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Tuesday, May 25, 2010

Is it Wise to Obtain Bad Credit Debt Consolidation Loans When You Are Unemployed?

Nowadays, in United States, the unemployment rate is still on the rise but the economic growth is too slow. For people who are currently unemployed and they are having poor credit rating, is it the right time for them to rebuild their credit by applying for bad credit debt consolidation loan?

The answer is No. In my personal point of view, before you obtain this type of loan, you should first assess your financial situation carefully. Since you don't have a full time job, you need to ask yourself honestly whether you have any side income to pay your new loan monthly. Even if you have a part time job, is the income sufficient to cover your monthly necessities and monthly commitment? There are in fact certain financial risks involved when you are applying such loan during the unemployment.

A very typical poor credit debt consolidation loan is home equity loan. In general, it is quite easy to obtain bad credit loan if you own a property. You won't face much difficulty during your application. However, you are reminded to think twice. It is indeed important for you to realize that the loan ultimately will need to be repaid soon. When your assets, you will definitely be qualified for the loan but in the absence of your job, do you really think that you can make the monthly repayment promptly? What if you can't pay back on time? If you miss a few payments, you stand a high chance to lose your property. If you always have late payments, your credit score will be worse.

For people who have just lost their jobs recently, obtaining unsecured loan is still possible. But many lenders are smart. They usually consider your job as the index of your ability to repay the loan without default. If they know that you are currently jobless, some of them are still willing to offer you the loan but with very high interest. Let's think properly. Is it worthwhile to bear the cost? The high interest is actually your financial burden. Since you are currently having zero income, what is the point for you to rebuild your credit with such high interest?

To sum up; you don't need to rush to rebuild your credit when you are jobless. If you don't plan your finances well, you will be in deep trouble. Hence, understand your financial position clearly so that you will be able to make better decision. You should only consider getting a loan when you have unexpected financial emergencies.

READ MORE - Is it Wise to Obtain Bad Credit Debt Consolidation Loans When You Are Unemployed?

Monday, May 24, 2010

Cheap Debt Consolidation Loans - There Exists Flexibility to Ensure Easy Repayment

One issue for every financial consumer out there is trying to find the proper terms to suit your needs. Life is not black and white, which means that people have changing needs. What might have been true one year ago might not be true today, so it is important to have flexible loan terms at your disposal. With all of the different debt relief programs out there today, you should know first of all that some of them offer solid repayment terms, while others struggle in this regard. Debt consolidation loans are known for flexible terms, as the consolidators are truly looking to help people out as much as they can.

The nice thing about consolidation loans is that they are completely consumer-focused. The programs that provide these loans are out there for the purpose of serving consumer, so it makes sense that they would adjust loan terms to suit what you can do. They want to get you out of debt, so it doesn't make sense to ask you to do unreasonable things. When you enter into a consolidation program, you will first sit down with a professional to discuss your options. That person will let you know what they have available and they will work with you to come up with a first class solution.

Additionally, you should know that consolidators look at your income and they take a realistic view of your capabilities. The thing that got you in the mess in the first place was a situation where you had no chance of properly repaying the loan. With your new loan, everything is paid off and you get to start brand new. Even if you have to take an extended loan term in order to bring down the payment amounts, that is alright. You will once again be in possession of a loan that is feasible, which is generally a step up from what you have been doing.

Don't hesitate to take advantage of this, as it's designed to make your life easier. You should be excited about the possibilities in this regard. Consolidators are remarkably willing to mold their programs to what you have going on, no matter how unique or interesting your situation might be. Even if you have the worst possible financial situation going on, they can find a way to make it work, which is why so many people are turning to consolidation today.

READ MORE - Cheap Debt Consolidation Loans - There Exists Flexibility to Ensure Easy Repayment

Sunday, May 23, 2010

A Reaffirmation Agreement - Is it in Your Best Interests?

If you are in the midst of filing for bankruptcy and are afraid of losing your car or other piece of personal property due to non-payment, entering into a reaffirmation agreement may seem like a smart move.

A reaffirmation agreement can enable you to retain possession of your car, house or other piece of personal property in exchange for a promise to your loan provider that you will continue to make payments on a debt that may have otherwise been eligible for discharge under bankruptcy protections.

However, reaffirming the debt may not be in your best interests. There could be other options available to you that would enable you to keep your car without reaffirming your current loan. A qualified bankruptcy attorney may be able to help ease your financial situation without causing you to lose your property by coming up with additional solutions, such as negotiating a reduced payment plan for you with your provider.

If you chose to reaffirm your current loan as is, it is possible that you will be unable to continue meeting your payment obligations in the future, even after a majority of your debts are discharged through bankruptcy. In that case, you could find yourself facing repossession or foreclosure again in just a few short months.

