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How Do I Consolidate My Credit Cards?

February 7, 2014 by penn

When you have several credit cards with balances it leads to further trouble because you have to pay off all those separate payments and interests which if not dealt efficiently can pile on to an enormous amount of debt and stress. You can adopt a debt snowball or debt avalanche approach; though they are the most commonly used techniques to get rid of the debt but it will still feel as if payments and higher interest rates are leaving you and your resources drained.

Consolidate My Credit Cards

If you are one of the millions of Americans going through a rough patch in your life due to serious financial troubles because of debt then what you need are consolidated credit solutions. In order to manage your credit card debt and take the debt off your neck you need to consolidate your credit cards.

How Does Credit Card Consolidation Work?

Credit consolidate solutions help you to take control of your debt and manage your finances more efficiently. These solutions provide you with right financial strategies and resources so that you can pay off your debt successfully and quickly and secure your future.

With credit card debt consolidation you consolidate all your bills into one payment. You take all your balances and put them in one place which means you have to deal with only one payment and its interest. This can allow you to manage your debt efficiently in no time because you are not dividing your payments. When credit card debt causes problems for your budget, you need to find a way to eliminate the debt quickly to avoid damage to your credit and bankruptcy. To consolidate your credit cards, there are three main options to consider:

Get a debt consolidation loan:

You can acquire a debt consolidation loan; you can combine all your existing debt and credit card loans into one regular payment. You can take a larger loan from a reputable and trustworthy company with which you can pay off your credit card balances. Now you to worry about only one payment and one interest which will help your finances and efficiency of your payments.

Balance transfers:

You can use a credit card balance transfer to consolidate your credit card debt (and maybe even get a 0% APR for a short period of time) or you can get personal loan or a home equity loan.

Debt consolidation companies:

It is advisable to be cautious when dealing with debt consolidation companies as they might charge you excessive fees while lending you the loan and also make sure the company you are dealing with is reputable. Some companies will advertise as debt consolidation” or “consolidation solutions” which is more like a management plan for debt payment or a debt settlement.

Consolidating your credit card is all about making situation more manageable and stress free. With the right guidance and approach you can reduce what you are paying overtime and will also help you in paying off you debt swiftly and diligently. Living a debt-free life is a distinct possibility. All you need is discipline and a solid financial plan.

Peer to Peer Consolidation Loans

One way of consolidation is by going to a peer-to-peer lender like Prosper or LendingClub. These lenders help individuals by matching up the individuals who plan to invest and earn from an investment with people needing low cost consolidation loans. The positive aspect of this type of an arrangement is that the interest rate on peer to peer loans is low as compare to the loan you get from a bank.

You can learn more about peer-to-peer consolidation loans and other types of debt consolidation, by visiting Debt Consolidation resource center.

Working Out Your Own Plan

If you’re in search of other available possibilities other than debt consolidation for your credit cards you can put together an automated plan that feels like debt consolidation if it’s not. There are tools that can help you to find solutions for your debt problem. They adopt a more individualistic approach by helping you create a personalized strategy to assist you in pay off you debt quicker. You can use these tools to pay off your debt without managing the payment on your own. The advantage of this situation is you don’t have to acquire a new loan nor worry about the credibility of the companies you are dealing with.

The important thing is that you formulate a manageable plan which will help you to get the debt off your neck in no time while lowering your payment rates at the same time. The only drawback to consolidate your credit card is that you can free up your credit cards again. If you want to live a debt free life you need to change your financial behavior to save yourself from economic troubles.

Filed Under: Credit Card, debt consolidation, debt consolidation loans Tagged With: Consolidate Credit Cards, Consolidate Your Credit Cards, Credit Card Consolidation, Credit Cards

The Best Student Loan Consolidation Options

October 18, 2013 by penn

The Best Student Loan Consolidation Options

You are finished with college, have a degree and a career. Along comes the family and there is a hardship that makes it impossible for you to pay the student loans. Your options can include student loan consolidation. This puts you on the search for the best student loan consolidation company.

To think of consolidations you need to have an outstanding balance on your loan. Student loans consolidation programs can help to reduce the interest so that you are not paying on it for many years. Student loan consolidation repayment plans are set up for people who have more than one loan and with multiple lenders.

The programs are designed to work similar to other debt consolidation programs. You are able to take all the loans and pay them off at once. This can only be done because you will be replacing it with a larger single loan.

