As soon as your bankruptcy has been discharged, you can apply for a home equity loan. However, expect to pay high interest rates for financing with such a low credit score. Waiting longer and practicing good credit habits will qualify you for the “A” list and better rates.
Two Years For The Best Rates
To get the best rates on a home equity loan, it takes at least two years of good credit choices to qualify for “A” loans. While waiting a couple of years can be difficult, it can save you thousands in interest costs.
You can begin rebuilding your credit by opening a credit card, using it, but not maxing out the account. Building up a cash reserve can also improve your credit score. Conventional lenders like to see at least three or more months of income saved.
Subprime Lenders An Early Possibility
You can qualify early for a home equity loan with a subprime lender. Subprime lenders deal with high risk loans, particularly those with poor credit. The longer you wait after your bankruptcy, even a few months, the better your rates will be with these financing companies.
As with any type of financing company, you should research subprime lenders before signing a contract. Rates can vary widely between companies. Request an APR quote on home equity loans to find the most reasonable rates and fees. Online sites make gathering these quotes a snap.
Home Equity Loan Options
Home equity loans come in a variety of financing packages, each with different rates and fees. A second mortgage offers the lowest rate, but high upfront costs. A line of credit can be opened with no or little cost, but rates are higher. Refinancing your entire mortgage to cash out your equity is also an option.
While a bankruptcy will stay on your credit report for seven to ten years, you can enjoy good credit in as little as two years. Each family has their own unique budget concerns, so there is no one best time to take out a home equity loan. Weigh your options carefully, and research lenders for the best deal.
Your credit score is derived from your credit history. However, when it comes to lending decisions, the two are not always interlinked.
Usually, the first thing a lender looks at in a credit report is your credit score. They will examine your credit report, including scores, from all three of the major credit reporting bureaus. Lenders will usually approve or deny you based on the middle of these three scores.
What happens if you're filing a joint application? In that case, lenders will look at each middle score for you and your co-applicant. Then, they take the lower of the two middle scores to base a lending decision against.
If your score is high enough, mortgage lenders will take a cursory glance at the rest of your report. If there aren't any major delinquencies, such as a bankruptcy, foreclosure, or judgment, then the chances of approval are good. A high-enough score is usually above 620. When you get into the 700-score range, you'll get even more preferential treatment.
But what happens if your score isn't high enough? At this point, a mortgage lender will closely examine each of your open accounts to establish an overall credit pattern. For example, if you had been late on your credit card payments 2 years ago, but have since paid them perfectly, it is regarded as favorable. If you have had perfect credit in the past but have been delinquent on your payments recently, you will need a perfect explanation to overcome that hurdle.
To take advantage of this behavior, you'll need some patience and diligence. Lenders will usually weigh the past 12 months of your credit the most. If they see 12 consecutive months of perfect payments for all your accounts, they will tend to overlook some of your previous delinquencies. They might also overlook your middle credit score if it's lower than 620. Of all the accounts they examine, they will examine your mortgage payment history with a microscope. When it comes to your mortgage payment history, they look at the last 24-36 months, not just the last 12.
Of course, if you have something major like a bankruptcy or foreclosure, you have more explaining to do.
Obtain a copy of your credit report from all three major credit bureaus. Make sure it contains your scores as well. Look over each of your accounts. Even if you know you've been late on a payment within the past year, it's not always reported that way on your credit report.
If all of your accounts have perfect payment history over the last 12 consecutive months, you're in very good shape. If you are showing as delinquent on any account, start your 12 month count from that point. For example, if you pull your credit report in July, and your last delinquent payment was in April, then you will start counting 12 months from May (assuming your May payment brought the account current). By the following May, if you've paid everything on time, you'll have a much better shot at approval.
If you need to obtain a mortgage now, you can usually secure an approval from a subprime lender. Sometimes, they are your only option. If you find yourself in this situation, you must resolve to pay every single account perfectly. After 12 months of doing so, you should be able to refinance with a conventional lender at a better interest rate. Some subprime lenders have sister companies that will make refinancing easier. These sister companies will usually have more lenient guidelines for current customers of the subprime lender. When applying to a subprime mortgage company, see if they have affiliated companies that offer this service.
Of course, the best way to secure a good mortgage without having to do the 12-month dance is to have the highest possible credit score. Again, make sure you obtain a copy of your credit reports with scores. Then, find a good book on how to raise your credit score and follow the guidelines. You might not have to wait 12 months after all.
One of the best ways to repair your bad credit is by refinancing your home mortgage. The difficult part is finding a lender for your home mortgage since your credit history is not good. Forget about the banks and other financial institutions, they will not probably accept your home mortgage. So how do we find a lender that does?
Well, the answer to that lies in subprime lenders. Most subprime lenders are willing to offer loans to people with bad credit history. However do note, it does vary from one lender to another and you may have to visit a few before finding one that does.
You can find subprime lenders on the internet, through your friends or the local business directory. Some lenders have acquaintances with other lenders and they can do a referral on your behalf.
Since subprime lenders are taking a high risk by refinancing your home mortgage, you may need to find a few before you find one that offers you the loan. Subprime lenders also have their own approval process not much different from banks and financial institutions. Your credit history, assets, gross income level, current debts etc are all taken into consideration when determining whether you qualified for the loan except that they have a higher threshold compared to banks and financial institutions.
They usually charge higher interest rates due to the higher risk they are taking, so even though you may pay more, in my opinion, the benefits of recovering from your bad credit outweighs the disadvantage of higher interest rates.
Do take note, this is a temporary solution as you still need your pay your monthly refinance on time. If not, you will be in a worse position. I recommend getting a refinance home mortgage loan more than what you currently owe so that you have some money to clear off your credit card debts, bills etc. That also helps in your credit repair efforts.
Ultimately, this method of credit repair still require you to manage your finances better. I would recommend to setup the refinance payments to automatically deduct from your salary every month. In this way, part of your salary goes towards repaying the refinance loan before you even have a chance to take out the money. Most banks can set it up for you free or you can use the internet banking system to do it.
Remember, the only way to repair your bad credit is to have good discipline with your finances.
Mortgages for those with adverse credit have advantages that conventional mortgages don’t. The prime advantage is that they are easier to qualify for, even with a bad credit history. Sub-prime mortgages also allow you to build wealth with your home purchase. And they have fewer hurdles, such as not requiring PMI.
Start Building Wealth
Bad credit mortgages allow you to start building equity wealth even if you have a bankruptcy or foreclosure in your past. With rates only a couple of points above conventional rates, you can get into a home with no or little down. For about the cost of a rent payment, you can enjoy tax deductions and home ownership.
Without waiting for your credit score to improve, you can buy a home at today’s prices. Even though no one knows for certain what prices will be in the next couple of years, more than likely they will be higher. You can see that appreciation by buying a home now.
Forgo Private Mortgage Insurance And Other Hurdles
Unlike conventional loans, you don’t have to carry private mortgage insurance with a sub-prime loan. So even with a down payment of less than 20%, you don’t have to worry about premium costs.
Sup-prime lenders are also more flexible with their requirements. Your cash assets, income, and credit scores can be less than favorable, but you can still get a mortgage. You can also choose more flexible loan terms of interest-only, jumbo, or adjustable rates.
Finding An Adverse Credit Mortgage
With more and more financing companies offering sub-prime lending, it’s easier than ever to find an adverse credit mortgage. A quick search online will yield hundreds of opportunities. Sifting through those results can produce some very favorable financing offers.
If you are overwhelmed with the choices, start with a mortgage broker. They sort through the plans to present you with the best selections. In some cases they also offer special deals, not found elsewhere.
Don’t worry about getting approved or not. Focus on getting the best rates and terms. Ask for loan quotes that include closing cost estimates to make comparisons. Also be willing to negotiate more favorable terms, especially to lower caps or fees.