Talking your situation over with a qualified bankruptcy attorney is your best chance to better your financial situation while meeting your goal of keeping your car or house.

If you have questions about filing for bankruptcy or whether or not to sign a reaffirmation, contact a bankruptcy attorney in your jurisdiction.

READ MORE - A Reaffirmation Agreement - Is it in Your Best Interests?

Saturday, May 22, 2010

Debt Consolidation Loan Consequences

Consumer debt is a real serious threat the American family. Last year credit card companies earned 150 Billion dollars from the American consumer. Unfortunately $90,000,000,000.00 came from penalties and late fees. It is obvious that the credit card companies and financial institutions have replaced the local loan shark. The result of all this debt is the destruction of the family. The mismanagement of money and in particular credit card debt is the number one cause of divorce and broken families. Domestic abuse and violence is a direct result of too much credit card debt.

Many families are seeking was to manage their debt load. One of the most common sought after solutions is a credit card debt consolidation loan. Many financial institutions and debt counselors recommend a debt consolidation loan. However what many people fail to realize is that there are debt consolidation loan consequences. There are two types of debt consolidation loan on the market today. These included secured and unsecured loans.

A secured loan is tied to some form of equity and in most cases it will be your home. A second mortgage will in many cases lower your interest rate on your debt below what you are paying on your credit cards especially if you have missed a payment. It is not uncommon for a credit card company to raise the interest rate on your account to more than 30 percent after just one missed payment. Basically you have taken the equity from your home to pay off your credit card debt. Studies have shown that unless you cut up all your credit cards and close all your consumer credit accounts you will again end up in financial crisis within 3 years.

Unsecured debt consolidation loan consequences are greater than most secured loans. Interest rates are higher and many have the same loan shark triggers that cause your interest rates and payments to sky rocket if you miss or are late on a payment. Many credit card counseling services will market these loans to their customers. One of the reason they do so is that they sometimes make money one each loan they refer to a financial institution. This is clearly a conflict of interest. If your debt counselor recommends or offers an unsecured consolidation loan you should ask them if the profit from the loan.

Again studies have shown that more than 76 percent of the people who use debt consolidation loans to pay down their credit card and consumer debt end up back in serious debt within 3 years. Unless you change your spending behavior you are guaranteed to end up in financial crisis again. These serious debt consolidation loan consequences will trap you and your family. All of which places you further in debt and increases the damage and stress to the family.

To avoid these debt consolidation loan consequences you will need to work with a credit card counselor that will help you pay down your debt using sound financial principles. That means cutting up all your credit cards and living on a cash basis. If you follow your debt elimination plan you can be debt free in a relatively short time. The average family is able to pay off all its consumer debt in 3 years or less. In addition they will have the ability to invest in the family's future. Being disciplined and following a debt elimination plan will protect you from all of the debt consolidation loan consequences and help you become debt free.

READ MORE - Debt Consolidation Loan Consequences

Friday, May 21, 2010

College Consolidation Loans - Student Loan Consolidation Comparison

If you currently have a student loan then you probably know what I am saying when I tell you they are a double edged sword. On the one hand if you didn't get the loan you wouldn't have been able to complete college and have the degree that you now hold. On the other hand, if you didn't get the loan and you didn't have all those payments to make you might be able to pay all of your other bills on time or maybe afford a nicer car, maybe even perhaps live in a nicer house.

If you are truly having difficulty making your payments and even are at risk of losing your good credit standing because of them then you really may want to consider a college consolidation loan.

With this type of loan, just like a standard debt consolidation, you merge all of your high interest loans into a loan with a lower rate of interest that allows you to make one single payment. This really makes life a lot easier and more manageable.

This loan could really be a great solution for you. Especially if you are behind and have tried all of the options of deferment or forbearance that might be offered with your current loans. Many times with a direct student loan consolidation you get a clean slate with your loan. None of the old late payments or problems have bearing anymore.

With the new loan you get to, if needed, take advantage of deferments and forbearance once again. Hopefully though this won't be necessary because you, more often then not, get a lower interest rate which gives you a much lower payment. Another awesome benefit of securing this loan is that your other loans appear on your credit report as being paid off which is great for your score.

With this loan you have basically four different payment plans available for you to choose from.To understand what they are you really need to look at a student loan consolidation comparison so you will know which loan will fit into your needs and budget the best before deciding.

