this, the debt consolidation company may be extending the terms of your loan from five to fifteen years. Let's even assume there shall be a significant cut in interest rates for the time being. When you calculate the actual terms of the loan, you will end up paying a good deal more money - perhaps twice as much, depending upon rate and amount - than you would have had you left things alone.
This is why it can be so difficult for those borrowers who'd never pretended to be financiers to understand just what the greater consequences of such consolidation loans may be. In the last case mentioned, you would spend far more in interest through the course of the consolidation, and, even without the costs of said consolidation added alongside, what you'd imagined to be a positive action will leave you even farther behind in debt than what you could have achieved by merely paying every dollar toward eliminating those burdens.
With a good consolidation loan boasting proper terms, you should not only be reducing those monthly payments, you would be decreasing the total amount of debt that needs to be repaid through the entirely of the loan. You work hard for the money you earn, we assume, and you do not want to throw it away simply because you feel an inexplicable loyalty to one smooth talking consolidation salesman. Read the details carefully for every document, pay attention to the fine print, comparison shop with competitors in the industry, and always make sure that you know what you're signing on for before they hand you the pen. In the end, the future is always up to you, and there is no reason to blame anyone else for your laziness or sloppy analysis if your debt consolidation should be handled poorly.
We cannot say this too many times: always know precisely what you are signing. It's hard to even estimate how many correspondents have written us complaining that they attached their names to contracts without taking the proper amount of time to understand the documents completely. In times such as these, particularly when debt collection agencies are breathing down your neck and even the minimum payments of credit cards seem depressingly our of reach, it may seem easy to just sign your name to anything that seems at first glance like it might solve all of your problems. No matter how convincing the debt consolidation professional may be within his beautiful office and how articulate he may be during his glowing presentation, you cannot just take his words at first glance. Look twice, look a third time, look as long and as hard as you need to until you understand every single word of the debt consolidation contract. Don't be afraid to ask for clarification from other consolidation specialists at the company you have been working with or even to bring the terms to a professional analyst at a neutral firm.
Remember, this is your life, and you need to have a clear picture of what the benefits and responsibilities of this debt consolidation program are going to be. If the consolidation counselor seems like they're glossing over the details when explaining the loan, make sure to insist that any questionable aspects of the program are explained in full. If you don't understand any part of the contract, ask about it and continue asking until you feel that you thoroughly understand every element of the consolidation. Force the consolidation specialists to go over everything in plain language without double talk, and ensure that even the smallest change has been recorded in written documents for later use. The contract is the heart of any financial agreement, especially debt consolidation, and you and your household must recognize and come to trust each and every line of the papers being signed in order to prevent troubles down the road. Think of debt consolidation as a sort of marriage between the borrower and the debt consolidation company, and, even more importantly, you should think of the initial consultations as a flirtation with you and the company circling the room and deciding upon mutual interests. In this way, you should not overly blame the consolidation officer for overly praising the virtues of his craft. Obviously, you want anyone who would take over your consolidation to believe in what they are doing and to believe their attempts to help the borrowers will meet with ultimate success, and, at the end of the day, no debt consolidation specialist will genuinely understand their potential clients' situation until they have gone through all possible scenarios after long nights studying credit reports and paperwork.
Honestly, it just doesn't matter that much what the debt consolidation company quotes you before your application is finalized. Legally, the only thing that will be looked at will be the contract they offer after (and only after) you have already applied and the final papers have been drawn up. Now, that contract should be very closely analyzed to see if there are any differences between the quote and what you were originally offered - as well, obviously, as whether these changes were mentioned by the company. To be sure, sometimes these differences are due to aberrations in your credit record that you might not even have known about. It could even turn out that there are discrepancies in your record that you need to clear up before re-applying, and the discovery of such errors will make quite the beneficial difference to your finances over the long run. However, under any circumstances, you should never assume that the rate you were first quoted before applying will be the same one that you are offered after the consolidation process has been completed. When the differences appear, you must make sure to ask your lender the reasons behind them, and, if you have done the smart thing and applied with multiple lenders to get a comparison rate, you should see what the other companies are now offering.