You say you know where your money goes and you don’t need it all written down to keep up with it? I issue you this challenge. Keep track of every penny you spend for one month and I do mean every penny.
You will be shocked at what the itty-bitty expenses add up to. Take the total you spent on just one unnecessary item for the month, multiply it by 12 for months in a year and multiply the result by 5 to represent 5 years.
That is how much you could have saved AND drawn interest on in just five years. That, my friend, is the very reason all of us need a budget.
If we can get control of the small expenses that really don’t matter to the overall scheme of our lives, we can enjoy financial success.
The little things really do count. Cutting what you spend on lunch from five dollars a day to three dollars a day on every work day in a five day work week saves $10 a week… $40 a month… $480 a year… $2400 in five years….plus interest.
See what I mean… it really IS the little things and you still eat lunch everyday AND that was only one place to save money in your daily living without doing without one thing you really need. There are a lot of places to cut expenses if you look for them.
Set some specific long term and short term goals. There are no wrong answers here. If it’s important to you, then it’s important period.
If you want to be able to make a down payment on a house, start a college fund for your kids, buy a sports car, take a vacation to Aruba… anything… then that is your goal and your reason to get a handle on your financial situation now.
Answer these questions truthfully:
1.) Does your spouse or partner complain that you spend too much money?
2.) Are you surprised each month when your credit card bill arrives at how much more you charged than you thought you had?
3.) Do you have more shoes and clothes in your closet than you could ever possibly wear?
4.) Do you own every new gadget before it has time to collect dust on a retailer’s shelf?
5.) Do you buy things you didn’t know you wanted until you saw them on display in a store?
If you answered “yes” to any two of the above questions, you are an impulse spender and indulge yourself in retail therapy.
This is not a good thing. It will prevent you from saving for the important things like a house, a new car, a vacation or retirement. You must set some financial goals and resist spending money on items that really don’t matter in the long run.
Impulse spending will not only put a strain on your finances but your relationships, as well. To overcome the problem, the first thing to do is learn to separate your needs from your wants.
Advertisers blitz us hawking their products at us 24/7. The trick is to give yourself a cooling-off period before you buy anything that you have not planned for.
When you go shopping, make a list and take only enough cash to pay for what you have planned to buy. Leave your credit cards at home.
If you see something you think you really need, give yourself two weeks to decide if it is really something you need or something you can easily do without. By following this simple solution, you will mend your financial fences and your relationships.
A carpenter uses a set of house plans to build a house. If he didn’t the bathroom might get overlooked altogether.
Rocket Scientists would never begin construction on a new booster rocket without a detailed set of design specifications. Yet most of us go blindly out into the world without an inkling of an idea about finances and without any plan at all.
Not very smart of us, is it?
A money plan is called a budget and it is crucial to get us to our desired financial goals.
Without a plan we will drift without direction and end up marooned on a distant financial reef.
If you have a spouse or a significant other, you should make this budget together. Sit down and figure out what your joint financial goals are…long term and short term.
Then plan your route to get to those goals. Every journey begins with one step and the first step to attaining your goals is to make a realistic budget that both of you can live with.
A budget should never be a financial starvation diet. That won’t work for the long haul. Make reasonable allocations for food, clothing, shelter, utilities and insurance and set aside a reasonable amount for entertainment and the occasional luxury item. Savings should always come first before any spending.
Even a small amount saved will help you reach your long term and short term financial goals. You can find many budget forms on the internet. Just use any search engine you choose and type in “free budget forms”.
You’ll get lots of hits. Print one out and work on it with your spouse or significant other. Both of you will need to be happy with the final result and feel like it’s something you can stick to.
Millions of Americans are finding it hard to pay their bills and get out of debt. If you are having a hard time paying your bills and can not seem to catch with your debts then Debt Consolidation Loans is the right answer for all your debt problems.
Debt consolidation is the best option if you are in financial difficulty. Debt consolidation helps you get the help you need, almost immediately and can provide information on how a debt consolidation loan can make things easier for you and why it is important for you to have a good credit rating. Most of all Debt Consolidation Loans can help you avoid bankruptcy. The Debt Consolidation Loan will help you thru your unwanted monetary crisis and ensure your financial status and you will be able to reduce your debt faster and easily.
A debt consolidation loan can be an excellent tool to assist in the reduction of credit card debt. Consolidation loans carry interests’ rates far below those of credit cards. In the long run, a great deal of money can be conserved through the use of a personal loan. The time has never been better to apply due to the current low interest rates being offered by mortgage lenders. Credit cards, medical bills, and unsecured loans can all be combined into one monthly payment when you apply for a debt consolidation refinance loan.
A debt consolidation refinance can give you extra money each and every month, eliminate high interest rates on credit card debts and unsecured loans, and give you a fresh start on attaining your financial goals. You can also refinance your home in order to consolidate debts has tax advantages as well as lowering your monthly payments. You can roll all your debts into one low monthly payment and receive tax deductions on your refinanced mortgage. If you have overdue bills that never seem to get paid off and you feel as if there is no end in sight to the constant financial pressure and stress, a debt consolidation refinance loan is the perfect answer to your problems.
There is so much information available online regarding debt consolidation refinance loan. You just have to complete a short simple online application on the internet and you will be contacted by multiple lenders as soon, who can assist you with consolidating your high interest debts into one convenientArticle Search, low monthly payment the quotes are free and usually there will be no initial credits check. Multiple lenders who can assist you during each step of the refinancing process will contact you within hours after receiving your application. Simply review the offers and choose the lender that best suits your needs.
There are so many different advertisements and promotions from various consumer debt consolidation agencies that the choice can be overwhelming and you may be tempted to choose the first one you see. Choice is yours at the end and make a wise choice.
Credit card debt consolidation means taking all your dues and consolidating them in one monthly payment. With debt consolidation you don't need to manage payments individually. Beside of that, it will also cut down your interest payments, lower monthly payments, waive late fees, miscellaneous charges, improve your credit rate and help you to save money.
Credit card debt consolidation will be helpful for you if you know how to do it right way.
Here are some tips, which can be used as guidelines for credit card debt consolidation.
Basically, there are two types of credit card debt consolidation.
The first type is through a credit-counseling firm. Credit counseling firms will help you by consolidating all your monthly payments in a single payment and then separate this to creditors until you are debt free.
But you should be very careful while choosing your credit-counseling firm. Non-profitable credit counseling firms are not always right choice because they can be dishonestFree Articles, sometimes they can charge high fees and do very little to eliminate credit card debt.
The best way to select a right credit-counseling agency is to ask other people who have already gone through debt counseling.
Credit card debt consolidation through a home equity loan or other secured loan is the second type. This is done by exchanging a secured debt (a debt backed by specific assets such as real estate) for an unsecured debt (such as credit card debt). Always remember to take loan only from single creditor because it is easier to pay one creditor rater than multiple creditors.
Credit card debt consolidation will save money in long term and will make your life easier to pay credit card debt.
Are you having a difficult time sleeping because of your debts? Sleepless nights are just one of the effects that debt can cause. Soon, bouts of depression that can ultimately take over your life will follow. You might notice that your anxiety and stress levels skyrocket if your debts are piling up. If your financial situation is desperate, your sole option is to look for relief from debt consolidation companies. These are companies who specialize in reducing and eliminating debts. They offer services like lowering interest rates, plans of action, and advice on what debts you should pay off first.
Debt problems affect many people and nobody is immune to their problems. Even if you dont gamble or take measures to keep your finances safe, unexpected circumstances may still occur that may put you in debt, like divorce, or a life threatening illness that requires expensive treatment. Debt consolidation companies have tested plans in place to get you out of trouble. They are able to negotiate with creditors to reduce your overall interest rate or lower your monthly payments, allowing you to recover. Some debt consolidation companies offer loans to help their clients clear up their debts. This method allows you to pay your debts in full but requires you to pay a monthly loan payment to that company. Be sure to check that you will not be made to pay an unfair interest rate otherwise your back in the same depressing situation.
