January 14, 2013

Stress Relief: The Advantages of Debt Consolidation

The current economic slowdown was brought about by many lenders giving away loans to companies and individuals without proper verification of their repayment capacity. Due to this, millions of people defaulted on their loan amounts as they could not pay monthly installments. This resulted in banking crises with homes and commercial properties being repossessed. Aside from this, many people also have large amounts of credit card debt, and personal loans at very high rates of interest.

What is the Best Way to Manage your Debt?

To help all those who are reeling under mounting debts, many debt management companies offer debt consolidation solutions which help in reducing the debt burden of the borrowers to some extent. The best thing about these debt consolidation solutions is that they combine your many, high-interest debts into a single, low-interest debt. You only have to pay one monthly installment to the lender. The process is quite simple; a debt consolidation company will arrange a low interest debt consolidation loan for you.

You can repay all your existing high-interest debt using this low interest consolidation loan. These debt consolidation loans vary, but may cover most of the debt that you may have accrued over time, such as student loans, credit card debt, personal loans or medical bills.

The Best Debt Consolidation Loan for People with Bad Credit

One of the best ways to get a good deal on a debt consolidation loan is to have a reasonably good credit rating. However, large numbers of people are suffering with a poor credit score and cannot get access to finance at attractive rates. If you have a low credit score, you can still get a bad credit debt consolidation loan at good terms. For this, you will have to approach lenders that specialize in offering bad credit debt consolidation loans.

Lenders in such cases may charge high interest rates due to the risk involved in lending the loan to you due to your poor credit score. In any case, the interest rate on these loans is still less than what you currently pay for your credit cards or personal loans. Therefore, you will still be able to save considerable money by consolidating your debt with bad credit debt consolidation.

Get the Loan that Suits your Financial Circumstances

You can get two types of debt consolidation loan: a secured consolidation loan or an unsecured consolidation loan. The lender of a debt consolidation loans will first assess your present financial circumstances and your repayment capacity. All those who cannot offer any collateral can get unsecured debt consolidation loans. These loans come at a somewhat higher rate of interest and shorter repayment duration (5-15 years). However, those who can offer any collateral can get this loan at very low interest with a longer repayment duration (20-30 years).

Aside from wiping away your high interest debt, debt consolidation loans also help in improving your credit score. When you will regularly pay your monthly installments, you will see amazing improvement in your credit score.

January 2, 2013

The Importance of Getting Out of Debt

road map out of debt

There is a huge number of the population that is dealing with debt problems right now, especially with the present financial crisis at hand. A lot of people today are suffering the consequences of spending too much or borrowing too much money. There are people who spend the money that they have not yet earned thanks to the help of a credit card - not realizing how bad of an idea this is. Some people have already lost their jobs thanks to the financial crisis and it is safe to say that there are a good number of these people who have debts that they have to pay for.

Though not everyone lost their jobs in the financial meltdown, a lot of people are suffering the same problem. Most people right now are spending too much but they do not earn enough money to pay for the items that they spend on. These people who are in debt fail to accurately calculate how much they earn and how much they spend. These people also often fail to count the interest rate of using their credit card which plays a huge factor on why most people are unable to pay off their debt.

Debt relief is possible for people who really want it because there are ways to achieve it. The road to getting rid of debt is not easy because it requires a lot of drastic measures to ensure that spending is done properly so that a person does not incur any more debt. A lot of people have been able to find a way to get rid of their debt and live their lives happily without debt but it will require a lot of self-discipline to be successful. If you think you are unable to do it on your own, there are many ways to get help for debt relief.

Some people who search for debt relief look for the help of a financial planner to help them out. They ask the help of a planner to see all the things that needs to be considered to know how much it would and how long it would take to get out of debt. This is a very straightforward way to deal with debt problems but the person will have to be very strict in making sure that he or she follows the plan to get out of debt quickly.

Another way to get debt relief is through counseling. There are a lot of people who have turned to counseling to get out of debt. Counseling is not just for marriage anymore because it is also a very effective method of getting out of debt. A counselor can teach a lot of things to a person who is in debt so that he/she can solve his/her money problems in the shortest period of time. The counselor can enlighten a person in debt so that a person can see and learn from the mistakes made in the past. This will make it easier to understand where the debt came from and how to get rid of it.