READ MORE - College Consolidation Loans - Student Loan Consolidation Comparison

Thursday, May 20, 2010

Payoff Debts - Home Equity Debt Consolidation

Because of high finance fees, reducing credit card debt is often challenging. For this matter, many consumers seek other practical ways to eliminate debt. If you own a home, consider a home equity debt consolidation loan. Debt consolidation loans offer a fast and simple way of becoming debt free. Here are a few tips for obtaining a home equity loan.

What are Home Equity Loans?

Homeowners are likely very familiar with how home equity loans work. Because of rising home values, many properties have seen a sudden appreciation. The difference in the amount owed to mortgage companies and the market value of the home equals equity. Hence, if you owe $75,000, and your home is worth $150,000, the equity amount is $75,000.

By obtaining a home equity loan, homeowners are given the opportunity to tap into their equity, and use the money for any purpose. There are different types of home equity loans. Some lenders may only approve loans for 80% of the equity, whereas others will offer 125% home equity loans.

Using Home Equity Loans for Debt Consolidation

Home equity loans open the door to becoming debt free. Once funds are acquired, simply use the money to payoff debts (credit cards, auto loans, student loans, etc.) Rather than sending payments to several creditors, make a single payment to the home equity lender.

A home equity loan will not remove debt. However, these loans make managing debts easier. Furthermore, the interest rate for most home equity loans is much lower than credit cards, thus enabling you to payoff the loan within a few short years.

Pros and Cons of a Home Equity Loan

There are several benefits to obtaining a home equity loan. For starters, once credit card balances are paid in full, your credit score will likely increase. Secondly, home equity loans are affordable. By consolidating debts, you can expect a monthly savings of approximately 40%.

Unfortunately, there is also a negative side to home equity loans. If used responsibly, home equity loans are very useful for debt consolidation. Yet, once credit cards are repaid, many people re-accumulate debt. Additionally, some homeowners are unable to afford home equity loan payments. Because loans are secured by your home, several missed payments could result in foreclosure.

READ MORE - Payoff Debts - Home Equity Debt Consolidation

Wednesday, May 19, 2010

Controlling Your Credit Debt

The state of the economy has certainly taken its toll on millions of Americans who have lost their jobs, had to take pay cuts, or have watched their nest eggs crumble. The real estate market has also taken a plunge as investors and brokers have taken hit after hit with unpaid mortgages from the millions who have not been able to keep up their payments.

All this has made an impact on credit usage and ratings. Some are maxing out their credit cards in hopes that their financial situation will get better and they'll get it all back on track later. Others have had nowhere else to turn but to their credit cards to keep food in their mouths and keep most of the bills paid.

The biggest problem is the amount of people that are out of a job and looking for another. It makes for stiff competition. Bills keep piling up and physical necessities don't go away because you can't pay for it.

This has left great numbers of people in search of a way to manage their debts and lives. Debt consolidation has never been more relevant than it is right now. It is a way to combine your debts, work with your creditors, lessen the load, and keep it that way.

If you're one of the many that feel like you're hanging on by a few fingernails, then take a serious look at a debt consolidation firm. They may have the answers you need to get a better grip on your financial present and future.

READ MORE - Controlling Your Credit Debt

Monday, May 17, 2010

An Introduction To Unsecured Student Loans

There are many students in the United States who are having a hard time paying their student fees. For most student loans, it requires that you have some collateral, meaning you need to have some equity such as a home or a car before you can even about getting a student loan. So what happens if you do not have both?

I should let you know there is another type of loan known as unsecured student loan. It is particularly useful for students who have no collateral or have bad credit. Unsecured student loan is simply a student loan where the lender knows your financial situation is not good but is still willing to lend you a loan.

Usually, unsecured student loan interest rates are higher than normal student loans but that is to be expected since the lender is taking a larger risk in lending you the money.

Currently, both private and government have unsecured student loans available. I do need to advise you that if you intend to get an unsecured student loan, be prepared to be questioned intensely. That's because such loans are considered high risk by most lenders therefore they will do a lot of background checks and questioning before giving you the loan.

The advantage of an unsecured student loan is intended to pay off all your existing student loans and take up one student loan, repayable on a monthly basis. The interest rate may be higher but at least you don't have to constantly worry about paying various student loans.

Some lenders also impose a limit on the loan amount. Keep in mind the risk the lenders are taking, therefore do not expect to get a huge unsecured student loan. Usually the loan amount is below $20,000.

Like I said earlier, the advantage of taking up such a loan is that you can repay all your existing student loans and take up a new student loan. If you have a good credit, then getting a student loan consolidation plan from either private lenders or the government is fine. Unsecured student loans is really meant for students who cannot qualify for a consolidated student loan.

