All About Debt Consolidation Loans
Debt consolidation loans can be the answer to a number of financial problems, but before you take the plunge, make sure you're well informed. What is a debt consolidation loan? Debt consolidation is when you arrange a single loan to cover a...
Canadian Debt Consolidation
Canadian Debt Consolidation Life throws people a number of challenges often on a daily basis and unfortunately, some of those are financial challenges. The loss of a job, an illness and many other situations can make paying off loans difficult...
Cheap debt consolidation loans - inexpensive way of winning financial freedom
The rising cost of living can force you sometimes to overburden your pocket with loans. It may solve financial issues for the time being but eventually then they are to be paid back. Paying the interest rate on each loan is highly expensive. But it...
Overwhelmed by student loan debt? Consider a Consolidate Student Loan.
A consolidate student loan is the perfect solution for people who need help managing their debt. If you have several different loan payments but want to make only one payment per month, you should apply for a Federal Consolidation Loan. With...
Securing a Debt Consolidation Loan
It's the day you've been waiting for the last two weeks...
payday and the only time when your face lights up and you
actually go to the office with a lot of wonderful, dreamy
thoughts in your head - such as how fast you'll be able to bolt
|Reduce Debt - How To Prevent Bankruptcy By Reducing And Consolidating Your Debt
You can prevent bankruptcy by consolidating your debt with the
help of a loan or debt consolidation agency to reduce your
monthly payments and quickly pay off your liability. But before
signing final paperwork, you should develop a financial plan and
research your options.
Goal Of Consolidation
The goal of consolidation is to lower your monthly payments so
you can pay off your debt and avoid bankruptcy. However,
consolidation only works if you make it part of a larger
financial plan. You have to be committed to reducing your
liability and saving for financial emergencies.
Once you have consolidated your loans, it is a good idea to
build a financial cushion of six months worth of cash reserves.
This ensures that you can pay cash for the inevitable financial
emergency and not increase your credit load.
Your next goal should be to make extra payments. The sooner you
can pay off your principal the less you will pay in interest
Types Of Debt Consolidation Loans And Programs
The two types of debt consolidation loans are mortgage loans and
personal loans. Mortgage loans are ideal since their interest is
tax deductible. However, you need to be sure that you have
enough equity to borrow against and that you can recoup the cost
of up front fees.
The other option is to use a personal loan. Personal loans are
based on your credit score and income. Personal loans typically
have lower interest rates than
credit cards, but are usually
higher than mortgages rates.
Instead of a loan, you can also use a debt consolidation
service. These companies will negotiate lower interest rates
with your creditors. There are no fees involved since these
companies are usually non profit. They also provide credit
counseling, offering financial advice and guidance.
Debt Consolidation Providers
Depending on what type of loan or program you choose, debt
consolidation providers are relatively easy to find. If you are
planning to use your home equity, then you will want to search
for a mortgage lender. Many lenders offer free quotes online for
Personal loan lenders also can be found online. As with any
financing company, you need to research rates and terms to find
the best deal. Requesting a quote from a lender does not lock
you into a loan. Legitimate lenders will be more than willing to
provide this information to help you make a wise financial
You can also get connected with debt consolidation services
online. Some directory sites will help you find an agency in
your area or you can work with a national agency.
About the author:
See my recommended Debt
Consolidation Companies online. Carrie Reeder is the owner
of ABC Loan
Guide, an informational website about various types of