Finance, Loan, Debt and Credit.

December 31, 2017

Mortgage Management – Essential Refinance Considerations

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


The Single Largest Financial Obligation

Your mortgage is probably the single largest financial obligation that you will have in your life. The investment that you have in your home can have great long term value, but on a month by month basis it represents a significant expense. The math for most people is simple, the more you pay on your mortgage, the less you have to spend on other things.

To underline this point it might be of interest to note that in 1980 the average person spent 25% of their gross monthly income on housing expenses. By 2005 that percentage had risen to over 43%. This is not really a surprise. We are all aware that home prices have risen significantly during this period of time. Income levels have not kept up with home prices and as a result home buyers are finding more of their paycheck going towards their mortgage payment.

Florida mortgage holders have acutely felt the impact as home prices in recent years have rivaled those of California. Your mortgage may consume more or less than the average 43% of your gross monthly income, but it is probably safe to say that it deserves to be intelligently managed.Mortgage Management

I’ve been a licensed Florida mortgage broker since 1989. My company Power Mortgage Corp. a Florida Mortgage Company is also licensed in Georgia, Massachusetts, and Virginia. Over the years I have originated, refinanced, and analyzed countless mortgages. I’m always happy when we can help a customer make an intelligent decision about their mortgage. Active, regular mortgage management can make a big difference in your life. The right choices will save you money. Sometimes lots of money.To Refinance or Not to Refinance

Active mortgage management does not always mean taking action. Active mortgage management means an intelligent periodic review of available options. Call your friendly mortgage broker from time to time! We like to hear from you. We will always take the time to help you understand your options. And always make sure that you know all of the costs involved.

Request a Good Faith Estimate. Make sure that your mortgage broker includes all third party charges and statutory costs along with the lender fees. It is equally important to consider your personal goals; how long will be in the home? Do you plan to retire soon? What type of personal saving plans do you have? What is your aversion to risk? Is an adjustable rate mortgage suitable?Fixed or Adjustable

Fixed rate mortgages are pretty easy to understand. Adjustable rate mortgages on the other hand can be surprisingly complex. And there are literally thousands of variations of adjustable rate mortgages. Over the last five years negative amortization adjustable rate mortgages have become popular. Florida mortgage borrowers have embraced these programs for the advertised low payment rates. But these loans are complex; I believe that very few people that get this type of mortgage understand them. I also believe that there are mortgage brokers actively selling these programs that do not understand them.

Please take your time. Ask lots of questions. Take notes. Ask more questions. Make sure you understand the index, the margin, the adjustment period for both the note and the payment. It wouldn’t hurt to look at the worst case scenario. Can you live with it? If your mortgage broker can’t answer your questions find a new mortgage broker. Your financial life may depend on it.How About a 15 Year Fixed?

There was a time when the interest rate on a 15 year fixed rate mortgage was consistently and significantly lower than the rate on a 30 year fixed rate mortgage. Between June of 2004 and June of 2006 the Federal Reserve increased the Federal Funds rate 17 times. This rate directly impacts all short term interest rates such as the Prime Rate. During the same period of time the long term rates remained more or less steady. The net effect was to close the gap between rates on shorter term mortgages like the 15 year fixed and longer term mortgages like the 30 year fixed.

At the time of this writing the rates on these two loan products happen to be exactly the same. But this should not take the 15 year fixed rate mortgage out of contention. For many people it is an excellent option. And it can still save lots of money.

For example, the payment on a 30 year fixed rate mortgage for $100,000 at 6% is $599.55. The payment on a 15 year fixed rate mortgage for $100,000 at 6% is $843.85. That is an extra $244.30 per month on the 15 year mortgage. But consider that the total payments made on the 30 year loan would be $215,838, versus $151,893 on the 15 year mortgage. By choosing the 15 year mortgage you would save $63,945. And you get to stop making mortgage payment in 15 years!Interest Only

Given the high cost of homes it is no surprise that interest only programs have become so popular. Florida mortgage customers have flocked to these programs to make increasingly expensive homes affordable. An interest only mortgage can be appropriate if your sole concern is cash flow. During the interest only period you will not be paying any principle off. There are many types of interest only mortgage programs. The majority of interest only mortgage programs are “fixed period adjustable rate mortgages”. This means that they are fixed for a limited period of time; typically 3, 5, 7, or 10 years.

