Finance, Loan, Debt and Credit.

March 27, 2016

The Truth about Low Interest Bill Consolidation Loans

Credit cards can easily get you in trouble. If you charge too much and don’t pay what you’ve charged each month, before you know it your credit card balance is enormous. And depending on how high your interest rate is, it can get even bigger if you don’t aggressively tackle your balance.

One solution to managing out-of-control credit card bills and other debts is through low interest bill consolidation loans. These types of loans are designed to help you get a better handle on your debt. Basically you get low interest bill consolidation loans to pay off delinquent debts or balances that are on high interest credit cards or other loans. You should only need to get one loan if you qualify for one that has the perfect interest rate. These types of loans are also good for getting you out of an erratic adjustable rate loan where the interest rate fluctuates drastically.

However, a low interest debt consolidation loan can only do so much. It doesn’t reduce your debt. It merely resets your interest rate so you can start tackling it aggressively. You need to establish a plan of attack for paying down your debt. You can’t just roll it over into a bill consolidation loan and let it sit there. It’s still going to grow. In order for a consolidation loan to work for you, you need to:

* Find ways to cut back on your expenses

* Pay your monthly bill consolidation loan payments in full and on time

* Limit all excess spending

Various Types of Low Interest Bill Consolidation Loans

A secured bill consolidation loan is one where you provide collateral for the loan. Collateral is anything the lender can redeem if you default on your payments. With collateral, you’re more likely to get low interest bill consolidation loans because you’re putting up something incase you do get behind on your payments.

An unsecured bill consolidation loan is one where no collateral is provided which often results in a higher interest rate. Also with an unsecured loan, lenders tend to lend you an amount that’s less than the total amount you owe to other creditors.

If you own a home, you can get a refinance loan to get a lower interest rate mortgage AND pay off existing debt. Depending on how much you owe, this might increase your mortgage payments instead of lowering them like refinancing typically does. This also puts your house on the line if you don’t pay what you owe.

Home Equity Line of Credit (HELOC)

If you’re a homeowner and your property has drastically increased in value, a home equity line of credit (HELOC) might be the right solution to consolidate your bills. However this can also put your home in danger. So before you decide on this option, check with a lender to see if it works for you. One way to figure out if a HELOC is the way to consolidate debt is to first figure out how much equity you have in your home. To do this you must subtract your remaining mortgage payment from the average market price for your home at the current time. The remainder is the equity you have in your home. But before you jump, you still need to consult a loan officer or home equity line professional.

If you’re looking into low interest bill consolidation loans, you need to weigh all your options carefully. Learn about each option and then figure out which one would work best for you.

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May 27, 2013

Debt Consolidation- What to Look For

Asking for help with your debt is hard enough, it shouldn’t be made any more difficult by dealing with a consolidation company less pleasant than the actual creditors themselves. When seeking financial help many underestimate the importance of shopping around and finding the right company for you.

Quick fix debt consolidation services are often synonymous for bankruptcy and rarely actually offer credit card debt relief. Caution should also be taken with any company claiming to offer free debt consolidation, as we all know, there is no such thing as a free lunch. Many of these companies target people with ads claiming to offer unsecured debt consolidation but fail to mention that consumers will have to pay inflated fees and expensive interest rates for unnecessary services.

Though there are many legitimate lenders out there, unsecured debt consolidation loans or debt consolidation services that promise to erase pr eradicate bad credit records for a small fee, can actually be a warning sign for fraud. Anyone claiming that debt can be cleared within 24 hours may have tricks up their sleeves you don’t want to be a part of. Be suspicious of anyone asking for an “advance fee” to guarantee loan approval; no legitimate debt consolidation loan will ever be guaranteed. However it is important not confuse advance fees with application fees. And naturally, walk away from anyone offering bad credit debt consolidation through creating a new identity (i.e. anyone suggesting a new social security card is not working in your corner). Finally, don’t waste money on debt consolidation seminars where people often sell “kits” containing items, which look like checks but are in reality, completely worthless regardless of how much you make it out for.

Another word to the wise, whether seeking student loan debt consolidation or just looking for a debt consolidation quote, check to see if there are any debt consolidation laws specific to your state. For example Florida debt consolidation may offer different exemptions then those allowed in California and should be brought to the attention of your debt consolidation counselor. Keep in mind you have the option of securing a mortgage loan or home equity line of credit but these come at a higher risk to the borrower as these loans require your home as collateral.

Always keep in mind that credit card debt consolidation is here to take the stress away, keep debt companies off you back, and help to rebuild your credit. They should work with you on both your payment and time schedule and offer customized debt consolidation help, tailored just to your situation. So don’t just settle for the first company that comes along with a free debt consolidation loan that seems too good to be true. The right debt consolidation company should be willing to partner up with you and answer any questions you may have while disclosing all fees up front. May you have the best of luck in your search for the best debt consolidation company for you as you work through a trying phase of life.

May 20, 2013

Credit Card Debt Consolidation Loan Frees From Debit Card Debts

Carrying credit cards has become more of a status symbol nowadays rather than a necessity and a provision. People tend to overspend and as a result create a problem for themselves. Pending debts create a big trouble for borrowers. A credit card debt consolidation loan can solve their problems.

Many loans catering to specific needs of the borrower are available in the market. One such need is the need for consolidation of debts created due to credit card usage. To remove these debts, there is a credit card debt consolidation loan.

Credit card debt consolidation loan combines all the debts of the borrower and pays them off. The credit card debt consolidation loan is taken at a low rate of interest thereby saving money on the high interest debts of the credit cards.

Credit card debts are created mainly due to the following reasons:

•When the person tends to overspend without taking overdraft facility.

•When the person is obliged to pay high interest and penalties on credit cards

•When the person is using number of credit cards and he finds difficulties in repaying each of themCredit card debt consolidation loan is available to people with good and bad credit history. Although bad credit borrowers are offered a slightly higher rate of interest, competitive rates can be obtained by thorough research and comparison.

There are two ways of obtaining a credit card debt consolidation loan. Through the secured way, the borrower can avail a higher amount at low rate by pledging collateral. In unsecured loans, however, the borrower need not pledge collateral. Instead he has to furnish basic details like employment details, age proof, residence proof etc.

Online search proves to be a great help in searching for a credit card debt consolidation loan. Comparison of rate quotes and terms and conditions helps in choosing the best deal out of all the offers.

Credit card debt consolidation loan helps in reducing the burden of the borrower by paying off the credit card debts.

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