Finance, Loan, Debt and Credit.

October 31, 2012

Are There Risks to Debt Consolidation?

Filed under: Debt — Tags: , , , , , — admin @ 12:47 pm

A substantial number of people nowadays get themselves into such debt that they sometimes have to accrue further debt in order to pay it.
This fighting-fire-with-fire approach, if misunderstood or misused, can lead to further debt problems instead of helping to solve them.
It can be potentially as deadly to your finances as the Mann Gulch fire was to the hapless smokejumpers whose task it was to try and control it.
What is Debt Consolidation?
In a nutshell, debt consolidation is a way of refinancing a loan. It involves a person either taking out a single loan (secured or unsecured, depending on the package offered) and using the payments to pay it instead of their numerous other loans, or debt can be consolidated by merging credit card accounts into one account.
For the former, the payments are then used by the finance company to pay back the other loans, and in effect, the person’s other debts come under the aegis of this debt consolidation loan.
What debts are eligible to be included depends on the debt consolidation package being offered and the ability of either the debt consolidation company and/or the debtor to renegotiate their loan terms.
Debt consolidation offers several advantages. For one thing, it’s often easier to make a single payment than trying to remember what to pay off when. Some people are just not that good at remembering and scheduling payments.
The convenience offered by a debt consolidation loan can also offer peace of mind to a person. The debtor can also avail of the advantages of paying off a lower interest rate presented by one single loan, instead of having to pay off the interest of many loans.
In some cases, the debtor can also prepay their creditors through the debt consolidation loan.
Naturally, undergoing debt consolidation entails its own set of risks. One is that one’s credit rating takes a hit when one undergoes debt consolidation. It is taking out another loan, after all, and essentially zeroing out any progress the person has made paying off the other debts.
Another is that debt consolidation loans might not offer interest rate advantages over individual loans, because people who have been paying off their loans for a long time can often renegotiate their terms with their creditor, and these might be lower than the interest rate offered by the debt consolidation company’s loan.
Still another is that the refinancing plan can fail if the person doesn’t make some changes to curb his or her spending and save more money.
Debt consolidation is a drastic step to take, a fact some people don’t seem to understand. Some see their credit card balance or their loan read “$0” and take it as carte blanche to keep right on spending and spending.
In this situation, the new loan can act merely as a sticking-plaster on a serious wound, halting problems temporarily but doing nothing to remedy the underlying situation.
If the person who took out the debt consolidation loan should then be unable to repay it for example, they need the money due to a family emergency and they would find themselves in more trouble than they were at the start.

Zulika van Heerden provides valuable information on her site on how to
live a debt free life.
To read more tips and techniques like the ones in this article go to:

Credit Card Debt Repayment – If You Cannot Pay Use Settlement

Are you battling with debt? Do you toss those bills on the stair stoop and decide that whichever one falls on the first step you will pay and the others that fall below will have to wait until next month?

Believe it or not, but this is the way many people solve their credit card debt payment problem. But does this solve it or get you into further debt?

Hector Milla Editor of the “Get Rid Of Credit Card Debt” website — — pointed out;

“…The point is that credit card debt won’t go away by itself and will just continue to get worse until you do something about it. But going off and deciding that it’s time to declare bankruptcy isn’t going to solve your problem either. To solve debt problems, you need to know as much as possible about debt, the law and your rights…”

This means you should look into options like debt counseling and debt consolidation. You need to read as much as you can about ways of getting out of debt, and consult with professionals about the best way to do this.

Settlement is one option that may work for your credit card debt problem. Generally speaking when you settle your debt you, or someone you hire negotiates your debt with your creditors. You eliminate late fees, additional interest and try to minimize the debt of each creditor. Once you have done this with each company you owe money to, then all of the debt is placed together and a loan is given for that amount.

“…This way you not only pay of your credit card debt but often you end up making a smaller monthly payment than the amount of all the monthly payments you were previously making. Taking debt settlement is the easiest way of getting rid of credit card debt but there is just one glitch. You must learn to budget yourself and keep those credit cards clean. If you have a spending problem then you will end up owing money on the credit cards again which will only put you further into debt…” added H. Milla.