The interest only period usually corresponds to the fixed rate period. Once the fixed rate period ends the mortgage becomes adjustable. A new version of the interest only mortgage worth considering is the 30 year fixed rate mortgage with a 10 year interest only period. You get the benefits of the low interest only payment for 10 years – but with no adjustable rate risk waiting for you at the end of the interest only period.It’s Your Money

How often do you balance your checkbook, get a physical exam, go to the dentist? Your mortgage can have a huge impact on the quality of your life. Think of your mortgage from time to time. Call your friendly mortgage broker. Have a chat. Ask questions. It’s your money.

Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.

Florida mortgage broker, Jim Kemish is the president and founder of Power Mortgage, a Florida mortgage company based in Delray Beach, Florida. Power Mortgage Corp was established in 1989 and serves the states of Florida, Georgia, Massachusetts, and Virginia. Jim is also the President of Sky Blue Credit, a national credit repair business.

Which Mortgage is Best for You?

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


Many homeowners today are searching for a new loan. Most are looking to refinance the interest high loans. Back in 2005 many homeowners purchased their loan with a low entry interest rate, just to qualify for the loan. But, today that same loan has readjusted upward and the monthly payment has in some cases double!

If you’re in this situation then read on. There are many different loans that are available today. Becoming familiar with the different loan options will help you make a better decision.

First think about what it is that your trying to do? For example, if your current loan has adjusted and now your monthly payment has increased to a level where you can no longer keep making the payment. You will need to refinance your current loan. Depending on how long you plan on staying in your home you will probably want a fix rate loan.

Start learning about the different loans:

A fixed rate mortgage is a way to refinance higher adjustable rate mortgages. Two of the most common choices you’ll find in the mortgage market are adjustable rate mortgages and fixed rate mortgages. Fixed rate mortgages are the most common type of house-buying loan, where the payments and interest rates remain the same, no matter what happens.

One reason that immediately comes to mind is the fact that, although the most common 30-year first mortgages have fixed rates, piggyback mortgage have variable interest rates that can zoom up and present an unplanned burden for the borrower. Adjustable rate mortgages usually have an initial fixed rate that is lower than the interest rate of a comparable fixed rate mortgage. Many people commonly use second mortgages for such expenses as home improvements, the purchase of a second or vacation home and to consolidate other debts with a lower interest rate.

A general requirement to qualify for bad credit second mortgages is that the owner should have home equity. Aside from this, bad credit mortgages can help the owner gather wealth. There are a number of advantages when an owner gets bad credit second mortgages.

The companies who specialize in bad credit mortgages are usually trained in how to help people gain a mortgage with those blemishes. If you are interested in a mortgage for people with bad credit then the best thing to do is speak to a professional mortgage broker, who specializes in providing advice for bad credit mortgages. Unfortunately one of the consequences of having bad credit is that lenders are wary about lending money to you, especially when it is for as large an amount as a mortgage.

Principal limit or maximum principal limit is the total aggregate amount of money that will ever be available over the life of the reverse mortgage. A second solution is the Lender-Paid Mortgage Insurance (LPMI) in which the lender, and not the borrower, “pays up front” the cost of the insurance but the total amount is rolled into the mortgage and amortized over the whole life of the loan. Age is a primary consideration because the longer the life expectancy of the youngest borrower, the more servicing fees, mortgage insurance premiums, and interest will be charged to the loan balance over the life of the loan.

Because the principle balance was never reduced, the borrower will owe the Mortgage Company the full amount at the conclusion of the interest only period. Increased cash flow with reduced mortgage payments during the first few years than conventional mortgages, because initially you’re only paying interest. Reverse mortgages are simply loans that enable homeowners 62 or older to borrow against the equity in their homes, without having to sell the home or take on new monthly mortgage payments.

Homeowners who are sixty-two or older can borrow against the equity in their homes under a reverse mortgage program. The Reverse Mortgage Program allows seniors to convert the equity from their homes into retirement income. Stated income home equity lines are available to all borrowers but the mortgage lenders usually require the borrower to have a minimum fico score of 680 or better.

First of all, you need a higher FICO (credit) score to qualify for the piggyback (about 680) than for the first mortgage (as low as 620 will do). Because you are not providing information for the lender to assess risk other than your credit score, the interest rate you qualify for will be higher than a traditional mortgage. Fixed rate, traditional mortgages have the advantage of providing a constant payment amount with an interest rate that will not change because of the Federal Reserve or economic uncertainty when bombs fall in the Middle East.