Be cautious in selecting the debt consolidation companies because every company have different methods and policies. Some charge a fee for serving you while others claim to be free. Be absolutely sure before committing yourself to any program. You should also be wary of debt consolidation companies in the internet, make sure that you are not being scammed before you commit. Being too trusting can be a costly blunder especially when you are seeking aid from a website. To be absolutely sureFind Article, check with the Better Business Bureau before signing on a deal with debt consolidation companies. They will confirm if that company is genuine or if they are just out for you money.
Debt consolidation, for many people, can bring a huge bring a massive sense of relief. By consolidating debt, you can eliminate or reduce collectors' calls and letters, as well as just being able to feel more secure.Being responsible for one loan repayment rather than having many bills to pay can be easier to manage and reduce the risk of missing payments. With a debt consolidation loan, by clearing your existing liabilities with your creditors, it is even possible that you can improve your credit score.
Consolidation Loan Offers Flexibility
A consolidation loan also offers you some flexibility in how you will handle the debt. If the loan is taken out at the right time, you could potentially benefit from having one month without a debt repayment. Effectively, you get the loan one month and use it straight away to pay off all of your creditors. As you may not have to start paying the loan until the following month, you could end up with a repayment holiday which will give you some time to build up a cushion in your bank account.
Debt Management Plans
If you have not sourced a consolidation loan and opted instead to go with a credit counselling service and had them form a debt management plan with you, this can help you to keep your finances more under control, as well as providing you with just the one amount to repay.
Individual Voluntary Arrangement
Often the monthly sum that you pay is lower than the sum of the bills you paid previously, because the credit counselling service has managed to have your charges reduced in some way. With certain schemes such as Individual Voluntary Arrangements creditors agree to stop charging interest while you are in the plan.
A debt management program may actually negatively affect your credit rating temporarily, but once all of your debts have been paid off, your credit score should go up.
You may find that subscribing to a formal debt management plan is advantageous for you as it will help you to develop better spending habits as you will not be able to use credit whilst the plan is in force. Credit counselling services usually should take the time to learn about you and your needs, so that they can help you form a good plan for getting out of debt.
Another advantage to dealing through a credit counselling service is that someone else negotiates with your creditors for you. Many people find the idea of calling their creditors intimidating, and it can be very daunting.
The main advantage to either form of debt consolidation, borrowing or using a service, is peace of mind. Debt can be very stressful, but knowing you have a plan and are following it can make your finances much easier to face and handle.
If you have a number of outstanding student loans, you may want to consider student loan debt consolidation. You will eliminate having many bills to pay on your student loans, and the total monthly payments can be significantly reduced as compared to the normal ten year payback option. A special program called FFEL (Federal Family Education Loan Program) allows commercial institutions, such as credit union, banks and other lenders to grant debt consolidation loans for the purpose of consolidating educational debt. In addition, the William D. Ford Federal Direct Loan Program allows for the federal government to grant student debt consolidation loans.
The majority of federal education loans can be included in these programs, whether or not they are loans that have been subsidized by the government. These include the FFEL Stafford loans, Health Education Assistance Loans, Federal Nursing Loans, Federal Perkins Loans and SLS. Note that private education loans are not eligible for the debt consolidation programs.
If you need to find out whether your loan is eligible for a student loan debt consolidation, you should contact the appropriate Direct Loan Origination Center, Loan Consolidation Department. For instance, if you have a FFEL loan, contact a participating FFEL lender if you are interested in consolidating a FFEL loan.
You can apply for an educational debt consolidation loan even while you are still in school, as well as once you have graduated, left school without graduating, or reduced your student hours to half time enrollment or below. If you have all of your student loans with one FFEL lender, you have to obtain your student consolidation loan from that same FFEL lender, except in the cases where the terms of an income sensitive loan are unacceptable. If you want to be considered for the William D. Ford "Direct Student Loan Debt Consolidation Loan", you have to already have a Stafford student loan (subsidized or unsubsidized) that will be included in the loan consolidation, or have at least one FFEL program Stafford loan to be included in it. Again, this can be subsidized or unsubsidized.
How do you go about choosing an unsecured debt consolidation program? The first step to take is to meet with a professional to advise you. He or she may be called a debt relief specialist, settlement specialist or client services representative. This person will answer your questions about the loan. The main thing about a debt consolidation loan is that it is intended to assist you, not make things better for your creditors. The company you are working with will handle the negotiations; they are all finance and debt professionals. This may not be the program for you, but it is worth looking at, and there are many unsecured debt consolidation programs that you can find out about, either by calling or by checking online.
You've probable heard that bankruptcy brings great relief to those who are deeply in debt and can no longer meet their financial responsibilities. It is also commonly said that when one goes bankruptcy debts are discharged. However, not all debts are dis-chargeable and in certain cases, bankruptcy actually stands far away from being a solution to debt problems.
Student debt and "undue hardship"
If you are buried deep in debt but your debt is mainly student debt you may want to reconsider bankruptcy since almost all student loans are non-dischargeable. The law is clear when it comes to student loan debt: Unless repayment causes the debtor undue hardship, courts wont allow discharge of student debt. The above is applicable to Chapter 7 Bankruptcy and Chapter 13 Bankruptcy too. So in order to be able to get discharged from student debt you'll need to meet the "undue hardship" requirement. This concept implies an excessive poorness caused by the debt that would affect the ability of the debtor of paying for basic needs. The main difficulty is to prove undue hardship.
A bit of history
Student Debt used to be more easily discharged in the past. However, due to abuse, Bankruptcy's legal requirements were modified and now it is extremely difficult to get discharged. The abuse consisted on filing for bankruptcy immediately after finishing college, thus getting discharged of their student debt prior to joining the workforce. When this practice became common, lenders complained and got the administration to modify the rules that controlled bankruptcy.
Discharging Nowadays
Currently, the exception of hardship includes government loans and nonprofit organization loans. So it has become even more difficult to get student debt discharged. Besides, not only has the debt to disrupt the debtor ability to maintain an adequate minimal standard of living but the debtor must have tried by every possible way to repay the debt.
Co-signer Responsibility
Even if the debtor meets all this requirements, any co-signer who subscribed the loan with the debtor wont be covered by the hardship exception and thus will be the sole responsible one for the debt repayment. This is one of the lenders main securities and explains why most of the Student loan lenders require a co-signer in order to grant a loan.
Final considerations
Filling for bankruptcy or not is a decision that has to be intensively meditated and must be substantiated in the need of a fresh new start when there is no other choice. If a bankruptcy wont discharge your student debt, and if your student loans are the main constituent of your debt, then it makes no sense to suffer all the bad consequences associated with a bankruptcy without being able to enjoy the benefits.
However, if your income is too low, your debt wont let you even breath and there is no other way of recovering from this situation, you may be able to convince a court that due to the excessive burden your debt has turned into, it should be discharged. That way, you'll be able to get a fresh start and become debt free.
Frequent use of credit cards is cited as main culprit of debt accumulation problems people face world over. Taking this in account, now numerous companies are in the business of providing credit card debt consolidation loans so that all debts are merged under one lender and debt burden is reduced to the relief of the holder.
Debt consolidation is a simple method. The credit card holder takes a fresh loan of at least equal to the amount of debts and pays off debts immediately. Thus he saves himself from paying high interest rate and high penalties of the cards bill and saves lot of money, though debts remain the same as they are shifted under one new lender. Now instead of paying installments to different lenders, the credit card holder pays installments to only one lender thereby reducing outgo towards installments.
The main advantage of credit card debt consolidation loans is that it is always availed at lower interest rate as compared to very high interest rates charged on loans by the issuing companies. Thus the loan enables in saving lot of money of the card holder. The debt consolidation loan thus saves you from those high penalties the credit card company levies on late payments. If you use numbers of credit cards then the debt consolidation is especially useful to you.