Further information about trusted and reputable companies for credit card debt settlement by visiting;

Hector Milla runs his corporate website at where you can see all his articles and press releases.

October 30, 2012

The Difference between a Reverse, or Negative Amortization Mortgage and a Reverse Mortgage

There is a lot of confusion between the terms “reverse amortization mortgage” and “reverse mortgage.” Compounding the confusion is the fact that the word “amortization” is probably the hardest word in the English language to spell. It is commonly written by some very intelligent folks as amorazation or amerazation.
As a result, many people just leave the amortization part out, and do web searches for reverse mortgages when really what they want to find out about, and hopefully learn to avoid, are negative amortization mortgages.
On the other hand, some people may be interested in a reverse mortgage, but end up being solicited by a throng of crazed mortgage brokers who want to sell them a negative amortization mortgage.
Let’s see if we can help lift the fog on these confusing terms that describe a couple of very dissimilar types of mortgages.
A reverse or negative amortization mortgage
A negative amortization mortgage is sometimes referred to as a reverse amortization mortgage. With either terminology, what happens with this type of mortgage is that the principal owed on the mortgage is allowed to increase in the early stage of the mortgage. This early stage is commonly referred to as the negative amortization or negam portion of the mortgage. This negam stage usually lasts 3 to 5 years.
For example, a borrower takes a mortgage on his/her property for $300,000. Under the terms of the mortgage, he/she will be required to make the minimum monthly payment of $988.99 each month for the first 60 months, or 5 years of the mortgage. This 5-year period is, of course, the negam period. When you calculate the interest rate for this negam period you’ll find that it is 1.173%!
When the negam period ends, basically, the party’s over. Under the terms of this particular mortgage, the interest rate increases to 7.75% and that’s not all! The interest rate has been 7.75% all along, but the borrower was not obligated to pay this much during the negam stage of the loan. So, what happened was, the interest that wasn’t being paid during the negam stage was being added on to the principal of the mortgage. Now, 5 years later, the principal that was originally $300,000 has ballooned to $369,241.25!
Let’s run the numbers for the post negam or regular stage of this mortgage. The term of the mortgage is 30 years. So now, there are 25 years left for the borrower to pay $369,241.25 at 7.75%. This will require a minimum monthly payment of $2,788.99, or exactly $1,800 a month more than the borrower has been paying.
These numbers are the exact numbers taken from an existing negative amortization mortgage. There are many variations to how a negam works, but with every one, the monthly payment starts small and the principal increases in the negam period. Then, in the regular period, the required monthly payment increases, sometimes to 2, 3 or even 4 times its original amount.
A reverse mortgage
A reverse mortgage was devised to help retired people augment their income. This type of mortgage is available to people who are 62 years of age and older.
With a reverse mortgage the retiree sells off some of his/her equity in their home and can opt to receive the payment in a lump sum, as monthly payments, or as has become most common, a line of credit to be used at any time for anything.
The person taking the reverse mortgage is not required to pay anything back on the mortgage, but sometimes there is a time limit to which he/she will receive payments on the reverse mortgage.
Many times a reverse mortgage is structured where a person sells his/her equity and in return will receive monthly payments for life. Of course, in this case, after the homeowner is deceased, he/she cannot leave the equity, which has been sold in the reverse mortgage to his/her descendants. So, if all the equity has been used for a reverse mortgage, the deceased person will not be able to leave the home to anyone.
Despite that drawback, a reverse mortgage can be great tool for a retired person to use as a way to add more income to his/her pension and/or social security.
On the other hand a reverse or negative amortization mortgage was devised, in my opinion, as a way for banks and other lenders to drum up more business by qualifying borrowers who may eventually end up in foreclosure because of them.