Discount rate mortgages are a type of variable rate mortgage where there is an introductory period during which an agreed reduction in the usual variable rate is provided. Capped rate is a type of variable mortgage with an introductory period where the upper level to which the interest rate can increase is restricted. In an ARM, the interest rates are fixed only for a certain time period after which they change according to the existing rates in the market and some market index such as Prime Rate, LIBOR, and Treasury Index etc.

Adjustable rate mortgages are a great idea when the interest rates are all set to go down for the next several years. Mortgage rates are already reacting with the rates for fixed rate mortgages rising. The long term, purchase money mortgages made to homeowners, would have smaller returns, just below the rates the banks are charging, because of the relative safety of the loan.

According to several large home equity lenders, the secondary loan volume increases when interest rates climb, because homeowners don’t want to refinance the first mortgage lien. For the latest interest rates for fixed rate mortgages and interest only credit lines, please visit the online resources at BD Second Mortgage & Equity Loans. The point to be pondered is that bad credit mortgages have higher interest rates than most other types of loans.

Clifton Waldrep: has over 25 years of experience in the real estate field. You will be amazed at the diversity of his Real Estate knowledge. From buying and selling real estate, to subjects like FSBO, Foreclosures, Rehabbing, No Money Down, Commercial Real Estate, Real Estate Property Management, Remodeling your home, and much, much more! Check out his web site at http://www.mortgage-refinancing-news.com/

December 30, 2017

Cash Loan for Debt Consolidation: One Payment for Several Loans

Filed under: Debt — Tags: , , , , , , , , , — admin @ 12:48 pm


Cash loans for debt consolidation are meant for people trapped in multiple debts. Cash loan for debt consolidation helps you to tackle your multiple debts and get rid of them. Cash loans for debt consolidation are open to both good credit borrowers and bad credit borrowers.

These help you merge all your debts into one with lower interest rate. Also you have to pay only one monthly installment instead of many and the interest rate of your debt is reduced. Lenders not only advance you cash loan for debt consolidation but also negotiate with your previous creditors on your behalf in order to reduce the interest rate of debts. This way you can easily merge all your debts into one with lower interest rate with flexible repayment duration.

Cash loans for debt consolidation are basically of two types, secured and unsecured Cash loan for debt consolidation. To avail secured cash loan for debt consolidation you will have to place one of your properties as collateral with the lender. On the other hand no such collateral is needed to avail an unsecured cash loan for debt consolidation. Unsecured cash loans for debt consolidation carry slightly higher interest rate compared to secured cash loan for debt consolidation because of the risk factor involved. Also large amount of money can be availed with secured Cash loan for debt consolidation.

People suffering from bad credit history can also avail the benefits of cash loan for debt consolidation. Anyone facing arrears, defaults, CCJ, IVA, bankruptcy etc can avail Cash loan for debt consolidation. With Cash loan for debt consolidation bad credit borrowers can not only get rid of their debts but can also improve their credit score by paying the loan installments regularly.

While applying for cash loan for debt consolidation, always give preference to lenders who are well known and have good reputation in the market. This way you can avoid the loan sharks of the financial market. You can also use internet to search for lenders. This way you will be able to find a lender offering cash loan for debt consolidation at competitive interest rate. With Cash loans for debt consolidation you can mange your multiple debts efficiently and pay them off.

Jennifer Morva has been associated with Bad Credit Personal Loans. Having completed his Masters in Finance from Lancaster University Management School, he undertook to provide useful advice through his articles that have been found very useful by the residents of the UK. To find secured loans, personal loans, bad credit loans, Bad credit personal loans visit http://www.debtconsolidationloans.me.uk

Does A Credit Card Debt Consolidation Company Request A Settlement?


When it comes to credit card debt consolidations and credit card debt settlements, no a credit card consolidation company will not give you a settlement, because a settlement plan and a debt consolidation plan are two totally different things.

Debt settlements – A debt settlement is an agreement between you and the original company in which you owe money to, to cut out or greatly decrease the total charges of late fees and hidden charges added on top of your original payment agreement to help make a total debt more affordable to pay off and usually requires you to pay some sort of upfront payment as proof that you are now capable and dedicated to you continuing paying your current charges in full and on time.