Nowadays living with debt is part and parcel of life. The main point of getting a student loan is to allow you to concentrate on your education without worrying about the financial part. Also I would like to mention no matter what kind of student loan you are taking, it is important to know how to manage your debt and not be drown by it. Learning how to manage your debt is more important than getting the cheapest student loan.

READ MORE - An Introduction To Unsecured Student Loans

Sunday, May 16, 2010

Learning Why Student Loan Debt Consolidation Is So Important

These days it has never been more important to get a quality education, but unfortunately the costs of such a quality education have been rising far faster than the rate of overall inflation.

It seems that there are fewer and fewer students who can get through four or five years of college without some sort of financial aid, and that means that student loan debt consolidation is more important than ever before.

Exploring All Of The Options Available

When looking at loan to consolidation options it is important to explore all of the options available, and to make sure you are getting the best deal. There are a number of different programs available for a variety of different students and it is important to take advantage of all programs for which you qualify.

Getting Details From Your Financial Aid Officer

One good place to start the search for the perfect choice at the financial aid office at your school.

The financial aid officer at the college or university you are attending or have attended should have complete information on the various types of programs, as well as some tips for saving money when consolidating those student loans.

Striking A Balance Between The Length Of The Loan And The Monthly Payments

When it comes to planning it is important to try to strike the right balance between the length of the loan and an affordable monthly payment. The length of a it can vary quite a bit, from only a few years in length to loans stretching out for decades. While a longer term will generally result in a lower monthly student loan debt consolidation loan payment, many students will be uncomfortable stretching out payments for that long.

It is important of course to get an affordable monthly payment on the student loan debt consolidation loan you choose, but it can be just as important to get it paid off and out of your life.

READ MORE - Learning Why Student Loan Debt Consolidation Is So Important

Saturday, May 15, 2010

Private Student Loan Consolidation Qualifiers

Your alternative to Federal Student Loan Consolidation is Private Loan Consolidation. Most of the private student loan consolidation plans are sort of refinancing for getting out of the unsecured loan problems. Though all loan consolidations are regulated by the Federal as well as the concerned State Laws the interest rates, terms and conditions of the private student loan consolidation vary from firm to firm.

While interest rates with some of the agencies are higher in comparison to others, other benefits they provide may suitably counter balance the deficiencies in their plans. Therefore it is essential for you to get well acquainted with the details of the offers made by any private company because as you decide to go for the private loan consolidation many companies with come forward with offers. While some of them might look very interesting on the face they may be lacking in intrinsic values.

Private Student Loan Consolidation Interest rates

Some of the companies offer their beneficiaries the benefits of the introductory rate for the first year that could be as low as 7.9%. Such interest rates are derived basing on the three month LIBOR added with 5% to 8.5% interests. LIBOR means the London Inter Bank Offered Rates.

Unlike the Federal Loan consolidation you will have to pay fees in the range of 1% to 5% on both your personal credit and co-signer credit. They will however not be due immediately and will only be charged on the closure of the loans. Since they are added to the loans it increases your loan volume but the advantage is that it prevents any further out of pocket expenses that could accrue.

Private Student loan consolidation for undergraduates

In most of the private student loan consolidation plan the interest rates charged for undergraduates are identical. The primary rate is LIBOR added with 5 to 8.5 percent interests. Overall it may come in the range of 7.9% to 11.93%. There will be fees of around 1% to 5% depending on the type of consolidation you have opted for. The maximum term that is permissible is 25 years and the maximum balance for which such consolidation is permitted is $1, 50,000.

For example, if you have a principal of $50,000 and LIBOR rate at around 2.8%, your interest rate could be in the range of 7.9% to 8.1% for 25 years period. The prerequisites would be fees of 1% and your good credit rating which means you must not be defaulter against any loan as on date.

Get private student consolidation online

With the Internet and World Wide Web there to help you out getting the private student loan consolidation [http://www.badcreditokay.net] is easy. You can get them online. Numerous traders are providing such loan consolidation facilities and the only task for you would be to find out the best consolidation loan rate student. You can obtain the free information package provided by the providers on line or visit their FAQ section. Some of the providers also have a group of experts to enlighten you on various aspects of best student loan consolidation.

READ MORE - Private Student Loan Consolidation Qualifiers

Friday, May 14, 2010

The Truth Behind Zero Percent Rate of Interest

Most people get lured by advertisements that charge zero percent rate of interest. Most people buy products that are available at zero percent rate of interest even if they don't have much use for the product. Even though your cost of borrowing is zero and you are not paying any interest for the items purchased you still have to repay the amount borrowed. Companies selling their products at zero percent rate of interest are benefited because there is an increase in their sales. Many people who take zero percent interest loans do not calculate their monthly cash outflow. Even if you have to pay a small amount every month, this amount is affecting your savings. If you avoid spending on products that you don't need you can save more for your future.