For more information on debt counseling, visit www.creditguard.org

November 29, 2012

5 Things to Look For In A Credit Consolidation Company

If you are interested in credit consolidation, choosing the right company is of the utmost importance. Choosing the wrong company could end up costing you more money and causing you lots of heartache. Below I am going to share with you 5 important things you should look for in a credit consolidation company.

A Good Reputation

Ever heard the saying your reputation precedes you? Well, it’s the same with a credit consolidation company. Word of mouth is a powerful market tool.  If they are a good company you will hear about it. People will rave about how great their service is. When looking for a credit consolidation company makes sure they are known for their honesty and professionalism.

Thanks to the internet you can easily get online and find out all you need to know about a company. Just go to your favorite search engine and type in the company name. A simple search will give you all the information you need.

A Good Long Standing History

Check to see how long the company has been in business. Do they have a good long standing history? A company that has a good long standing history will be able to get you better results than a company that doesn't. Many times these companies will have special relationships with creditors that will allow you to get great deals.

Creditors won't work with just any credit consolidation company. That's why it’s so important you choose one with a good history.

What Services Can They Offer You?

Before doing business with any company find out what they have to offer you. Every debt situation is different and will require a different solution. You want to make sure they have the solution that works best for you. Also make sure they provide some sort of financial counseling and management.

Results

At the end of the day results is the name of the game. You want to work with a company that can give you the results you desire. You need a credit consolidation company that can get you the lowest rates and the best terms possible. You want a company that will work hard to help you get out of debt as quickly as possible. Otherwise it’s a waste of your time and money.

Affordability

Credit consolidation companies make their money by charging you a fee. Usually the fee is included in your monthly payment. You want to make sure the fee is reasonable. The higher the fee, the less your creditors will be getting every month. So before you sign on with any company find out how much the fee is. If it’s too high keep shopping around until you find one that’s reasonable.

And there you have it. Five things you need to look for when picking a credit consolidation company. Make sure they have a good solid reputation, a good long standing history, services that cater to you and your specific situation, help that gets you the results you are after and affordable fees. If you find a company that has all 5 of these, you have found yourself a winner.  To start your search, visit http://www.creditguard.org/.

November 1, 2012

Consolidate Credit Card Debt if You're having a Hard Time

empty wallet

If you are having a hard time making ends meet, one of the many options you have would be to work with a debt consolidation company, which will help you consolidate credit card debt. Not only are these trained professionals going to call your creditors on your behalf, they are also going to help you reduce the overall debt amount you owe. Since you are only going to make one monthly payment (to the consolidation company), you are going to find that you do not have to worry about making a payment out to each of your creditors each month.

The top consolidation companies are going to call your creditors on your behalf, and will negotiate a lower payment amount. In most cases, creditors will accept due to the fact that they will receive something, as opposed to non payment. Additionally, the total debt amount is going to be so much lower when you turn to a consolidation company to consolidate credit card debt, that the total debt amount is going to be paid off in a fraction of the time, as opposed to taking a longer period of time to pay back due to higher interest rates.

When you are hiring a consolidation company, you are going to pay them a fee for the negotiations they are going to do on your behalf. But, this one time fee is well worth it when you see how much you are going to save in total, for all of the debts that you owe. When the consolidation company calls on your creditors, they will greatly help bring down the debts, late penalties and fees, and will get the creditors to lower the total debt amount for you. This option to consolidate credit card debt is an alternate for those who are considering bankruptcy. Not only is the debt consolidation loan going to stay off your credit report, it is also going to help you build back up the credit score, as you are going to be making payments, as opposed to avoiding your creditors and the bills that you owe them.

When you are having a difficult time paying off creditors, and your creditors are not willing to negotiate with you personally, one option to consider is calling on a debt consolidation company to do the tough work for you, and negotiate down your debt amounts. As a debtor you are going to pay much less than the full amount you owe, you will only have one monthly payment to make, and you are going to get out of your debt in a fraction of the time it would take if you tried to negotiate on your own. So, regardless of the full amount you owe, if you can't make the payments, have fallen behind, or need any other form of help from trained professionals, the best option for you to consider is to turn to a consolidation company, and consolidate credit card debt to all of the creditors you owe any money to.


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