Hector Milla Editor of the “Get Rid Of Credit Card Debt” website — http://www.GetRidOfCreditCardDebts.net — pointed out;

“…This is typically only a plan offered to people who are very much so in debt with the original loan or debt holder and not available to people only slightly in debt…”

Consolidation plan – Is a company which takes your original debt from the original credit card companies which you owe money to, either one or many. And totals up the complete amount of money in which you owe, having you sign over an asset of equal or greater value to your said debt, and then applying that value to paying back those companies.

Thus you will only be owing money to the consolidation company and paying less on fees, and late charges which can severely add up when you are in debt with many different companies. The consolidation company will create a plan which is friendly with your total income, helping you get out of debt while fixing your credit, enabling you to be able to afford to stay out of poverty while paying back your debts.

“…So really the difference between the two is a consolidation company is a company which offers a separate plan to the original companies you owe money too, while a settlement plan is a solution which cuts out part of the debt owed to the original company but you will still have the multiple companies charging you and building up together over a long period of time…” added H. Milla.

Further information about trusted and reputable companies for credit card debt settlement by visiting; http://www.GetRidOfCreditCardDebts.net

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.

December 29, 2017

How To Efile Tax Returns Quickly And Easily

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

Learn more about efile tax return and efile tax returns from our website.

Personal Debt Consolidation Loan: a Tranquilizer for Numerous Debts

Filed under: Loan — Tags: , , , , , , , , , — admin @ 12:46 am


Many persons these days in UK are experiencing a habit of going for frequent loans and debts. These debts at times can accumulate to trouble us. The situation becomes so adverse that it becomes hard for the borrower to manage the timely repayments of those multiple debts. Personal debt consolidation loan has been conceived to avert the consequence of these situations only. It defends you from all the miseries and stress due to these multiple debts. Personal debt consolidation loan simply merges your all small or large fragmented loans in one single unit and makes you liable to one single creditor. Moreover if you desire you can use the money lent for other personal needs as well.

Personal debt consolidation loan: facts and figures

Every UK resident is eligible to personal debt consolidation loan. You can borrow here an amount ranging from £3000 to £ 50000. The nature of personal debt consolidation loan can be both secured as well as unsecured. In case of secured one you need to furnish some collateral against the money borrowed. The interest rate is relatively lower as compared to other traditional loans and ranges from 7.9% to 10.9% APR. However due to the greater influx of lending institutions you are better placed to negotiate. The loaning tenure lies between 3 to 25years. Further personal debt consolidation loan is available to persons with a chequered credit

Personal debt consolidation loan: advantages and suggestions

The competition prevailing among the loaning institutions causes easy availability of personal debt consolidation loan. It’s an absolute profitable decision to go for such loan. Online application is also supported here justifying one’s time and energy. They offer you better search prospective and self evaluation techniques by facilities like comparison tools, debt repayment calculator etc. Personal debt consolidation loan librates your financial stress and improve your credit score. Also many friendly updates like monthly payment reduction, comparatively better interest rates etc. thus unfastening the way to many other low rated loans with easy repayment schemes. . If desired, help of any professional financial advisor or broker can also be taken as he is familiar with the loan packages along with all ifs and buts. Repayment regarding finance debt consolidation should be error free as any delay or default will harshly affect your credit history and enhance the problems to a much greater extent.

Jennifer Morva has been associated with Bad Credit Personal Loans. Having completed his Masters in Finance from Lancaster University Management School, he undertook to provide useful advice through his articles that have been found very useful by the residents of the UK. To find secured loans, personal loans, bad credit loans, Bad credit personal loans visit http://www.debtconsolidationloans.me.uk