However not all zero percent loans are bad. There are many states that offer zero percent loans to students who want to peruse their higher education. These loans have little risk attached to them and aid you in completing your studies. Some students tend to misuse this facility and apply for maximum loan possible. Once their loan is approved they spend the loan on their education without knowing how to repay the amount borrowed. Therefore it is important that students don't over borrow and look at alternate sources of financing their education. These students can take up part-time jobs to pay for their education expenses.

So next time you see an advertisement that charges zero percent rate of interest when you buy a particular product, ask yourself if you really need the product. If there is no genuine need for the product then it is best that you avoid buying the product.

READ MORE - The Truth Behind Zero Percent Rate of Interest

Thursday, May 13, 2010

Government Debt Consolidation Loans - Consolidate Your Federal Student Loan Debts

Are your debts becoming too much of a burden for you? Well, your country can help you deal with this crisis in the form of government debt consolidation loans.

Although, there are many debt consolidation loans that you can consider to can help pay multiple creditors through a single monthly payment. Your best option still may be the several government backed debt consolidation loans that the federal government offers its citizens due to various reasons.

What are Government Debt Consolidation Loans?

These loans are made available by the federal government to help you pay multiple loans and creditors using similar principles of debt consolidation like any other private program. The loan allows you to consolidate multiple loans into one. This way you only need to make one single payment each month rather than three or four.

As you already know, in most cases the loans are high-interest unsecured ones; therefore converting them in to secured loans is bound to be beneficial for the borrower as it leads to low interest rates. They save you money and make your financial planning and budgeting easier.

Debt Consolidation for Federal Student Loans

Students who have multiple federal student loans to fund their educational expenses can benefit from government backed debt consolidation loans. Government backed loans help make repayment of the loans feasible for student or parents - without the hassle of having to deal with multiple loan payments every month.

There are many loans offered by the government that are designed to help out students. There are two programs under the Higher Education Act (HEA) which can allow consolidation loans. One program is Direct Consolidation Loan Program and the other is FFEL or Federal Family Education Loan program.

In the program, the Direct Consolidation Loan program, the US Department of Education helps students through debt consolidation loans to pay off education loans. After that, a new loan is issued to the student which contains the consolidated amount of all the old loans.

In case of the FFEL or Federal Family Education Loan Program, the borrower is provided with a new consolidation loan which can be used to pay off any loan that the student might have and not just educational loans.

Government Student Loan Repayment Plans

The government debt consolidation loan programs offer four different plans to the borrower, they are:

1. ICR or Income Contingent Repayment plan

2. Extended payment plan

3. Graduated payment plan and

4. Standard plan

Each plan provides the borrower with different features to meet the requirements of the individual. This provides flexibility which is a key factor in any debt consolidation program.

Consolidating your debts can help simplify your repayment process, as all of your existing loans may not have similar payment dates and terms. You pay back different types of loans with the help of one single loan. The amount that you would need to pay every month should be lower and the pay-back may also get stretched to ease the repayment process. At the end of it all, getting a government debt consolidation loan also increases the chances of paying back your loans on time.

READ MORE - Government Debt Consolidation Loans - Consolidate Your Federal Student Loan Debts

Wednesday, May 12, 2010

Understanding Student Loan Consolidation

Student loan consolidation is one of the most popular ways to get rid of the burden of student debt. While studying, taking student loans is a common way to deal with the rising costs of higher education. The drawback is that by the time a student graduates, he or she has a sizable student debt along with their degree.

Student debt consolidation is the most recommended course of action, particularly for students who have taken up a number of loans from a number of different lenders. Without a fixed interest rate, having to make multiple payments each month to cover student loans can be frustrating and confusing. A student loan consolidation program can be a boon for both parents and students when it comes to debt maintenance.

Why Consolidate Student Loans?

Under ordinary circumstances, a student may take out a number of different student loans at different times. This results in sizable student debts that need to be paid off within ten years using a monthly payment plan. Students who have taken out more than one loan will have to make multiple payments.

Student loan consolidation allows the student to combine all outstanding loans into one loan. This also means that the loan is with one lender with one set of monthly payments. While this greatly reduces the frustration of dealing with student debt, student debt consolidation program has a number of other benefits as well.

Lower Interest Rates, Lower Payments

A student loan consolidation offers a number of benefits that will ease a student's present financial stress and can help in saving money for the future. A student loan consolidation will lock your interest rates at a lowered level, thus allowing you to save money in the long run.