You can choose secured or unsecured debt consolidation loans for paying off credit card debts. The secured loan is given against credit card holders property placed as collateral with the lender. You can borrow larger amount at lower interest rate for larger repayment duration under the secured option. This enables in convenient pay off of greater debts. The unsecured option is especially useful in case smaller debts are to be paid off. A little higher interest rate, smaller amount and shorter repayment duration are slight disadvantages associated with the unsecured loan. Bad credit will not come in way of secured credit card debt consolidation loan as the lender has already secured the loan. To counter bad credit in case of unsecured loan, the loan seeker should satisfy lender by showing adequate repayment capacity and a sound repayment plan.
Prefer applying online for credit debt consolidation. This is a convenient of availing the loan at low cost. Search various websites of online lenders and compare their interest rates and terms-conditions and apply to the lender having easier terms.
This type of loans are perfectly designed for clearing high interest rate of the debts as the loan is offered at lower interest rate and low cost. Before settling for the loan deal, take note of advantages and pitfalls of the loan. Make sure that you pay off monthly installments in time in order to avoid any debt trap.
There are a lot of businesses that run into financial trouble and turn to financial advisors to help develop a business debt and loan consolidation plan. As with a personal debt consolidation plan, the key to having success with a business debt consolidation plan is to stay with it until you have your finances back on track. If you havent already done so, you need to ensure that you take some extra steps to give your business debt consolidation plan the best chance to succeed. Some of these steps may seem a bit much, but if you want to save your business from going bankrupt youll need to make some difficult decisions.
The first step in any business debt consolidation plan is to assess just hoe many of your outgoings are essential to the business. The most important part of any business debt consolidation plan is to realise that you are going to have to cut back severely on your expenses to get your books out of the red and back into the black. Take a careful look at your levels of staffing. You should have already discussed the financial situation with your staff and informed them that you are going to be forming a business debt consolidation plan. Obviously, the staff will then realise that there are going to have to be some cutbacks, or a reduction in pay to give the business debt consolidation plan any chance of success. You may find that some of your staff decides to leave of their own volition which will have a positive effect on your business debt consolidation plans.
Dont be tempted to try to replace every member of staff who decides to leave upon hearing of your business debt consolidation plan but give the remaining staff the option to take on more duties or longer working hours. If you explain the business debt consolidation plan to your most trusted staff members they may agree to work extra hours for less money, simply to help you focus on your business debt consolidation plan. This will not last forever, but it is a good place to start. You can always reward your staff once you have got your business debt consolidation plan underway. You may discover that you need to cut the hours of all of your paid staff to cope with the reduction in finances that you will have available whilst you are working on your business debt consolidation plan and this is where you are going to have to put in the extra effort yourself.
Is your business house suffering from hard times? The risk is an inseparable part of any sort of business and even there is no surety that it will work. It is not merely a result of toil of a single individual; in fact, it is a blend of efforts of a lot of people. These days, business has become an art rather than a science. Even for starting up any sort of business, you need funds from some external source. And after all such arrangements if your business proves to be a failure, then who is responsible. Well, to cope with all kind of after affects, there are commercial debt financing. Here we will discuss how commercial debt financing works to improve your debt ridden situation.
A grim reality is that commercial debts are hard to repay. The cause for this is that the operations suffer impediment due to lack of finances. This gives rise to higher rate of interest and extended repayment period. If you apply for commercial debt financing, you can avail more than one benefits of it. Apart from urgent requirement for your business, commercial debt financing offers you a sound piece of advice and many other ways to consolidate your debts. Thus, it offers with long term solution of all your requirements.
Debt Consolidation and Loan Review Information site can help you research your options to face the commercial debt. It is basically limited and with its help you can settle your entire debt. Moreover, you will not have to be embarrassed. These are secured in nature and render all the benefits of such loans. The lender while issuing commercial debt financing may take in to account your current income level, state of your business, and the worth of collateral that you are going to offer.
You can make benefit from best deals by exploring online sources. It facilitates you with various lenders at one place. Make use of commercial debt financing and take your business at the right track.
Credit cards are the safest way to make payments, which carry no risk of theft or anything else. To avoid credit card debt you are advised to make payment before statement date. If you are already under the threat of credit card debt then you are recommended to take credit card debt consolidation loan to consolidate credit card debt.
Here are some best methods for credit card debt consolidation.
You can apply for credit card debt consolidation through Internet or by applying to your local creditors. Both secured and unsecured forms of Credit card debt consolidation are available in market to choose from, it will be better to take an unsecured loan because a miss payment may lead you lose your security.
For credit card debt consolidation you should take loan from a single creditor because it is easy to pay to a single creditor than to pay to multiple creditors.
With credit card debt consolidation you can get better rates as your new creditor will offer you easy terms with lower monthly installments and lower interest rates.
You can make your life simple with credit card debt consolidation by paying one bill per month, which will cut a lot of stress and bill paying time.
If you are unable to take credit card debt consolidation loan at your desired low interest rates then you can borrow needed money from your life insurance policy to eliminate credit card debt.
Of course, the best method to consolidate credit card debt is to minimize the use of credit card, which is in debt, and to transfer the balance to a lower or zero interest credit card.
Credit card debt help is usually available for both personal and business debt problems at most financial services.
A fiscal situation wherein you are under a lot of debts from a lot of lenders can be quite an ordeal. Such a necessary and natural thing as taking loans can become a problematic situation. Instead of fulfilling your dreams and being happy with your plans, you may have to start worrying about how to dispose off your debts that you owe to several lenders. Multiple debts only compound your tension. Debt consolidation loans are customized packages meant for exactly such a scenario.
It is a usual situation that when you have taken loans from many lenders, you are under pressure to pay them off one by one under different terms and conditions and at different rates of interest. This is not an easy situation because of the sheer problem of managing these debts.
For such a scenario, there is a scheme called debt consolidation loan. Debt consolidation loans can help you out in several ways. These loans are meant to consolidate your multiple loans into one. This can also help you reduce your interest rate as chargeable on your loan.
Debt consolidation loan are of two types: secured and unsecured. Secured debt consolidation loans would require you to place a collateral. It thereby brings down your interest rate and at the same time, gives you good amount of cash into your account with easy repayment terms and conditions. In fact, many borrowers prefer to go for secured consolidation loans because it gives them the elbow space to bargain for better quotes to come out of the debt-ridden situation.
The unsecured variety available in debt consolidation helps you get a loan without the need of collateral. But then, the price to pay is: a higher rate of interest and not-so-flexible repayment options.
Debt consolidation loans is a viable option for anyone seeking to get over the tension of repaying many lenders with differing interest rates at different installment dates. What more, in the process, you can keep your credit report clean.
Are your monthly bills piling up so high that you need an oxygen canister to climb to the top? If youre anticipating being unable to make payments as they come due, take heart - theres a way out. In case you havent yet heard of debt consolidation, is a single loan that is used to pay off all or most of your existing creditors. Debt consolidation can help your financial position in these ways:
1. Payments on your debt consolidation loan total should be lower than your current payments.
2. The interest rate should be lower than what you pay now. But be sure to factor in any late fees youre now paying.
3. It gets your creditors off your back - for a while, anyway. Your debt consolidator will eventually come after you if you fail to repay your new loan.
The first step you need to take is to obtain a debt consolidation quote. These are available for free both on and off the Internet. There are many options - credit repair firms, specialized debt consolidation firms, banks, and credit unions among them.
Check out all the options and get free quotes from more than one. Dont simply accept the lowest bid - consider the following:
Investigate their reputation - Dont even consider a company with a web presence but no physical address, or one that has either not joined the BBB or has a bad BBB record. If you can find a company nearby, visit them in person. If not, then at least speak with a representative by telephone.