December 28, 2017

Debt Consolidation Loans-Getting Off The Credit Card Treadmill


For loads of individuals in a slide down a financial slope, a consolidation loan is a great alternative to bankruptcy and although consolidation isn’t instant, it will improve your credit in the long run. At the end of day debt consolidation is an accepted and often effective approach for managing a burdensome debt load. A consolidation loan, just as any other financial obligation, is something that needs serious consideration and isn’t recommended to be used to make further purchases but is aimed at those who have debts and cannot presently afford to make their monthly payments.
The basic concept of debt consolidation is to merge all of your current debts including loans, credit cards and store cards from multiple creditors into a single new loan. The combining of your debt into only one payment, usually results in a smaller payment that gives you enough additional cash flow to pay off your debt.
Debt consolidation is often advisable when somebody has brought on themselves a substantially large balance of credit card debt, sometimes with numerous credit card providers. The key thing to remember is that the necessity for debt consolidation should not give you a feeling of embarrassment but is supposed to be thought of as a positive, smart and healthy move toward beating your ever mounting high interest rate debt liabilities and getting on with your life.
Debt consolidation will improve your financial life by decreasing your debts to a single payment, oftentimes as much as 50% less than what you are paying out now. These consolidation loans are perfect for lowering monthly payments and allow you to solve the underlying problems of high debt without taking drastic steps such as considering declaring bankruptcy.
Even though debt consolidation is not a very difficult concept, there is one major downside you will want to consider. Consolidating existing unstructured debt into only one personal loan may save on your monthly debt and is often the first step required in the move to living a financially independent life. On the other hand, despite the fact that
your monthly payments will most likely decrease, consolidating your debts may mean it will take longer overall to become debt free. Usually, this longer payback period is not the biggest concern as almost all of those pursuing a consolidation loan are steadily getting underwater with their current monthly obligations anyway. Even if the payment period is extended, the lower monthly payment is worth it. In addition, from a psychological perspective, consolidating monthly bills can give a person a lessening of panic and a feeling of freedom and optimism toward building a brighter financial future. The choice of debt consolidation is available for someone who needs to take control of their fiscal outlook and is a valid approach that many financially struggling people utilize to make headway in escaping the debt trap. Debt consolidation is a method by which you can overcome an ever declining debt situation.
With the average American household having over ten thousand dollars worth of credit card debt, consolidation is one of many solutions to this dilemma and the options available for consolidating your debt have, in the past, not been so easy to take advantage of. At the same time that consolidating your debt offers a great solution and can be very helpful, your research needs to be done properly as any sort of financial strain can add additional stress to our already stressful lives. This stress can repeatedly cause people to make impulsive financial decisions. People who are pondering a consolidation loan should make themselves fully aware of the pros and cons.
An option enabling you to combine all your debts into a single loan, be it secured or unsecured, with reduced payments is a financial must have for a lot of people. At the same time debt consolidation isn’t a silver bullet, for many it’s a welcome answer to all those bills and collection agencies that are calling you. For those who feel like they’ve run out of options, debt consolidation may be the answer for you.

LoanTheMoney is a resource site for those considering debt consolidation or home equity loans. Visit us or check out our article directory for free article distribution.

Mortgage Advice

Filed under: Mortgage — Tags: , , , — admin @ 12:48 am

Finding independent mortgage advice is not as hard as it sounds. It is very important though if you want to make the right decision about which mortgage is the best one for you.

There are plenty of information about mortgages in the public domain on websites, in magazines and tabulated over and over again in mortgage comparison tables. We believe that because there are so many variables within the minefield that is mortgages, that seeking mortgage advice is essential. In fact, we even recommend you speak to independent mortgage advisors or brokers who have access to the whole UK mortgages market because otherwise you might not get advice covering all mortgages available to you.

This is even more important if you are trying to get onto the first rung of the property ladder and are a first time buyer. With the property market being so tough in the UK, there are more and more first time buyer mortgages on the market now and good mortgage advice for your first home is essential.

Since 2004 the giving of personal financial and mortgage advice in the UK has been governed by the Financial Services Authority. Companies or individuals offering personal financial or mortgage advice must comply with the Financial Services Act or they are breaking the law. Many companies offer consultations on an ‘information only’ basis and you would need to formally agree to having requested to be advised on financial matters. Adherence to the rules of the Financial Services Act is called ‘compliance’.

Mortgage advice can be sought from a number of sources:

• A tied mortgage adviser: These work – and will therefore recommend products – on behalf of just one lender.

• A multi-tied adviser: These will recommend products from a limited range of lenders.

• An Independent Financial Adviser (IFA) or Independent Mortgage Advisor: These will recommend products from the whole market.

You are perfectly entitled to ask on what basis your advisor is operating.

Be warned though, that if you go to see an Independent Mortgage Advisor, they will be independent on mortgages but perhaps not insurance – and most homebuyers take buildings insurance alongside their mortgage.

By researching and reading it is relatively easy to glean a certain amount of useful information but by seeking personal mortgage advice from a mortgage advisor, you will be gaining the expertise of someone who knows all about all the different first time buyer mortgages on the market, what special deals are on offer, the peculiarities of the one lender versus another, what the latest mortgage releases are and of course they will always take your personal plans and circumstances into consideration.

As well as verifying who you are, you will be required to provide evidence of major income (your salary) and your major out-goings like car-loans, student loans etc. If you have loans or debts, it does not mean that you cannot apply for a mortgage.

