Finance, Loan, Debt and Credit.

March 12, 2018

Take a Careful Approach on Debt Consolidation

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

Loans in the real life can help out solve so many financial issues in a person’s life. However, it doesn’t end there. Loans must be paid back and if they are a number of them taking care of several issues then it becomes hectic to pay them. Debt consolidation can somehow sort you out on this. Debt consolidation is all about taking out one loan to pay other loans that may exist. Debt consolidation may result to a lower interest rate and also give you a chance to pay one unchanging interest rate and the main advantage is that you will concentrate to pay only one loan.

With debt consolidation, secured loans go hand in hand with using an asset as a collateral probably a car, or a house. If you have a number of unsecured loans you can still go for debt consolidation with an unsecured loan too. It is important to know that when a collateral is used to secure a loan you may enjoy lower interest rates than when no collateral is used. This is because the lender will not be at risk in loosing his money after debt consolidation and may sell off your asset so that he can regain it. As a result you will enjoy low interest rates that are not putting you under any kind of pressure.

Debt Consolidation is well off advised on someone using credit cards since they could hold quite large interest rates than even the unsecured loans. For credit card users if you have a property like a house or a car you may get the advantage of lower interest rates if you used the property as collateral. This way you reduce the total cash flow and interest rates giving you a chance to pay sooner with fewer amounts. Remember that the use of credit cards should be controlled with a lot of efforts since many people are tempted to use a credit card to purchase things unintended for especially those who love window shopping; they are tempted to go for impulse buying. If you spend more than your income with your credit card then you are in for fire and are only adding debts to your credit card. After debt consolidation of your credit cards, it does not mean that all is well. Control the use of your credit card to avoid growing debts.

The worst that would happen to you is to fall prey of predatory lending. Predatory lending is where companies take advantage of refinancing and charge very high fees on debt consolidation rates in situations where the consumer has high interest debt balances. Some devious companies will wait until the consumer is put in a red corner and what remains is to refinance in order to consolidate and pay the unpaid bills. The worst comes when the consumer fails to refinance and comes to a near loss of their only asset so they will do anything to pay up any amount allowed to complete debt consolidation just to secure this asset. Due to this pressing situation the client have no time to go for another lender with lower fees and may not even be aware they exist.

Debt consolidation needs careful approach. However life must continue and loans must be paid. So going for debt consolidation might save you many dollars than when you decide to pay up the many loans you have at hand each holding its own interest rate.

Poly Muthumbi is a Web Administrator and Has Been Researching and Reporting on DEBT for Years. For More Information on DEBT CONSOLIDATION, Visit Her Site at DEBT CONSOLIDATION

Poly Muthumbi is a Web Administrator and Has Been Researching and Reporting on FINANCE for Years. For More Information on DEBT, Visit Her Site at ONLINE FINANCIAL PORTICO

June 24, 2012

Best Credit Card Debt Settlement Companies – Be Very Careful

The credit card debt settlement industry has become a monumental one. With millions of people who struggle every month to pay their bills, a debt settlement company can be appealing to almost anyone.

Unfortunately, for every one legitimate company out there, there are hundreds that are only out for your money. Here are a few things to look for when it comes to choosing a company that won’t run to the bank with your cash and leave you hanging.

Beware of Promises

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

“…If you run across a settlement company that guarantees you will be free from debt in 6 months, be very weary. This sounds great, but when you break it down it doesn’t make sense. For example, if you are $10,000 in debt, and the settlement company is able to reduce the debt by 50%, that still leaves $5000 for you to pay back. To do this in just 6 months you would need to pay over $800 a month to your creditors. Chances are, if you have that much money each month to sink in to bills you wouldn’t need to settle your debt. Realistically it can take 2 years or more to clear your debt…”

Beware of Fees

It’s pretty standard in the industry to collect anywhere from 10-15% if the debt in fees. The tricky part of this, it’s not the debt they’ve managed to settle. The fee is based on the total amount of debt they are negotiating. Even if the agency is able to get that $10,000 debt down to $5000, you will still pay the agency the 15% fee based on the $10,000. That’s $1500 in fees that you must pay that your creditors will never see. While all of these companies charge fees, you’d be doing yourself a disservice by not finding one with low fees.

Beware of Non-Communication

“…Basically a debt settlement works by having you save up money to make a lump sum payment to your creditors. A creditor is more likely to accept a settlement if you have at least 40-50% of the original debt available to pay them. The credit card debt settlement company will set up a savings account for you, and money is automatically deducted from your personal checking to plop in to this account. While you are saving money for the pay-off, your creditors aren’t going to go away. A reputable company will work with your creditors. This will help stave off the phone calls, and worse, the wage garnishments. If a company isn’t willing to work with your creditors, you should run away…” H. Milla added.

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.

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