Benefits for Consolidation

There are many benefits to student loan consolidation programs; one is the convenience of the programs. You are able to only make one payment a month, only have one due date, and are unlikely to be late.

The ability to have flexible payment options can be important to an individual in a consolidation program. There might even be options to defer the payments, as well as many different options to repay the loans when you fall under financial hardships.

It is also important to know that you are able to save money when you are using a consolidation program. They are able to negotiate with the creditors in order to reduce your balance as well as adjust your interest rates. That can help you to have less monetary obligation in the end.

The student loans that you have currently are under most circumstances at a very high interest rate, as are many of the loans that we get for the purpose of education.

Where Do I Go?

There are several different places that a person can search out for the best student loan consolidation options.

The federal government offers some repayment programs for student loans. These loans tend to have a much lower interest rate than traditional loans. This can be beneficial because in the end you will be paying less money.

When looking into the best student loan consolidation you might want to look into your bank for a private loan. This can be an option because they currently hold your accounts and you may be able to find good interest rates through them. Many banks will hold discounted rates for those individuals who already have bank accounts through them.

There are companies that are dedicated to only the handling of student loans. This can be very helpful when looking into the consolidation of some private student loans. When searching for the best student loan consolidation option remembers that these companies are designed to make a profit. So even though they are reducing your interest, they are also gaining a fee for handling your loans. There are times that one of these companies do offer the best option for your needs, just know that there is nothing wrong with being choosy.

Helping You Get Organized

Using some of the free online calculators you are able to determine the value of your current loan as well as any potential loans you may receive.

You are able to find the Prime Rates of interest online as well. This will let you know what that is being looked for interest during the time that you are trying to reorganize your loans. You can also use various search terms in your browsers search engine like “student loan consolidation and interest rates”.

Remember that if you have a federal loan you can only use a federal consolidation program. Whereas if you have private student loans they will need to be dealt with through a private student loan company.

Best Options for You

Once you have figured out what kind of loan you have, what the interest rates are you are able to look into the best loan consolidation for you. You are able to know what you are searching for when looking at each of the offers to determine what you need. It may be the lowest interest rate no matter the terms, or the least amount of repayment time no matter the rate is. For others it’s a mix of both, finding the right balance of interest rates and repayment time is what most individuals go after. Don’t count out the free programs, they can offer some low rates that can vary on terms as well.

The internet can be very helpful with looking into loan information. It can help you find the best student loan consolidation program or company. Don’t settle for anything more than what you are doing now. If you have trouble you can always for to a student loan counselor for help.

Filed Under: debt consolidation, debt consolidation loans Tagged With: Best Student Loan, Best Student Loan Consolidation, Loan Consolidation, Student Loan

Own Your Degree with a Federal Consolidation Loan

October 10, 2013 by penn

Own Your Degree with a Federal Consolidation Loan

Even wonder why you would need a Federal Consolidation Loan? Well, as each year dawns into a new one, higher education is costing that much more with each passing semester. Not only do universities find ways to increase yearly tuition despite objections from the student body, the cost of living rises and the cost of school supplies as well….students just don’t catch a break. By the time you are done with the last semester of your last year, you are neck deep in debt and faced with few job opportunities as a new grad. But, the government understands your pain (a little bit) and has come up with Federal Consolidation Loans to help pay off your education debts.

What is a Federal Consolidation Loan?

A Federal Consolidation Loan is built to help new graduates and their families pay off education loans. Most loans from the government- federal and state- as well as most private loans can be consolidated into one federal consolidation loan. With so few ineligible loans, it is very likely that many of your education loans can be neatly consolidated into one loan. Unfortunately, though, while you can apply with your parents to consolidate loans, you may not be able to consolidate loans with your wife as a married couple.

Why Federal Consolidation Loan?

There are several reasons you should consider a Federal Consolidation Loan:

  • Several Creditors: Many of us who have education loans know that you really have not one loan with one creditor, but several of them- all of which come due at the same time. With a consolidation loan, you can combine all of them into one loan. So, one monthly payment only- to one creditor. In addition, combining several loans may also reduce your monthly payments.
  • Interest Rates: Interest rates for education loans can be quite high and when several education loans come due at once, managing interest rates can be challenging. But, when you consolidate with Federal consolidation loans, you stand a good chance of getting a good interest rate for all your outstanding loans. Interest rates on education consolidation loans cannot exceed 8.25%
  • Length of Repayment: Well, the longer duration of your loan, the more money you will be paying your creditors. More monthly payments, more interest and more principal. So, if you’ve got a long way to go on your loan repayments, consider a federal consolidation loan to keep your payments, interest rates and debt to a minimum.
  • Flexible Repayment: We can’t always predict the future, so federal consolidation loans also have built in flexible repayment options to pay back your debt.