Also, while much of the specific jargon may beyond the ready capacity of the average borrower, much of the analysis can be done by the consumer him or herself. Any reasonable creditor should offer in good faith the entire cost of your ultimate financial burden, but, as seemingly with everything involving the consolidation process, one cannot always depend upon the supposed debt professionals. Nevertheless, once you have the basic information, you should be able to estimate the total with the assistance of one of the debt calculators available from any number of web sites. These calculators found on the internet allow a comparison of prices with the debts you hold at present and with what a company may charge for debt consolidation, but we strenuously urge borrowers to avoid those debt calculators found upon web-sites attached to creditors. When a lender's involved, the numbers somehow tend to be a bit skewed; oddly enough, the creditors' calculators often estimate suspiciously low for their own offerings while their competitors' numbers range higher than average. This isn't always true, of course, but make sure that you're able to enter the interest rates and associated charges manually. From there, you should be able to just multiply the monthly payment times the length of the loan plus whatever costs (traditionally called points) incurred from the lender, and that'll be roughly approximate.
Honestly, regardless of the good faith estimate, it's a good idea for borrowers to give this sort of thing a try. Even for the most trustworthy loan officers, mistakes are made, and debtors should not leave anything to chance.
This does deserve to be underlined. No matter how generously your friends and family have recommended a specific consolidation firm, you should always keep in mind the importance of investigating every debt management company before first meeting with them. The Better Business Bureau keeps records of customer complaints for a number of years, and it is always a good idea to check with your community's Chamber Of Commerce to see if they have anything to say about the company in question. Also, be sure to discover if they are part of any larger group or maintain any professional affiliations. Many of the more legitimate debt consolidation service - debt settlement negotiation counselors, in particular - have a certification process, and you should make sure that the industry's national board has some awareness of the company in question. As well, the Federal Trade Commission and similar governmental authorities are funded by your tax dollars to vouchsafe the consumer's welfare in such matters, and, while they are not always up to the task (just because they have not heard anything bad about the consolidation firm shouldn't mean that the firm itself is beyond dispute), it's never a bad idea to check. More importantly, you should understand your responsibility as a citizen to inform the Federal Trade Commission and Better Business Bureau and all such bodies about any malfeasance or incompetence or outright fraud suspected through the consolidation process to better protect other borrowers from unsavory business practices.
Even the best of companies will still unknowingly hire loan officers and counselors and other debt specialist that think nothing of unfurling predatory schemes hardly in the borrowers' best interests to turn a quick buck, and, while they will inevitably be discovered and dismissed from a profession whose lifeblood is word of mouth, a bad sort inevitably sneaks and lies their way into otherwise trustworthy firms. Check and double check every word of every line of the consolidation documents - even, if financially possible, have them analyzed by a neutral professional - before ever signing papers for your loan. Never stop looking for the best possible deal. Sometimes lenders will offer you fairy tale rates in order to gain your trust and then add additional fees and elevated interest to the final contract without telling you about them. Your only source for the deal you are going to get is the contract that is waiting for you sign.
Whatever you have been told, your only real offer is the offer that's set down on paper, waiting for your signature. Despite whatever your initial gut feeling may have been, the only thing that you should trust is the document that they put in front of you. As they say, a verbal contract is not worth the paper it is printed on, and promises and best case scenarios offered to land the client's business should not even be considered in bad faith. This is the nature of debt consolidation and any sort of competitive financing. No matter how much you want to believe that a person's word is their bond, in the legal world the only reality comes from the documents that are written down on a piece of paper. More to the point, no matter the relationship you may have developed with the debt consolidation professional, if there's anything on the contract that's different from what you expected, you shouldn't hesitate to re-open negotiations and work out the best deal for you and your family.
For more information on this topic or if you are in immediate need of debt relief or debt settlement, please visit TotalDebtRelief.net.
By: Cole Collins
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