This kind of student loan consolidation program can also lower your monthly payment premiums apart from charging you with just one payment a month. Flexible repayment plans are also available, which can even extend your debt repayment period from 10 to 30 years, depending in the debt amount. Student debt consolidation programs do not require credit checks or co-signers, so you can avail this financial program even if your finances are stretched.

If you are a student and find that your student loans add up to over $7500, opting for a student loan consolidation is your best option. Especially for those who have taken loans from multiple lenders, a student loan consolidation can help clear up a frustrating and confusing mass of debts into one, easy loan that is paid off once a month. Using a student loan consolidation can help students deal with their debt in an efficient and easy way so they can focus on their future.

READ MORE - Understanding Student Loan Consolidation

Monday, May 10, 2010

School Loans Consolidation - What Forms to Expect

The term "school loans consolidation" refers to consolidating all your study loans into one single debt with a fixed rate of interest. Thus, in simple words, school loans consolidation makes life much easier for the borrower who otherwise needs to handle a complex network of credits with things getting more and more complex with further studies. The advantages of school loan consideration are:

Consolidation and streamlining of a number of loans into one single lump sum debt making the repayment process a hassle free one

• Transfer to a fixed rate of interest to one single creditor from a large and complex network of creditors with different due dates

• Reduction in the amount of total loan to be paid back

• Fixed rate of interest for the consolidated loan is smaller, hence reduction in the rate of interest

• Availability of various flexible schemes and consolidation plans for the borrowers to choose from

• Flexibility to the borrowers to switch from one plan to the other

The most common and popular types of School loans consolidation plans are:

• Standard Repayment Plan

• Graduated Repayment Plan

• Extended repayment Plan

• Contingent repayment Plan

The Standard Repayment Plan is the most economical and hence the most common. It is the plan that is assigned to the borrowers unless they ask for it to be changed. In this plan, a very low monthly minimum amount is fixed and thereafter the loan amount is divided into 120 installments to be paid each month for a period of ten years. In case there is no change in interest rates throughout this time, then your payment will be the same for these 10 years.

Graduated Repayment Plan is one in which you pay only the interest part in the beginning and thereafter go on to pay both the interest part as well as the principle part later on. Thus, this plan is very good if you are in current financial difficulty or earning less now but have a potential to increase your earnings later on. A point to note is the fact that this plan increases the total amount you have to pay.

In case you have a federal family education loan programmed and you still have unpaid principle and interest portions to the extent of $30,000, then you might as well go for the Extended Repayment Plan where you can extend the repayment time frame and pay lower fixed payments along with occasional higher payments as and when you can afford it. Thus the economies of the Standard plan get mixed with the advantages of an extended period from 10 to 25 years say. On the contrary, you might also pay the standard plan rate and finish it off in 10 years while paying lower amounts during times of financial crisis and emergency under this plan.

Lastly, the Income Contingent Plan available from the US Department of education is a variation of the above Extended repayment plan designed for students with a direct loan and based on their ability to pay annually. This plan is based on the amount of direct loan a student has, his/her gross income, no. of dependants, etc and offers a rate which is slightly lower than that of the Standard Plan with the period going up to 25 years at maximum.

Thus, the above are the most common and popular School loans consolidation Plans available to make your life simpler. Now that you know the details of each plan, you might as well get your loans consolidated according to the one that suits you the best.

READ MORE - School Loans Consolidation - What Forms to Expect

Sunday, May 9, 2010

Credit Card Debt Consolidation - How to Reduce Your Debt Burdens

Credit card debt consolidation is the best option for reducing credit card related debts through a monthly compensation of a fixed amount.

Though it is more of a short term answer to a much broader problem, credit card debt consolidation can without a doubt help get rid of your debts. The best thing to do is give it a try as you have nothing to lose.

It can also help you avoid persistent harassment by your creditors, a trigger of stress induced health complications. Credit card debt consolidation usually makes your combined credit balance much more manageable especially if you are provided with a lower interest rate.

On the other hand, if you hold multiple other credit accounts which are not part of the consolidation effort, it may take you some time to have all the accounts reduced to manageable levels.

It is quite typical to get an interest free credit period, when you pay for your shopping with your credit card instead of paying hard cash. As a consumer, you will have to make payments for the credit used on the card before this period ends.

Debt consolidation programs are basically repayment programs which consolidate most types of unsecured debts from major credit cards, to student, and personal loans. Interest rates on a debt consolidation loan normally averages about 17-23 percent. It is quite a large amount of interest which could exceed the amount you are currently paying on your debt.

If you seek to reduce your debt burden, bad credit debt consolidation may come in handy. It is quite effective for improving your credit scores. Do not let your bad credit history and excessive debt ruin your reputation and life. With a little help from our team of credit relief experts, you will be able to get your credit and finances back in shape.