Where to Get a Federal Consolidation Loan?

It is fairly easy to apply for a federal consolidation loan. Visit http://loanconsolidation.ed.gov/borrower/bapply.html and get directions on how you can apply online, over the phone or using a paper application to apply for and find out if you are eligible for a consolidation loan. You can make changes to your application, and find your application’s status online.

When to Get a Federal Consolidation Loan?

While you can start looking at options while you are still in school, most federal consolidation loans require you to be out of school before loan consolidation can begin. In addition, most education loans also offer a grace period after you are out of school- a short period of time when you do not have to pay back your loan and concentrate on finding a job. In order to qualify for a consolidation loans, you also have to be past the grace period.

Who Qualifies for a Federal Consolidation Loan?

Here’s who can qualify for a federal consolidation loan:

  • You must have at least one Direct Loan or Federal Family Education Loan
  • You must have completed your education and graduated from school
  • Your loans must not be in ‘in school’ status- meaning, in the grace period of loan repayment
  • You must be able to make satisfactory repayment agreements
  • You also must not have another direct consolidation loan to your name.

Do you meet all these requirements? You may be eligible to apply. In addition, you have several other options if you are in the Armed forces- you may qualify for loan forgiveness or for no accrual of interest while you are in active duty.

Consider, though, that once you have approval for a consolidation loan, the consequences for defaulting on a federal consolidation loan can be severe too:

  • The department of Education can demand that you pay back what they paid out to cover your loans in full
  • The department would also be able to withhold any Federal income tax refunds you may be eligible for
  • It can have a detrimental effect on your credit rating as the department of education would report these defaults to all credit agencies

So, start owning more of the degree YOU worked so hard for with a Federal consolidation loan. With only one loan and reasonable interest rates, you’ll be on the way to being free of your education debt in no time.

Filed Under: debt consolidation loans Tagged With: Federal Consolidation Loan, pay off student loan, Student Loan

Debt Consolidation in Pennsylvania

September 17, 2013 by penn

debt consolidation in pennsylvania

There are people all over the world that are in financial troubles. However, each state offers different challenges regarding debt than the one before. Debt consolidation in Pennsylvania can be different than in other states. Here are some things to think about when looking into debt consolidation.

Debt consolidation is the best option for debt relief that exists at this time. Debt management is when you replace all your current debts with a single debt. This allows you to pay off the one debt with a low interest rate over a longer period of time. You can achieve debt consolidation an individual can use either a consolidation loan or enroll with a debt consolidation company in Pennsylvania.

How Debt Consolidation in Pennsylvania Works

Debit consolidation works by gaining a debt consolidation loan. You can take out a low interest loan then use that money to pay off all the other creditors that you have. This will take you from having many creditors to only having the one consolidation loan creditor.

The low interest loans that you can achieve will give you the ability to lower your monthly payments. Providing you will affordable way to use debt consolidation in Pennsylvania. These loans can be secured or unsecured depending on what you choose.

Unsecured loans do not require any form of collateral when taking out the loan. However, you might find these loans to be a little higher in interest rates.

Secured loans are loans that require collateral of some kind. This may be in the form of a house, car, jewelry, or any other asset that you may possess. Since collateral reduces interest rates, these are the type of loan preferred by those going through debt consolidation in Pennsylvania.

Debt Consolidation Company

If you are unsure about how to go about a debt consolidation, or you just don’t want to do it alone. There are companies that offer debt consolidation services.  The debt consolidation can work in your favor in many ways.

  • The debt consolidation company will be able to help assess your debts as well as your finances to help you gain the best results from the proper type of program.
  • The debt consolidation will have an attorney send a letter to your creditors telling them to no longer communicate you and that your debt issues will be facilitated by the debt consolidation company.
  • Your creditors will then be communicating with the negotiator on your behalf regarding eliminating any penalties while also trying to lower your interest rates.
  • Payment plans will be created within your budget after communicating the new loan information. You will be given a fixed amount to the debt consolidation company each month.
  • The debt consolidation company will then take the payment you make every month and distributed to your creditors. This process will continue until you have paid off all your creditors.