Ed Lathrop is a successful Real Estate investor. He has developed EzCalculator, a Mortgage Calculator that calculates anything to do with mortgages, shows you how to pay off credit card debt and now includes a free student loan calculator. This Free Mortgage Calculator, is home to the famous “How to Make $100,000 on Your Mortgage” calculator. Come visit this free site at Free Mortgage Calculator!

Personal Debt Consolidation Loan: Makes You Capable of Repaying

Filed under: Loan — Tags: , , , , , , , — admin @ 12:47 am

Debt consolidation loans play a vital role in man’s life. When you have multiple numbers of debts and are overburdened with higher interest rates obviously you will need someone to help you in lessening this burden. In such cases, it is the personal debt consolidation loan that will relieve you a lot.

You will get two forms of such loans, one is secured and the other is unsecured. For receiving the secured loans you must place collateral. As security you can place anything of your property that is valuable, e.g., car, home or your stocks and bonds. The advantages of these loans are lower interest rate and longer repayment term.

In the unsecured loans, on the contrary, you need not keep any collateral. Usually the rate of interest in it is higher. But as you will find a bevy of lenders available online, finding out a suitable loan will not be impossible for you. These loans will be helpful for you to pay off your small debts.

A debt consolidation loan is usually allowed to be taken up when you have multiple numbers of debts with more than £5,000 to pay off. In this loan you can merge all your unpaid debts together and hence, the rate of interest too will be united. Thus, such online debt consolidation loans will let you make just one payment in a month, on the entire debt balance. The interest rate too will be much lower than what you used to pay. The loan burden, in this way gets much lighten.

For bad credit holder too the personal debt consolidation loans are solid. You can apply for these loans in spite of having bad credit records like arrears, late payment, skipping of installments, bankruptcy, CCJs or defaults. For borrowers like you, now the excessive debts cannot create problems.

Eva Baldwyn aims to inform common men and women of the several issues involved in personal loans through her articles. An MSc in Economics & Finance from the Warwick Business School is proof enough of the knowledge that she possesses in the field of finance. To find Personal debt consolidation loan visit

October 29, 2012

What Is All The Fuss About Debt Consolidation?

Filed under: Debt — Tags: , , , , , — admin @ 12:46 pm

Debt is a very real problem across the country. The increase in the popularity of credit cards and high-end consumer products in recent years has only fed that problem. As a result, there are now people in the hundreds of thousands who are in debt to the point that they cannot immediately pay what they owe.
What a Relief
One of the commonest ways of dealing with piled up debt nowadays is by consolidating your debts. When you make the choice of debt consolidation, you borrow money from a lending institution to pay off several other debts. This effectively puts together those smaller debts into one bigger but easier to manage debt.
Now, it might seem to you that putting several of your debts into yet another, even larger debt could just be landing you in more hot water. However, loans that are specifically for debt consolidation are often either better structured or have lower interest rates.
Additionally, there are some cases where the company that consolidates your debt could negotiate better terms or better interest rates with your previous creditors for you.
When you consolidate your debts, you essentially buy yourself some extra time to earn some money to pay for those debts you built up in the past. Keep in mind that debt consolidation by no means forgives you of those amounts owed and that you will have to pay them back eventually.
Cons of Consolidation
Just like any other financial scheme, there are some downsides to consolidating your debts. For one, it is rather intimidating to be dealing with the grand total of all your previous debts, plus interest, even if the interest rates for debt consolidation loans are usually cheaper.
Because it is a secured loan, there is no extending the deadline for payments on consolidated debts, short of entering into yet another debt consolidation plan.
Regardless of whatever variant of debt consolidation plans you are looking at, consolidating your debts really has a lot of pros to outweigh its cons. It is a great way to gradually eliminate old and mounting debts without having to give up certain assets like your house or your car for immediate repayment.
Think of it as restructuring your finances. Sure, it might be nicer to look at if your debts were several in number but smaller in amount. However, that kind of arrangement is harder to deal with, especially when different terms are involved.
With a debt consolidation plan, you get everything nice and neat in one little package, with better terms and a better interest rate thrown in for good measure.