Find a company that will negotiate with your creditors - that way you end up with a lower loan principal.
Once you have checked all the institutions that have offered you quotes, choose the one you want to go with after evaluating them based on the above factors. And remember, however you got into your mountain of debt, stop doing whatever it is that got you in this mess in the first place!
It’s not uncommon these days for home owners to have more than one mortgage on their property. When they took out their second mortgage it may of seemed like a great idea, however these extra payments each month can be very difficult to handle.
Many people will look to refinance their loan so that they can combine their first and second mortgages into one easy to handle package. By doing this, many people think that it’s possible to get the great interest rate that they get on their first mortgage.
However it may be better for most people if they just refinance their second mortgage, this may be the best option available.
So why should you refinance a home loan?
Well it can be very sensible to refinance your home loan as it should help you to reduce the amount you will have to repay each month. There are a number of different things that you can do by refinancing a loan.
If you enjoy a low interest rate on your first mortgage then you shouldn’t necessarily look at combining both mortgages as it could put the cost of the first mortgage up. It’s better to just look at refinancing the second mortgage.
Goals that you can have for refinancing your loan you can:
Lowering the interest rate
Lowering the length of the loan
Reducing the total amount of money you will pay for the loan.
Normally, the cost of refinancing any home equity loan is minimal, if not zero. However if you remortgage your first mortgage it can cost between 2 and 4%, where as second mortgages normally cost very little at all.
So how can you find the right loan for you?
Well that completely depends, notice I’ve said the right loan, not the cheapest. Every loan is different, cheapest isn’t necessarily the best! Normally the best place to start looking for a loan is the company that already has your mortgage.
It is often the easiest route to refinance with your existing company, in many cases it’s possible for the loan company to refinance your loan without any costs or paperwork.
I’m not suggesting that you don’t look elsewhere for your loan of course, it’s vital that you shop around for a loan. Even if you plan to stay with your existing lender you should look around so that you can be armed with figures when negotiating.
Negotiating on home finance is defiantly possible, you will find that most packages are unique for the person, and so many companies will happily match another lenders offer.
Shopping around for a loan is possible, and you should be able to find yourself a great deal.
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You may be struggling under the weight of a high debt burden and wondering if you will need to downsize your lifestyle by moving to a cheaper neighborhood. Before you take your children out of a good school, why not consider the option of a personal debt consolidation loan? By consolidating all non-mortgage debts into one lower interest loan, your monthly debt repayment costs will be dramatically lowered, freeing up money for other things.
There are a number of benefits to using a personal debt consolidation loan to consolidate debt. These include:
OVERALL LOWER COSTS. When you are struggling to pay bills and just get by every week, the impact of high interest rates over a long period of time can easily be ignored. However, if you spend tens of thousands of dollars on interest costs over a decade that is money you could not have used to build your wealth, even if you wanted to.
ONE, LOWER MONTHLY REPAYMENT. This is the benefit that will give you immediate relief from financial pressure. Firstly, you won’t have the stress of trying to find the money for the many debt payments you were juggling. Depending on your current loan amounts and the interest rates being charged on them, you can save a good amount or a substantial amount by combining all your loans into one personal debt consolidation loan. Secondly, you won’t have the stress of having to make a number of payments every month on different dates. It can be difficult to manage the payments and easy to miss a date leading to late payment fees and penalties.
A SET PAYMENT AND SET TIME. A personal debt consolidation loan has set monthly payments that do not alter so you know exactly where you stand. The loan will also be fully paid out at the end of the term. This helps you to manage your finances better and also provides the assurance that you will be debt free at the end of it.
LOWERS STRESS. Modern life is stressful enough without serious financial pressure thrown in. It has been found that high stress levels are linked to diabetes, heart disease, cancer and hormonal imbalances. These health effects can place even more stress on you and so the cycle continues. If debt is the main cause of your stress, you can break the stress cycle with a decision. A personal debt consolidation loan can lower your overall stress levels substantially and your health will probably start improving straight away. And the side effects are all positive!
So before you uproot your family and settle in a less salubrious neighborhood, seriously consider the option of using a personal debt consolidation loan to improve your financial position. It may be a more palatable solution to your debt problems.
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Loans are innumerable and are equipped with sound financial assistance for borrowers. Everyday a large number of borrowers are benefited with the help of loans. Bad debt personal loan is an instance in point which is widely gaining popularity in the loan market of UK for offering sound opportunities to persons in quest of financial assistance.
Bad debt personal loans as the name imply mainly aims to satisfy the need of persons having bad credit. It offers them financial assistance in the form of a good amount of money. Thus, these loans are truly the best choice for all who once failed to repay their loaned amount on time and has been tagged as bad credit holders.
Bad debt personal loans can be accessed in to two types namely secured and unsecured loans. Secured bad debt needs any of your security to be placed as security for the loaned amount. Whereas unsecured bad debt need no such security and here lender alone bears the risk.
As these loans are meant for bad credit holders, it comes with higher rate of interest. Compared to any general secured loan in the market, bad debt loans offer small repayment period and less amount of money. Still, the facilities offered in these loans are quite suitable for a bad credit holder.
You can use bad debt personal loans for any of your personal needs. You can even use these loans to consolidate your unpaid debts. And by repaying the loaned amount within proper time frame, you get the flexibility to improve your bad credit score. In this way, these loans are surely a nice choice for all persons having bad credit.
You can access bad debt personal loans from banks, loan lending organization, financial institutions etc. At the same time you can access these loans from World Wide Web. It is the fastest way to meet unlimited lenders of your choice. Moreover here you get a chance to access free loan quotes. And with the help of loan calculators, comparison tools; you can easily compare the loan quotes. In this way, you can get the best possible offer regarding bad debt personal loan from the loan market.
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The importance of debt consolidation loans can be best understood by people who are suffering with bad credit history. Debt consolidation loans for people with bad credit provides a manner in which they can prevent their financial condition and credit status from further deteriorating.
A debt consolidation loan replaces several small and big debts that a particular person might have incurred. Under this arrangement, a single loan is used to repay all debts of the borrower. Since the loan taken at this instance is not immediately repayable, borrowers get enough time to prepare for repayment.
Borrowers are referred to as bad credit when they have defaulted on debts in the past. Mortgage arrears, County Court Judgements, Individual Voluntary Arrangements, all count towards tarnishing the borrowers’ credit history. Credit history of borrowers is referred to in order to get data about the credibility that a borrower enjoys. A bad credit history would thus imply that the borrower has lesser credibility and thus make him a bad case for debt consolidation loans.
This however is not so. Borrowers with bad credit history are also considered for debt consolidation loans. The logic behind this is that by taking debt consolidation loan, the borrower with bad credit history is making positive efforts to change his/ her credit status. Thus, debt consolidation loan is readily available to people with bad credit history.
A slightly higher interest payment is what you are required to make on the debt consolidation loan if you have a bad credit history. You however need to distinguish between lenders who are charging the justifiable rates of interest and those who aren’t. The task is not as difficult. Just see what other lenders are offering to borrowers with similar circumstances. If that is not enough, you can request a select group of lenders to send their debt consolidation loan quote. The quote provides information about the rate of interest that will be charged, the period for which the loan will be offered and other important terms on which the loan will be granted. It is certain that on comparison, a few quotes will be rejected and some will be selected for further screening through several processes.
Once a debt consolidation loan provider is selected, the process of eliminating debts is initiated. The first step in any debt settlement process will be to make a list of the debts. The list must be as exhaustive as possible so that all debts are included.
The list of debts with the persons to whom each debt is due and the interest rate that each carries will be supplied to the loan provider. Debt consolidation loans have a special feature that borrowers are guided in the debt settlement process. The guiding principle of every debt settlement process is to save maximum for the debtor. Only through a proper negotiation can creditors be forced to write off a particular debt or a part of it. Borrowers do not have the necessary time and skills to make this happen. Thus, the service of the debt consolidation loan provider becomes necessary.