Whenever making a decision on a debt consolidation option in Pennsylvania you need to be sure that the company is reliable. Search for accredited companies as this is a symbol of the company’s reliability.

Which Debts?

There are several types of debt that can use in a debt consolidation. Debt consolidation in Pennsylvania is available through 5 different types of debt.

  • Private Student Loans
  • Credit Card Debts
  • Personal Loans
  • Payday Loans
  • Medical Loans

There are specific laws that concern each type of debt, however be sure to know the specific laws. This will prevent you from making any major mistakes as well as protect you from consolidation scams.

Your Credit Score

Debt consolidation is designed to help you pay off your entire borrowed amount, creating the least impact to your credit score. When taking out the consolidation loan your score goes down immediately. No matter what, it is important to be aware of a few things that can hinder your credit score.

  • Frequent application for credit can hinder your credit score.
  • Closing your accounts to fast after pay off can cause your score to drop.
  • Missing payments can affect your credit score as well as your ability to continue participating in program.
  • New loans can lower your score while in the consolidation program.
  • Balance transfers are not a good idea while in this program. If you fail to pay off in the trial period you can increase your interest rates and decrease your credit standing.

Remember that everything you do can affect your credit score so being safe and following your plans can help you keep your credit score in positive levels.  Debt consolidation in Pennsylvania can offer you some wonderful rewards like making a single monthly payment, freedom from creditor collection calls, improving your credit scores, as well as gaining lower interest rates on your payments. Choose the best choices for you no matter what others say.

Filed Under: debt consolidation, debt consolidation loans Tagged With: debt consolidation, Debt Consolidation in Pennsylvania, Pennsylvania Debt Consolidation Company

Pennsylvania Debt Consolidation Companies

August 11, 2013 by penn

Pennsylvania Debt Consolidation Companies

In today’s “easy credit” world, both individuals and families too often fail to notice a gradual increase in the ratio of monthly debt payments to the money left over after paying necessary living expenses. Suddenly they find that they need to take on additional debt each month to just stay afloat. Humiliating calls from collection agencies add to the stress. In desperation, many reach out to the first “painless quick fix scheme” the advertizing media brings to their attention. The long-term results of these hasty decisions are often disastrous.

The good news is that there really are many excellent Pennsylvania debt consolidation companies. The trick is to find the one that is best for you.

A well run debt consolidation program connects you with a professional counselor who works with you to understand how you got into debt, and how much you actually owe (including interest payments). The counselor then recommends a budget that covers reasonable living costs, and still provides a set amount for debt consolidation payments. The counselor will take the time to make sure you understand the importance of sticking to your new budget, and may refer you to sources of additional financial management assistance and training. The debt consolidator then negotiates payment terms with each creditor so that the combined payments fit your budget, and pays each one on your behalf from a single payment you make to the debt consolidation company.

If you think that a debt consolidation program might be right for you, finding the right program from the many available is the first important step.

Get Started Finding The Right Pennsylvania Debt Consolidation Company:

Allow yourself plenty of time to select the best Pennsylvania debt consolidation company for your needs. The decision you make will have repercussions for years to come.

  • Get referrals for both reputable debt consolidation companies, and also for experienced individual counselors working for any of the recommended firms. Friends, relatives, or a local non-profit consumer credit counseling organization, are all useful sources of referrals.
  • For each recommended debt consolidation company, write down whatever publicly available information you can gather on costs and payment terms for debt consolidation and other services. Other services to look for are money management classes, take home budget management aids, and planned follow-up visits. Use an individual sheet of paper for each recommended company. Then call or visit each company to verify the information you have collected.
  • As you approach a final decision, check to see which companies measure the quality of their service by conducting follow-up contacts with clients at specific intervals after services are delivered, and recording the results of those follow-up contacts.
  • And finally, make sure that the company you choose agrees to assign you to one of the recommended counselors you identified at the beginning of the process, or at least agrees to let you select a qualified counselor with whom you will feel comfortable sharing personal information.