Zulika van Heerden provides valuable information on her site on how to
live a debt free life.
To read more tips and techniques like the ones in this article go to:

Debt Consolidation UK: Secured and Unsecured Debt Consolidation Explained

Filed under: Debt — Tags: , , , , , , , , — admin @ 12:47 am

If you are in debt trouble and getting too stress out of managing your indebtedness in UK, debt consolidation UK is an option. You do not really need to compare the process with other countries because debt consolidation UK is not much different. Too much debts and loans to manage can take a bad toll on your health too.
To consolidate debt loans, you have to choose between secured and unsecured debt consolidation.Do it for your fianncial wellness.
Secured debt consolidation means to consolidate debt loans into one single easy to manage bill payment against some form of security. The security can come in the form of a pledge against your home equity. Or can be anything of value that would be pledge by you as an insurance against non payment. Simply put, you have to put collateral for the loan.
There are many benefits to a secured debt consolidation loans. The secured type can give a lower interest rate and reduce the outbound payments. You may also have cheaper debt settlement options. It also consolidates all existing indebtedness into one single manageable loan payments. It will also enable you to make one monthly bill instalments rather than a multiple bill payments. It will also lower the amount of your monthly bill payments. And the best part is you only deal with one lender.
The calculations of interest rate are largely dependent on your personal situation. Meaning it depends on your credit standing and personal financial condition. Suffice to say your monthly repayments and interest rates vary from person to person. A better credit score thus give a better deal in terms of interest rate and repayment options.
Unsecured debt consolidation loan is sometimes much preferred by most people as you do not have to pledge or uses any collateral. This type of debt consolidation is more risky for the lender or financial institution. It is very ideal for people who do not want to pledge any of their property. It is also an ideal way to consolidate debt loans and do not have to worry if in case you default on your payments.
Unsecured personal loans do not require any type of pledge, collateral, or security for approval. The difference with this type is that it may have a higher interest rate. It is higher because of the fact that the lender has taken the risk. Since you are not pledging any form of collateral, it does not mean the lender cannot recoup their money. They can still get their money back through the legal process.
The unsecured type of personal consolidation loans are typically spread over a shorter period of time. So have to establish your ability to and the income source to be able to repayment such indebtedness.
So when you talk about debt consolidation UK, inquire online on how it is done. Although there is not much difference from other countries or states banks and lenders do differ on how to handle their processes. If you go online in Great Britain and need a debt consolidation, make sure you are searching from the right site.

If You Want To Do A Debt Consolidation UK or simply Consolidate Debt Loans go to:

October 28, 2012

Legal Credit Card Debt Elimination – Solving Financial Problems Fast

Credit card debt doesn’t have to be a part of your life, you can in fact solve it quickly.

There are a number of ways to get rid of debt and one of them is through legal credit card debt elimination. These legal strategies help eliminate some of that credit card debt making it easier to pay off.

Hector Milla Editor of the “Credit Card Debt Counseling” website — – pointed out;

“…Did you know that many people choose bankruptcy as an option, only because they are frightened of the credit collectors, and believe there is no other option? But there are actually many options to help reduce the amount of debt you carry on credit cards. You just have to read up on the issue to find the right solution. In fact, there are cases where people have eliminated as much as 50% of their credit card debt just by using a few simple tactics…”

For example, if you take that $5000 credit card debt you now have and study up on the different options, and if you learn to negotiate with your creditors then you can eliminate some of that debt and easily pay off the rest.

Sometimes negotiating debt with creditors takes a lot of time, and it is usually in your best interest to find a professional to help negotiate your debt. The help of a good debt consolidation program, or a debt settlement program can be crucial at this point. The people that work in debt consolidation and debt settlement are experts in credit card debt and in dealing with credit card companies.

Often, a debt consolidation company or a debt settlement company can negotiate and minimize your debt much better than you ever could on your own.

“…Be aware that there are a lot of scams out there that offer to eliminate your entire debt with no strings attached, unfortunately this isn’t the case. Getting out of debt takes some work, but the good news is that it is possible. Your best bet is to read up on several options, talk to consultants, and get into a good program. Remember, if it sounds too good to be true, it usually is…” added H. Milla.