Bad credit personal loans may just be the ideal solution to your credit problems. Credit card debt consolidation though effective, is not the sole solution to all your debt problems. Do more research to find the right program for your debt situation.

READ MORE - Credit Card Debt Consolidation - How to Reduce Your Debt Burdens

Student loan debt consolidation Why is it so important to study

Currently, it has never been more important is to get quality training, but unfortunately the cost of such a quality education have increased much faster than the rate of general inflation.

It seems there are fewer students who receive financial assistance through four or five years without any sort of college, which means that the student loan debt consolidation is more important than ever.

Exploring all optionsAvailable

When a student loan debt consolidation options, it is important to explore all the options and make sure you are getting the best deal.

There are a number of different programs for a variety of different students, and it is important for the benefit of all the programs taken for which you qualify.

First details of the Financial Aid Officer

A good starting point to search for the perfect student loan debt consolidation loan is the financial aid office at your school.

The staff of financial aid to college or university visit or have visited, programs should have all the information about the different types of debt consolidation loan for students and some tips for saving money when consolidating student loans.

A balance between the length ofLoans> and monthly payments

When it comes to student loan debt consolidation, it is important to try to pay the balance of the loan and one monthly affordable.

The length of a debt consolidation student loans can vary a bit ', only a few years to find student loan debt consolidation for stretching Decades.

While a longer repayment period is usually the result of a lower monthly payment debt consolidation loan student loans, many students extended payments uncomfortable for so long.

It 'important to choose the course to obtain a reduction of monthly payments affordable loan debt consolidation loan student, but can be equally important in order to get credit for students> Debt consolidation loan and paid with your life.

READ MORE - Student loan debt consolidation Why is it so important to study

Saturday, May 8, 2010

Student Loan Debt Consolidation - An Overview

There are a number of student loans and can be categorized into two main types: Federal Student Loans and Private Student Loans. The Federal student loans are disbursed through the US Department of Education's Federal Student Aid programs, and are the easiest to obtain. The private student loans are obtained from standard lending institutions and banks, among others. You can use both types of loans to fund your education, but when it comes to your Student Loan Debt Consolidation, never mix up the two together.

Start by consolidating your Federal student loans first. The benefits of student loan debt consolidation of your Federal loans is that:

o The rate of interest is lower

o It reduces your monthly payments as the term of loan repayment is increased to 30 years, depending on the loan balance

o The repayment is consolidated to a single check payment each month.

You are eligible to go for your student loan debt consolidation of your Federal loans when you are not enrolled in school any longer; you are actively repaying your loan or are in your six-month post-graduate grace period; you have a minimum loan amount of $10,000.

The reason why you should never mix up the Federal and private loans during student loan debt consolidation is that the interest on Federal loans is tax deductible; you can defer payments when you go back to school; and the loan is forgiven for certain types of service. Private students loans do not have these advantages as they are treated just as normal loans. Mixing up the Federal and private loans during student loan debt consolidation makes you lose all the benefits of the Federal loans consolidation.

Go for student loan debt consolidation to lower your debt burden, as once you have graduated you have to start paying back your loans.

READ MORE - Student Loan Debt Consolidation - An Overview

Friday, May 7, 2010

What is Student Loan Consolidation?

What does it mean to consolidate your student loans?

To consolidate your student loans means to take all of your various loans and give them to one company. One benefit of this is that, often, you can get a lower monthly rate.

Benefits:

Consolidating your student loans has other benefits. Listed below are a couple more of them:

-Only one payment: Consolidating simplifies your finances by allowing you to write only one check instead of several checks.

-Spend less: Find a lender that will charge you a lower monthly interest rate and let them consolidate your loans.

-Helps build credit: At the time you consolidate, your new lender will repay your previous loans and merge them to make 1 new one. Because your former loans were fully repaid, your history looks better which, consequently, improves your credit rating.

-Lock in interest rate: When you consolidate your interest rate is locked in. This protects you from future interest rate increases.

Consolidation loans are great because they are easy to get. You don't need to be employed or have collateral or a cosigner to consolidate your loans. You don't even need good credit!

The Problem With Consolidation:

There are usually disadvantages to every decision. Check out all the pros and cons of consolidation before you do it. Here are a couple disadvantages you may want to consider:

-Interest rates fall every now and then. If you have consolidated, you are stuck with one rate.

-Once you consolidate you cannot "unconsolidate".

-The consolidated loan will have new terms and conditions that your other loans didn't.

-If you choose to extend the life of the loan you will wind up spending more (in interest) than you would have.