 

What to Watch Out For When Selecting a Pennsylvania Debt Consolidation Company:

Here are some things to watch out for to reduce the chances of becoming one of the millions of people for whom the decision to sign up for debt consolidation ends up making a bad situation far worse:

  • Blanket “guarantees” of specific outcomes offered before examination of your debt situation
  • Unwillingness to provide a comprehensive fee schedule, or asking for a high initial cash payment
  • Evidence that debt consolidator compensation is commission based
  • Failure to provide a clear and specific disclosure document identifying potential downsides of debt consolidation
  • High pressure sales tactics
  • Unwillingness or inability to provide information on the aggregate success rate of prior clients seeking to get out of debt
  • A very short track record. (The firm you are looking at may be completely legitimate, but remember that the debt consolidation business has always attracted its share of unscrupulous operators. It may take months or years for regulators to weed them all out.)

 

Once You Have Selected A Pennsylvania Debt Consolidation Company:

A few things to remember once you begin the process:

  • Make sure you fully disclose all of your debt obligations, even if doing so causes some personal embarrassment.
  • Be honest about your future earnings expectations, and the degree of confidence you have in those expectations.
  • Make sure you and your family understand the budget proposed by the debt consolidator. If the budget is unrealistically tight, and you subsequently fail to live within it, your debt consolidation plan will not work.
  • Take the time to be sure you understand every sentence in your debt consolidation agreement before signing. Legitimate debt consolidators will appreciate your willingness to ask questions.
  • Take full advantage will of all the financial management training opportunities recommended by your debt consolidator.
  • If your financial circumstances change for better or worse during the course of the debt consolidation program, be sure to let the debt consolidation company know. Temporary or long-term changes in the plan might be called for.

Filed Under: debt consolidation loans Tagged With: Consolidate Debt in Pennsylvania, debt consolidation, Debt Consolidation Companies in Pennsylvania, Pennsylvania Debt Consolidation Companies

Is It Better To Consolidate Or Settle Your Debts?

May 31, 2013 by penn

Is It Better To Consolidate Or Settle Your DebtsAre you torn between consolidating and settling your debts? Both of them can effectively get yourself out of debt but you have to realize that one of them suits you best. The key to maximize the benefit of the two is to choose the right one.

But how do you make the right choice? What are the factors that will tell you which is better than the other? The answer is simple: you need to know the process of both and what they can provide you in terms of a debt solution.

Debt consolidation loan involve applying for a loan that will allow you to pay off the other debts that you have. The key is to get a low interest loan that will lower your monthly payment. Because of this lower payment, you are able to bring more breathing space for your budget. That will allow you to have more funds on entertainment activities or to boost your savings.

Debt settlement, on the other hand, involves negotiating with your creditors. You will haggle with the creditor so they will allow you to pay only a portion of what you owe and have the rest forgiven. This debt reduction will get you out of debt in 2-4 years, which is faster than debt consolidation loan that can take up to 5 years to complete.

Now that you know what is involved, how will you know which is better? It helps to begin by looking at the type of debt that you owe and your ability to pay them off.

For instance, if you have a steady job and you only have a small deficit on your debt payments, you should be fine with debt consolidation loan. But if you have no income or if it is too small to meet all your requirements, then you may want to opt to settle your debts instead. While debt consolidation will lower your monthly payments it will keep you in debt for a longer time. Not only that, you could end up paying more in terms of the interest amount.

Another consideration is when your credit score is not in its best condition and you do not have a collateral to guarantee a low interest rate. If so, you have to skip debt consolidation loan and go for debt settlement. But if you have a high score and you want to keep it that way, go for the former. Settling your debts will involve defaulting on your payments and that can ruin your score.

If you also have mostly secured loans, you cannot use debt settlement to solve them. It can only work on credit card debt, personal loans, medical bills and other unsecured loan types. Debt consolidation loan on the other hand, can help with almost any type of debt. It can even help with student loans but you only get a few options as to where you can get financial assistance.

These are the facts that you have to consider when you are choosing between the two. Analyze your financial predicament carefully to know which option best suits your needs.

Filed Under: debt consolidation loans, debt relief Tagged With: debt consolidation loan, debt relief options, debt settlement, debt settlement vs debt consolidation loan

What To Do After The Approval Of Your Loan For Debt Consolidation?

May 24, 2013 by penn

There are many pitfalls in debt consolidation loan. This article is not meant to bash this debt solution. In fact, we’re here to help you make sure that you avoid all those pitfalls. If you got yourself in debt, that means you are not in the best position to manage a huge amount of money.