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If debt consolidation loan is gaining popularity day by day, there have been valid reasons for that. There are millions of people all over the world who have themselves in the deep ocean of debts. Who does not want to enhance his standard of living? However, the problem starts when people try to enhance the same through various kinds of debts, and an un-thoughtful approach towards borrowing put them in a very difficult situation. They find themselves unable to manage their debts and pay it off. This is where debt consolidation loan comes at their rescue. It does not only help them manage and pay off their debts but it also shows them the path so that they could get their finances back on track.
A Prudent Step Towards Debt Relief
When you choose to go for a debt consolidation loan, you simply open the gateway of ultimate financial freedom for you. You get a chance to pay off all your debts on much easier terms. Thus, if your debts have become unmanageable and you are looking out for a way not only to manage the same but to pay it off as soon as possible, do not hesitate going for the free debt consolidation help. You will be happy to know that the debt consolidation services can help you get rid of all the debts in less than five years.
Applying for a debt consolidation loan is now very easy, as you can even apply for the same online – right from the comfort of your home or office. All you need to do is to do a thorough research and choose the debt consolidation company that offers you a debt management program based on your specific financial requirements.
You can ease the loan burden by getting debt consolidation loan easily available on the web. You can look for cost free online debt consolidation quotes from major companies offering debt consolidation and debt elimination services. These companies provide help by offering to merge all loans and credit card bill dues into one affordable loan. The greatest advantage of getting the debt consolidation services is that you avail an opportunity to pay your debts easily while can also work to reorganize your finances so that you could put the same back on track.
The main objective of debt consolidation loan is to help people along the road to a better financial status. Therefore, make sure that you choose wisely and keep up with the payments on the consolidation loan to obtain a good credit rating .
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Perhaps you have seen a television commercial or billboard advertising super low mortgage interest rates. If you have good credit, you are likely a good candidate for such loan programs. On the other hand, if your credit score is low, obtaining a prime loan rate is not very feasible. In this case, a subprime loan is the best option.
Subprime vs. Prime Mortgage Loans
Individuals familiar with home loans are likely aware of two loan programs. Those with a good credit rating will generally qualify for prime loan rates. Moreover, homebuyers who have cash for a down payment and closing costs will also qualify for prime rates. If your home buying situation is slightly different, you may qualify for a subprime loan.
What Are Subprime Mortgage Loans?
Subprime mortgage loans are primarily offered to individuals with low credit scores. These persons do not qualify for traditional financing. Mortgage companies and other financial lending institutions have exact lending requirements. If an applicant does not fit their criteria, the loan application is denied.
While getting approved for a mortgage loan with bad credit is a major feature of subprime loans, there is one main drawback to subprime loans. Because large portions of the loans are granted to individuals with poor credit, the odds of these loans defaulting are high. Because of this, most subprime loans have a higher interest rate. Of course, rates depend on credit. Applicants with fair credit may get approved for comparable rates, whereas those with extremely low credit scores can expect rates with a two or three point increase.
How to Choose a Subprime Mortgage Loan Lender?
Some lenders specialize in subprime loans. Furthermore, many traditional mortgage companies have begun offering subprime loans. The fastest and easiest way to locate a reputable subprime lender is through a mortgage broker.
Everyone's situation varies. Some bad credit applicants have funds for a down payment and closing, whereas some prime applicants do not have extra money to cover these costs. A mortgage broker is able to find the best loan program for your situation.
To begin, applicants will need to submit a quote request. You must include information such as income, credit rating, home price, etc. Based on your profile information, lenders will compete for your business and submit detail quotes. Thus, you are able to review mortgage rates and terms before choosing a loan package.If you are overwhelmed by debt, there are options you can take that will help you pay off what you owe without the stigma of filing for bankruptcy. We’ll examine four ways you can get your debt under control and start working back on the road to financial recovery.
1. Contact your credit card companies. Ask each credit card company for help. They aren’t likely to forgive you your loan, but they may be willing to reduce your interest rate. If your interest rate is currently 12% or more, ask if they would be willing to cut their rate in half. Why would they consider doing this? Well, creditors do not want you to default on your loan and they want their principle back. Sure, a nice fat interest charge would be ideal too, but if they sense you are ready to default on your loan, you can expect that a lower rate will be offered instead.
2. Consider a debt consolidation loan. You can pull all of your debt together into one account, preferably one featuring a fixed, low interest rate. You can use the proceeds from the loan to pay back your other creditors and then make monthly payments back to the loan consolidator.
3. Home refinancing. Refinancing your loan may be just the debt reduction help you need as the funds saved by you each month with lower mortgage payments could be used to pay off other debt. Caution: you are placing your home “at risk” if you opt for this choice.
4. Visit a credit counselor. There are credit counseling companies who help consumers by offering debt reduction plans to tackle debt. Essentially the way this works is that you will meet with an advisor and lay out a plan to repay your loans. The counselor will negotiate with lenders on your behalf for the lower rate which, in turn, will reduce your monthly payments as well as keep your credit rating intact. Credit counselors work for private companies as well as for government agencies or nonprofit firms. Be careful: a lot of what these people do you can do on your own. Read the fine print to make sure you understand any fees involved; make sure that your credit rating is not adversely affected too.
Don’t despair if you are well over your head in debt. Recent changes in U.S. bankruptcy laws have made filing for personal bankruptcy a less attractive option for consumers. Still, if it is your only resort visit an attorney specializing in personal bankruptcy to learn what your options are. Do not be bullied by anyone to make a decision that you will regret later.
If you are struggling with debt, you will benefit from credit counseling. A credit counselor can show you ways in order to overcome your debt through self-help or professional means. They can survey your situation and help you come up with the best solution for you and your circumstances.
Debt management at a credit counseling agency can be quite helpful. They will be able to let you know if a debt management plan is right for you and get you through that process. Most credit counseling agencies can counsel you on how to handle your debt problems on your own, if that is what is right for you.
A credit counseling agency can do more than sign you up for a debt management plan. They can also show you how to prevent future debt problems by living on your income. They can show you how to save to prevent having to put emergency purchases on your credit card. The credit counselor can help you come up with a budget that allows you to pay all your bills but also have a reasonable amount set aside for entertainment and other purposes.
If you are having trouble paying your credit card debt, an accredited credit counselor at the credit counseling agency might advise you to sign up with the debt management plan. This plan will allow you to pay off your debt in a few years. The debt management plan can save you in interest and other fees, as well as provide structure for your repayment. You will be able to pay in one payment which will then be applied to your various accounts.
Talk to an accredited credit counselor if you think a debt management plan might be right for you. They will be able to work through your various options available to allow you to become debt free.
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Next to winning the lottery, a debt consolidation loan is a debtor’s dream. With one monthly payment and a fixed monthly payment schedule, you can actually see an end to those monthly payments.
In reality, consolidating bills isn’t always easy. If you have a lot of debt, it can be hard to find a consolidation loan at a lower interest rate. And if you’re not careful, you can end up deeper in debt than when you started.
Your goal in consolidating your debt should be to lower your overall costs. To accomplish this there are two things to keep in mind:
1. Get the lowest interest rate possible
2. Have a plan to pay off your debts in 3 – 5 years.
Here are some of the best ways to consolidate:
Using Credit Cards
The good news about this method is that with a good credit rating, you may get a much lower rate than other forms of consolidation loans. And since credit card issuers don’t require collateral, you aren’t “risking the farm.”
Call your current issuer to ask what interest rates they will offer you if you transfer balances from other cards over to theirs. Go for a fixed rate if you can get it, and ask them to waive any transfer fees. If you can’t negotiate a low rate with your current issuer, try shopping for a new card at a site such as CardRatings.com. But be careful! Too many applications for credit in a short period of time can hurt your credit rating.