Since we have reviewed the benefits and disadvantages of consolidating your student loans, you should find out if you are eligible for one. To be eligible for federal student loan consolidation, you must meet a couple requirements. You have to have at least ten thousand dollars. You must be graduated as well. Finally, you must repair any defaulted federal loans before you will be allowed to consolidate.

READ MORE - What is Student Loan Consolidation?

Thursday, May 6, 2010

Student Loan Consolidation Can Relieve Debt Stress

Have you just graduated from college and now are facing repayment of your student loans? One way to handle this debt after you have finished school is with student loan consolidation You may obtain a low interest rate loan at this time. Federal and private student loans can be combined into one low monthly payment. Loan consolidation can be a money saver and a time saver and constitutes good money management. This can also help your credit score so you will be able get credit in the future much easier.

By obtaining a student loan consolidation you will be able to save money while you pay off both private and federal loans at once..Because interest rates have hit record lows, your new monthly payments will be lower, thus making them easier to pay. The stress of repaying student loans can be reduced after graduation by getting all your loans put into one easy payment..Its a win win situation with a loan consolidation

The decision to reduce your student loan debt with a student loan consolidation may make your future outlook You need to research the information about student loan consoldation to get the greatest benefit from it.The worry can all be reduced with a loan consolidation and you will save money every month with a lower payment overall. Relieving your debt stress can open up doors by not having to worry about making many high rate loan payments. Go online and research your loan consolidation as soon as you can.

READ MORE - Student Loan Consolidation Can Relieve Debt Stress

Tuesday, May 4, 2010

Unsecured Bill Consolidation Loans

Bill consolidation loans are personal loans that are used to repay high interest credit card bills and any other high interest loans or bills. They are also referred to as debt consolidation loans. Many debtors opt for bill consolidation loans for repaying their outstanding credit card bill payments. Though, some debtors avoid going in for debt consolidation as it reflects on their credit history. Bill consolidation loans are of two types namely, secured and unsecured bill consolidation loans. Unsecured bill consolidation loans have a higher rate of interest due to the absence of any collateral.

Typically, bill consolidation loans generally combine all the outstanding debts into a single loan. The debtors are supposed to make a fixed monthly payment to the consolidating company. This payment is then distributed among various creditors. They find it more convenient to pay off one loan rather than paying all the bills individually.

There are various kinds of bill consolidation loans. Each loan is designed to suit various needs of debtors and their financial status. Debtors with a good credit rating can qualify for an unsecured personal debt consolidation loan. It is advisable to check the credit score before applying for this kind of loan. Higher credit scores can increase the chances of a debtor to qualify for a low interest loan.

Debtors can consult accredited credit counseling agencies to guide them to choose an appropriate debt program. The debt consolidating company will negotiate lower rates with the creditors for a small fee. A few non-profit agencies have the expertise to deal with debtors with six or more months of late payments.

Before deciding on any consolidating company, debtors must research and compare pay back dates, fees, and estimated monthly payments of various companies.

Unsecured loans require less time to process the loan because it involves less documentation. In most cases, a debtor is not asked to give a reason for applying for the loan. However, most consolidation companies set a limit on the amount that can be borrowed through an unsecured loan. Debtors, who wish to borrow beyond this amount, may have to go for a secured loan.

READ MORE - Unsecured Bill Consolidation Loans

Sunday, May 2, 2010

Tips to Private Students Loan Consolidation

The process of combining number of private student loans you own to a single loan with lower interest rates is known as private student's loan consolidation. This will help you to budget your finances more efficiently because you are free from the hassle of making a series of payments to individual private lenders.

Your monthly payments will be greatly reduced with an extended repayment schedule. In case your credit situation has improved, you are likely to get your consolidation rates much lower, on the other hand, there is no chance that your existing lenders will reduce their rates, thus by consolidating you can save more.

A borrower can apply for student consolidation on his own or with the help of a co signor with good credit standing and accordingly he will receive loans at good rates

The term of consolidation will vary with each student. Usually undergraduates will get a repayment period of 25 years whereas graduates might get up to 30 years. Either way, the monthly installments will be vastly reduced.

Most private loan consolidators also make it possible to repay in excess without charge, i.e. any surplus paid will go towards the principal amount. Those in the medical and dental fields stand to gain a bit more in that they get a 48 month deferment for payment and military personnel are eligible for the same for a period of 36 months.

One thing to remember is that private loans cannot be consolidated with federal loans. Your grace period or the time immediately after your graduation is the best time to consolidate your private loans because the rates of interest are lower mostly during this time.

Private loan consolidations are possible at fixed rates as well as at fluctuating rates, therefore you need to do some research on both to arrive at a conclusion as to which one would suit you the most.

READ MORE - Tips to Private Students Loan Consolidation