What To Do After The Approval Of Your Loan For Debt ConsolidationDebt consolidation loan is all about getting a huge fund to help you pay off what you owe. The idea is to combine your debts by paying off the others with this one loan. That will leave you with only one debt to deal with.

One of the temptations that you will encounter in this debt relief program is when you get that loan approval. Since it is a big amount some people are tempted to use it on something else – at least a part of it. This is not right. So to help you override this feeling, here are the things that you must do once you get the approval on your loan.

Before you can even think about the temptation of using the loan to buy something expensive, go to your bank and pay off the debts that you intended to close. Whether they are credit card companies or lenders, you should settle what you owe immediately.

But after that, there are a couple of things that you have to do.

First of all, keep your credit cards. This is one of the temptations that you have to avoid. Once you have paid off your cards, they will all have zero balances. You want to keep yourself from spending through these cards and thus increase your debt.

Next is to arrange a payment plan. This should have been done before you applied for the loan. However, there is no harm if you haven’t. But you have to do it now. Start with your budget plan. Indicate your income and expenses. When you are plotting your expenses, identify the wants and the needs. You need to rank your priority expenses to ensure that you are putting money into your priority list. Make sure this single debt payment is included in your budget so you will never forget to pay it. Put up reminders that will ensure this payment will always be met.

Lastly, you may want to build up your reserve fund. Growing your savings is a very important part of staying out of debt. Sometimes, people do all the right decisions when emergency strikes, they are simply not prepared for it. Any immediate and sudden expense will have to be borrowed if you do not have the savings to finances it.

Increasing your income maybe a good idea to help make this possible. If you have just enough for your expenses and your debt payment, then you need to do something to increase your income. The option of cutting back on expenses is there but that is only limited. Increasing your earning may be more appropriate to quickly grow your savings.

Follow these steps and you are sure to make debt consolidation loan a success in your financial life.

Filed Under: debt consolidation loans, debt relief Tagged With: budget plan, debt consolidation loan, debt freedom, debt payment plan, debt relief

What You Need To Know About Payday Loans

May 1, 2013 by penn

What You Need To Know About Payday LoansIf you are thinking about getting payday loans to tide you over difficult situations, you need to understand the pros and cons of it first. This is one option of people in debt – especially those who wish to use debt consolidation loan but are burdened with low credit scores. People who are desperately in need of money yet have bad credit reputations are forced to make drastic decisions and opt for payday loans.

The thing about these loans that make it appealing is the fast approval. Regardless of your credit score, they can approve of your loan even within minutes or hours after your application is submitted. Of course, this convenience has a catch. You have to pay back these loans immediately – usually as soon as your next paycheck comes in (thus the term payday loans). Not only that, you have to deal with the very high interest rate – usually around 400% APR. The fees involved in a payday loan is also quite high. This is probably why a lot of financial experts discourage people from using this as a debt solution.

Payday loans can be a big pitfall for consumers who get it for immediate debt relief. It does not really solve the problem of your debts. You have to understand that this type of loan should only be a one-time temporary option. It should not be your main solution for your debts. You need to partner it with a more concrete plan to get out of debt or your financial crisis.

In truth, payday loans may not be the smartest debt solution. Unless you are sure that you can pay off the short term loan, you need to keep your eyes open for other alternatives. There are other programs that you can use to as a solution for your debt and may even get you better results in the long run.

If you want to use debt consolidation but you have a low credit score, you can actually opt for debt management. They will allow you to make lower monthly payments so you have the cash to use for your other expenses. With the freed up funds, you can start to grow your savings so that you have a significant amount of money in case of emergencies. That way, the need for payday loans will no longer be needed.

If you have a bad credit score, you also have the option to use peer to peer lending. Instead of getting the high interest payday loans, you are borrowing against individual investors and lenders. The interest may not be the same as a secured loan but it will definitely not be as high as the payday loan.

Another way to eliminate the need for high interest loans is to practice better financial management skills. Live within your means and make sure you follow a budget that will keep you from going overboard on your spending. By being smart with your financial choices, you will keep yourself from making too much mistakes and thus falling into a financial ruin.