Once you do consolidate this way, be sure to set up an optimal payment plan so you can be debt-free in 3 – 5 years.
Home Equity Loans
With a home equity loan, you borrow against the value of you home, minus any other mortgages. The two major kinds are:
1. A Home Equity Loan – a fixed amount of money for a fixed period of time (sometimes at a fixed rate) and
2. A “Home Equity Line of Credit” where you borrow up to a pre-approved credit limit (interest rates usually variable) and can borrow again if you still have money available.
These loans can offer attractive rates, low payments, and the interest is usually tax-deductible if you itemize.
Many issuers offer no or low closing costs for these loans. Interest rates are often variable, however, and there’s always the risk that you can lose your home if you can’t pay.
Cash Out Refinance
Refinancing your home and taking out money to pay off bills (called “cash-out refinance”) is yet another way to tap the equity in your home. If you can refinance at a substantially lower interest rate, you’ll eliminate the high interest costs of the debts you pay off, and you could even come out with a lower payment than you have right now since rates are so low.
One option to consider: an interest-only loan. By lowering your monthly payment, you can free up money to use toward paying down other high-rate debt or building a retirement fund.
Make sure you understand the total cost of refinancing. Take any money you’ve freed up by paying off other bills and use that to create an emergency savings fund.
Traditional Debt Consolidation Loans
A debt consolidation loan is an unsecured personal loan, and the only collateral you are offering for the lender’s security is you. Because lenders consider them risky loans, they’re usually more expensive and not always easy to get if you have a lot of debt.
If the interest rate is too high to make it worth it and the repayment term is ten or fifteen years, you should probably consider another method of consolidation. However, if the term and interest rate are right, this can be a great way to actually save money in the end. (Check Bankrate.com for current averages). Remember, to calculate the total cost of the loan from start to pay-off.
Credit Counseling
Credit counseling agencies may help you get out of debt, though they don’t actually consolidate your debt.
Instead, payment plans (usually with lower interest and fees) will be worked out for all of your eligible debts. You’ll make one monthly payment to the counseling agency, which will pay all your creditors.
Participating in a credit counseling program generally won’t hurt your credit rating, and if you stick to the plan you can be out of debt in three to six years. But be careful which agency you work with. If the counseling agency pays your bills late, you’ll pay the price since you’re still responsible to the lender. It happens.
Debt Settlement
Debt settlement is another option that’s become increasingly popular with consumers who have a lot of debt and can’t, or won’t, file bankruptcy. You stop paying your bills and instead make a regular monthly payment to the settlement company. Your creditors contact them, and not you, about your overdue bills. As your accounts fall further behind, the negotiation company will settle your balances – usually for 50% of the balance or less (including fees) depending on the debt. Most people can be out of debt in less than two years or less using these programs.
It’s not perfect. Your credit rating will be hurt in the short run and you must be certain you’re dealing with a reputable company or the money you pay each month could disappear. Still, for consumers who can’t shoulder the burden of debt they have now, it can be a very good option.
Retirement Loans
If you have a 401(k), 403(b) plan or certain types of pension plans, you can borrow against your nest egg. (You can’t borrow against your IRA.) It’s easy, with no income qualifications or credit check.
The key here is to borrow against your retirement account, rather than withdraw from it early so that you don’t end up paying taxes and a 10% penalty. Also, if you leave or lose your job, you may have to pay your loan back immediately or pay taxes and penalties for an early withdrawal.
These loans typically offer low interest rates, and interest is paid to you, since you are the lender. While tapping your next egg like this can short-change your retirement, so can costly debt payments. If you are in your 20’s and 30’s,you obviously have more time to rebuild a retirement nest egg, but even if you’re in your 40’s or 50’s, you will want to weigh the cost of paying the high interest of the debts over time, versus borrowing from your retirement account. The return you get from paying off high-rate debts is guaranteed – while the stock market isn’t.
Rapid Repayment
There is a mathematically optimal way to pay your debts. Choose a fixed level monthly payment, and commit to it each month. Pay as much as you can on the highest rate debt first, while payment the minimums on the rest.
I almost always suggest consumers with debt start by creating one of these plans. Many people who do so find they don’t even need to consolidate to get out of debt in the next few years. They just need a plan and they can do it on their own.
Overview
The biggest mistakes people make when it comes to consolidation are:
A. Not having a plan for paying the debt off after they’ve consolidated, and
B. Procrastination. Waiting for the “perfect” solution to come along almost always means you’ll end up deeper in debt. Choose your approach, and start getting out of debt today!
When It Comes To Credit Cards - More Choice Doesn't Have To Mean More Confusion
By Andrew Regan
When it comes to choosing a credit card, your options are numerous. But all too often, an abundant set of choices can cause confusion. Should you choose a low introductory rate or a low standard APR? Is it worth considering a loyalty, reward or point-based credit card? And what are your choices if you've experienced bad credit ratings in the past? Amidst countless facts and figures, there is a way to make sense of all the credit card offers on the market: use a credit card comparison tool and you'll have all your choices conveniently set in front of you.
Credit card comparison tools are commonly found on consumer comparison sites - sites specifically designed to help consumers sort through an abundant set of various market offers. But instead of merely listing all the offers on one comprehensive site, comparison tools help consumers locate offers that cater to their specific needs. For example, if you're new to the credit card market, different offers will apply to you than if your credit is fairly established. Similarly, if you've experienced credit problems - such as arrears, CCJs, defaults or bankruptcy - in the past, you'll be more suited to certain types of credit cards which will help you stay on track with payments. A consumer comparison site will ask you to enter initial credit card requirements, and will then produce matching offers for you to browse through. So no matter what your circumstances are, you're sure to find an offer which suits you.
With the right comparative tool, you can choose a credit card based on the features which are most important to you. For example, you can pick whether you'd rather find credit cards with a low introductory rate or a low standard APR. Similarly, you can restrict your search to credit cards offering a loyalty bonus or cash back reward, or those which are affiliated with charity programmes. You can even apply for your credit card of choice online - making the search and application process even easier.
If you're looking for a quick and simple way to make sense of all the credit card offers on the market, why not utilise a consumer comparison site? You'll be able to enter your initial requirements - regarding anything from rates to rewards - into a search facility, then view the available offers side by side. Whether you need to find a new credit card or transfer a credit card balance, a simple search with a comparative service can help you track the best deals and rates from providers all across the UK.
Andrew Regan is an online, freelance journalist.
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There are many benefits in choosing a Debt Consolidation Loan, some of which are listed below:
May be able to reduce your monthly payments.
Can take off some of the pressure you may be under from your existing creditors.
You will have only one creditor to deal with.
Lower monthly repayments than unsecured loans
Ability to borrow more money over a longer period of time.
If you find that you are unable to meet your monthly repayments to your creditors, one option is to apply for a debt consolidation loan. The principle behind these is fairly simple - you borrow a large lump sum to repay your creditors and are then left with one creditor and one monthly repayment. This monthly repayment may be lower than the sum you are currently paying, however, you will continue making the repayments for a much longer period.
If your objective is to reduce interest rates and lower your monthly payments, avoid bankruptcy, consolidate your bills and have one monthly payment, or simply get out of debt the fastest way possible, then a debt consolidation loan could provide the answer.
Debt consolidation loans can give you a fresh start, allowing you to consolidate all of your loans into one - giving you one easy to manage payment, and in most cases, at a lower rate of interest.
With a Debt Consolidation Loan you can borrow from £5,000 to £75,000 and up to 125% of your property value in some cases.
A Debt Consolidation Loan is a low cost loan secured on your home. It frees up the spare capital (or equity) in your home to repay your store card and other debts.
There are also disadvantages to a debt consolidation loan such as:
Can pay more over a longer period.
May incur additional costs for setting up the loan.
If secured, your property may be at risk.