Mortgage advice can be given in a number of different ways. It can be given by phone, email or in person – different advisors work in different ways. These days professionals are pretty flexible. In order to give you proper mortgage advice, mortgage advisors will need to a great deal of information about your personal finances. They want to determine that you can and will be able to make the mortgage payments. The last thing they want is to repossess your property if you fail to be able to make the mortgage payments. They will ask your permission before they give financial or mortgage advice. You will probably need to sign an agreement form saying that you agree to being given mortgage advices as opposed to just mortgage information.

When the mortgage advisor or mortgage brokers has taken all the information from you about what you want and your finances, you might, after agreeing which mortgage and which mortgage lender is appropriate to you, make a mortgage application.

The selected mortgage lender will scrutinise your form and carry outs some checks of their own

Some advisors gain their income form commission they earn from selling insurance policies and mortgages whilst others charge for giving mortgage advice. You are perfectly entitled to ask about what charges will be applicable in your instance.

Don’t be intimidated by mortgage advisors. Though they have trained for a considerable time to be able to offer mortgage and financial advice, they are human, just like the rest of us.

Erin Ryan is a consultant for Helen Adams MD of First Rung Now.

December 27, 2017

I Have The Same Debt But Lower Interest And Smaller Payments? Debt Consolidation Can Make It Happen


Debt consolidation may ease your financial life by lowering your debts to only one payment, frequently as much as 50% less than what you are paying out now. These consolidation loans are a great solution for reducing monthly payments and enable you to solve the basic problems of high debt without being forced to take drastic steps such as filing bankruptcy.
With the average American family having more than ten thousand dollars worth of credit card debt, consolidation is one of many solutions to this dilemma and the options available for consolidating your debt have in the past, not been so easy to take advantage of. Even as consolidating your debt offers a great solution and can be very helpful, your research has to be done properly as any sort of financial strain can add additional stress to our already stressful lives. This stress can often cause people to make impulsive financial decisions. Those who are thinking about a consolidation loan have to make themselves fully aware of both the pros and the cons.
A consolidation loan, like any other financial obligation, is something that entails serious consideration and should not be used to make even more purchases but is designed for those who have debts and cannot at this time afford to make their monthly payments. The bottom line is that debt consolidation is an accepted and often useful move toward managing a burdensome debt load. For loads of individuals in a slide down a financial slope, a consolidation loan is a great alternative to bankruptcy and although consolidation isn’t instant, it will improve your credit in the long run.
The main idea of debt consolidation is to combine all your existing debts including loans, credit cards and store cards from multiple creditors into one new loan. The consolidation of debt into only one payment, by and large results in a lower payment that gives you enough breathing room to pay off your debt. The leading thing to remember is that the necessity for debt consolidation should not give you with a sense of embarrassment but should be thought of as a positive, smart and healthy approach to regaining control over your steadily increasing high interest rate debt liabilities and getting on with your life. Debt consolidation is often advisable when somebody has taken on a considerable sizeable balance of credit card debt, oftentimes with numerous credit card companies. It is a method by which you can defeat an ever declining debt situation.
Debt consolidation is a choice that can be obtainable for anybody who wants to take charge of their financial future and is a logical method that many financially struggling people utilize to get out of the debt trap. Even though debt consolidation is not rocket science, there is one potential downside you need to consider. Consolidating existing unstructured debt into one personal loan may save on your monthly bills and is often the first step required in the move to living a financially independent life. On the other hand, despite the fact that your monthly payments will likely decrease, consolidating your debts may mean it will take longer overall to achiever debt freedom.
Generally, a lengthened payback period is not a big concern as the majority of those pursuing a consolidation loan are en route getting deeper and deeper with their current monthly payments. Although the payment period is extended, the smaller monthly payment is worth it. In addition, from a psychological perspective, consolidating monthly bills can give a person peace of mind and a feeling of freedom and optimism toward building a bright financial future.
An option that allows you to combine all your debts into a single loan, be it secured or unsecured, with reduced payments is a financial necessity for many. While debt consolidation isn’t a silver bullet, for many it’s the only answer to all those bills and collection agencies that are calling you. For those who feel like they’ve run out of options, debt consolidation may be the answer for you.

LoanTheMoney is a resource site for those considering debt consolidation loans or home equity loans. Visit us or check out our article directory for free article distribution.

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