Further information about trusted and reputable companies for credit card debt settlement by visiting;

Hector Milla runs his corporate website at where you can see all his articles and press releases.

Debt Consolidation Loans: Allocating Funds And Support To Get Rid Of Multiple Debts

Filed under: Loan — Tags: , , , , , , , , , — admin @ 12:47 am


With so many expenses on the rise, the borrowers face many problems in the repayment of the loans. Improper management and overspending may lead to these debt problems. To take care of these debt problems, debt consolidation loans can be borrowed and the borrower can be relieved of the stress.

Debt consolidation loan deliberately consolidates the miscellaneous debts in the easiest way. All the numerous debts will be paid in a single amount, which in turn lessen the load of the debts. These loans help debtors to obligate to a single creditor instead of many. Furthermore, the rate of interest in this loan is offered at much cut down prices. Every debtor can avail a rate according to their repayment capability. The slashes in the rates facilitate debtors to save and stabilize their financial condition.

This kind of a loan can be obtained with or without placing collateral. The collateral is accepted which have a monetary value like, house, land, estate, car and documents. Tenants and non-homeowners can also subscribe the fund without placing collateral. This loan allocates funds and support debtors financially to consolidate their debts. Every debt related issues and hassles can be settled with the help of such loans. The borrower of debt consolidation loan can shed all the debts and credit without any delay.

To avail the loan in instant debtors should use the online application process. This application procedure is fast, reliable and convenient and moreover it consumes less time and save effort of users. The online application form is simple and intelligible for all.

Debtors with the help of debt consolidation loan can consolidate every personal, credit card or any other debts in one manageable loan. Added to this, the debtors enjoy the privilege to make easy repayments. So, with debt consolidation loan you are on a way to enjoy a debt free life.

Andrew devan is a creative writer and gives advice timely in many finance related issues. To know more about Secured debt consolidation loans UK , Debt management, Unsecured debt consolidation loans UK visit

October 27, 2012

Student Debt Consolidation Loan – Tension Free Student Life

Filed under: Debt — Tags: , , , , , , , , — admin @ 12:46 pm

Student life is once, so we must enjoy it. But the tension of paying off the different student loans can be frustrating at times. Besides procrastination is also a natural part of student’s college life. This does not harm your results but not paying loans at time will definitely affect your financial future. The best option for a student to keep his financial worries away and enjoy maximum of college life is student debt consolidation loan. Such a loan consolidates all your loans into a single one which is easy to manage.

Student debt consolidation loan: Distinct features

Fundamentally student consolidated loan is a large loan taking care of all your numerous small loans. But they differ from other types of consolidation loans on various grounds. Some distinctive features are:-

1) Student loans in default can’t be consolidated but student loans that are in grace period as well as loans on which you are currently making payments can be consolidated.

2) Student loans through conventional federal funding find it relatively easy to obtain a consolidated loan than loans from private funding sources.

3) No fee is levied to consolidate student loan debt.

Student debt consolidation loan: Amount, interest rate and repayment period

Certain lenders require that a minimum amount of student loan debt should be consolidated. This amount varies from lender to lender but if your total loan amount is less than £10,000 then you may find fewer options while consolidating. The interest rate of debt consolidation loan for students is the weighted average rate of all existing loans. A typical repayment period is ten years but students with £60,000 or more in student loans can apply to extend their payment period up to thirty years.

Student debt consolidation loan: Benefits

One can save thousands of pounds over the period of loan because of low interest rate. It also helps in lowering your monthly installments by extending repayment terms. Moreover interest of debt consolidation loan is tax-deductible, which further reduces cost of borrowing. It also helps in improving credit ratings.

Choosing a wrong loan is just like locking your doors for further financial development. Michael Moore is a person who helps you unlock new doors and open new possibilities, no matter how unique your situation is. To find Debt consolidation UK, Unsecured debt consolidation loans UK, Debt management, Non homeowner debt consolidation loans visit

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