You will be left with only one creditor - this can make it difficult to negotiate should you have further problems in repaying your loan.
If the loans you are consolidating have all the interest added at the start you may in effect be paying interest twice. The interest charged for the first loan and the interest charged for the consolidation.
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The Georgia Student Finance Authority (GSFA) is a full service lender that provides "One Stop Shopping" for educational loan needs for high school graduates who are planning to attend college. At the Georgia Student Finance Authority we pride ourselves for the streamlined application and origination processes, as well as providing customer service oriented loan servicing. This means that you get your money when you need it. Then, once you begin to repay your loan, the loan servicing representatives will make sure the process is hassle-free.
Everything you need to know about receiving educational loan assistance to go to college is right here, at your fingertips. Educational loans are one resource available to help you fund your college education. Be sure to explore service cancelable loans, scholarships and grant possibilities, as well as seeking an educational loan. The Stafford Loan is available to students who are eligible to borrow under the FFEL Program. The Georgia Student Finance Authority provides a streamlined process for applying for these educational loans. Then, once you enter repayment, the Georgia Student Finance Authority, with a committment to customer service, will assist you regarding your repayment options.
The Authority offers a variety of repayment options. They are: Standard Graduated Income Sensitive We will work with you to determine which option is best for you. Please remember the following points when making a repayment option selection: The longer the repayment period, the more interest you will pay on your loan(s). You are encouraged to make the largest payments you can afford to keep the total cost of the loan(s) down; You can repay the entire loan or make larger payments at any time without penalty; The minimum monthly payment for any FFELP repayment plan is the amount of interest that accrues monthly; You must select a repayment plan within 45 days of receiving your repayment options packet. If you do not select a plan, your loans will remain on standard repayment.
Standard Repayment:
Every borrower who enters repayment is initially set up on this repayment option. In order to be converted to graduated or income sensitive repayment, you must contact Loan Servicing at (770) 414-3000 or 1-800-776-6878 and request a repayment options selection packet. Standard repayment is encouraged because you pay the least interest with this option. This plan allows for up to ten years to repay the loan(s), with substantially equal payments. The standard, minimum monthly payment is $50. If you do not select another repayment plan option within 45 days of receiving your initial repayment schedule, your loan(s) will remain on standard repayment. Fixed Interest Rate: If your loan(s) carry a fixed interest rate, you will pay the same monthly payment amount during the repayment period. The final payment may be slightly more or less than your regular payment, depending on your repayment history.
Variable Interest Rate: If your loan(s) carry a variable interest rate, you will pay the same monthly payment amount during the repayment period. The changing interest rate will affect the amount of each payment that is applied to the principal balance on your account. You may be granted an extension of up to three years to repay due to the effect of the variable rate on your account. GSFA Servicing also has the option of changing your payment amount with each interest rate change.
Graduated Repayment: Under this plan, you will pay increasingly larger payments during the repayment period. No one payment can be three times larger than the smallest payment. The smallest payment cannot be less than the monthly accrued interest. Otherwise, there is no minimum payment, and the repayment period cannot exceed ten years.
Income-Sensitive Repayment: Under this plan, your monthly payment will be based on your expected monthly gross income and will be re-examined annually. The smallest payment cannot be less than accrued interest, and the repayment term is ten years. If your income sensitive payments are less than the standard principal and interest payments, you may receive extensions of the repayment term for up to five additional years. If you wish to receive the extension, you must provide GSFA Servicing with documentation of your most recent monthly gross income. Income-sensitive repayment may significantly increase or decrease the total financing cost of the loan(s), depending on your principal loan balance and income.
GEORGIA TUITION EQUALIZATION GRANT OBJECTIVE:
1. To promote the private segment of higher education in Georgia by providing non-repayable grant aid to Georgia residents who attend eligible independent colleges and universities in Georgia.
2. To provide non-repayable grant aid to residents of Georgia who live near the State borders to attend certain four-year public colleges out-of-state, so that a four-year public college is equally available to all Georgians.
FUNDING: State Appropriations
ELIGIBILITY:APPLICATION PROCEDURES:
1. Complete Georgia Student Grant Application.
2. Complete an affidavit to verify mileage (out of state only).
3. Deadline - date is set by the school.
AWARD: $1,000 per academic year
AMOUNT AWARDED FY 98: $24,935,887
NUMBER AWARDED FY 98: 29,486
To view even more programs offered by the Georgia State Student Finance Commission, you can visit them and apply online at http://www.gsfc.org/Student loans are an unfortunate fact of life for an increasing number of American students. It is not the aim of this page to scare you about student loans but rather, to give you some information so that you can make the choice that is best for you in regards to getting a student loan. Knowledge is power, and the more you know about what you are getting into when you sign those loan papers, the better you will be in the long run.
A survey by the National Council of Higher Education Loan Programs (NCHELP) confirmed that student loans continue to be the largest source of student aid, with approximately $29 billion for the 1995-96 federal fiscal year provided to students to meet their postsecondary educational costs. Private lenders financed over 68 percent of the total, or an estimated $19.8 billion, under the Federal Family Education Loan Program (FFELP - formerly Guaranteed Student Loans), according to the National Council of Higher Education Loan Programs (NCHELP) survey.
The most popular form of financial aid for students is Student Loans. While there are a variety of loan programs available, the largest programs are the Subsidized Federal Stafford Loans and the Unsubsidized Federal Stafford Loans.
Subsidized Federal Stafford loans are Big Business and Big Profit for a huge number of banks and finance corporations in America. While you are attending school, the Federal Government (read: The Taxpayers) pays the interest charges that accumulate on your loan.
If you have a subsidized loan, you do not pay this accumulated interest back. If your loan is unsubsidized, the accumulated interest must be paid during the term of the loan, or it can be "deferred" until you begin making payments.
For both subsidized and unsubsidized loans, most students do not make any payments on the principle OR the interest until six months after they graduate, leave school, or drop to less than half-time. If you attend school for four years and do not begin repayment until six months after you graduate, assuming you received a maximum loan every year, this can be as much as $5,200 that the Government has paid to the bank to cover your interest charges. With a subsidized loan, this is also a SAVINGS of $5,200 of the total interest charge that you would pay.
The average college undergraduate leaves school $10,000 in debt, an increase of 15 percent from last year, says the nation's largest student loan guarantee agency. The Indianapolis-based USA Group attributes the increase to higher college costs, expanded loan eligibility and the growing amount of student aid offered through loans rather than grants. Education Daily - August 14, 1996 by Rebecca S. Weiner
Unsubsidized Federal Stafford loans are also big business, except that YOU are responsible for the interest payments while you are in school. This can greatly increase the overall cost of your loan. While payment on the principle can be deferred until six months after you leave school, you are required to make payments on the interest (usually quarterly) while you are in school. In some cases, you may be permitted to defer all interest payments until you begin making payments on the loan.
Banks may encourage you to take advantage of deferring principle payments, as this increases the overall amount of interest (read: profit) that they make over the lifetime of the loan. Remember... interest will accumulate on the deferred interest! Unsubsidized Federal Stafford Loans also have a higher maximum amount that you may borrow... and ultimately pay back.
...$50.3 billion in total aid from federal, state and institutional sources was available to students in 1995-96, an increase of $3.3 billion over 1994-95. The study notes that most of that increase was in the form of loans rather than grants and that most of the increased borrowing was unsubsidized. Grants now represent 42 percent and loans 57 percent of total federal, state and institutional aid, compared with 10 years ago... College Board study, "Trends in Student Aid: 1986 to 1996
REMEMBER: YOU HAVE TO PAY BACK THE LOAN EVEN IF YOU DO NOT GRADUATE. This seems like a simple enough concept, yet in 1996 the Federal Government lost $2.7 BILLION to student loan defaults. The Government is not "guaranteeing" your ability to finish school. It's just guaranteeing that you will pay back the loan.