Filed Under: debt consolidation loans, debt management, debt relief Tagged With: debt consolidation, debt management, debt relief, payday loans

What To Do With Your Maxed Out Cards

April 11, 2013 by penn

A maxed out credit card simply means that you have been making very bad spending choices. There are only a few options for you when you reach this point.

One of them is ignoring your cards. That is a flat out bad idea. This is the worst thing that you can do because not paying anything for a couple of months can increase your debt balance significantly.

The other option, and obviously the better one, is to pay off your credit card debt.

What To Do With Your Maxed Out CardsFirst things first, you need to stop using your cards. If you maxed it out, you will not be able to use it anyway. But in case you have other cards that are not yet maxed out, then you need to stop using them as well. It will help you solve your debt problems if you stop adding to it. That will allow you to expedite getting a debt free life.

It helps to actually remove the physical cards. Keep them in a place where it will be very difficult for you to access them. Some people refuse to close the account for credit score purposes. If this is what you want, then make sure you come up with a great place to hide it. You can keep only one card in case of emergencies but even that should not be kept at home. Do not bring it with you as you go out performing your errands to avoid using them unnecessarily.

Once you have your cards out of the way, you can start thinking about how you will pay off what you owe. There are debt relief options like debt consolidation that can do wonders for your credit card problems.

There are two ways for you to consolidate your debts. One of them is getting a loan that will help pay off your loan. This is called debt consolidation loans. If you had been taking care of your credit score, you can get a low interest rate. That will be a better alternative for the high interest on your maxed out cards. These loans are usually stretched over 3-5 years so your total card debt will be paid over that time. That can effectively make your monthly contributions smaller.

The other option is getting help through debt management. This involves going to a third party company for help. They will assign a credit counselor who will help you come up with a payment plan called the DMP or debt management plan. This plan will contain a new payment term that spreads out your debt over a longer period – much like in debt consolidation loans. The difference is it will be subject for your creditor’s approval. But once the credit card companies agree, you will send a single payment to your counselor who will distribute payments on your behalf.

Probably the best thing about debt management is learning how to make smarter financial choices. The best companies offering this service usually have financial education and training programs that will help their clients stay out of debt. Credit card debt is the easiest pitfall to get into so you need to learn the right habits that you will implement even after you have reached a debt free status in life.

Filed Under: debt consolidation loans, debt management, debt relief Tagged With: credit card debt, credit card debt relief, debt consolidation loans, debt management, debt relief

Options To Pay Credit Card Debts With High Interest Rates

April 5, 2013 by penn

Options To Pay Credit Card Debts With High Interest RatesWhat makes credit card debt so difficult to get out of is the high interest that you have to pay off on top of the principal amount that you really owe. If this is what you are worried about, there is a way for you to eliminate or lower this rate so you can put more contributions into your debt amount.

The worst you can do with credit card debt is to stick to the minimum payments. It will take you ages to completely finish off your debts. What you need to do is to enrol in a debt relief program that will allow you to make bigger payments on your debt balance and at the same time, lower your interest rate.

Your best option to achieve the above mentioned goals is debt consolidation. The great thing about this solution is the fact that it will have the least effect on your credit score.

There is more than one way to eliminate the high interest on your credit card balance. Debt consolidation loans, specifically, have various options available. If you have a valuable asset like a home or something similar, you can put it up as collateral so you qualify for a secured loan. You will be given a low interest rate on your loan because of the low risk factor that your collateral can bring. In case you default on your payments, the lender can get it to substitute as payment for the debt. You can take the approved loan and use it to pay off your high interest debts. Of course, you are endangering your home in this scenario. But if you have a steady income and you are sure that you can meet payments, then go ahead with this option.

Debt management can also be an option but the lowering of the interest rate is not always guaranteed. But you can still try to talk to a debt counselor to know your chances to get approval for your request.

Another way to pay credit card debts with very high interest is through balance transfer. For a certain fee, you can transfer the balance of your other cards into a low or zero interest card. The low interest is usually just applicable for a certain period so you need to know the schedule so you can take advantage of it. Make sure you are able to pay off a significant percentage of your debt during this promotional period.

Of course, you can also lower the interest rate of your debt by simply asking for it. They usually have a program in place for people who are financially hard up but would still like to pay off what they owe. If you can prove that you are in a financial crisis, they may agree to lower your interest as long as you keep up with the payment term that you have agreed to follow.

The thing about these methods is they will get you out of debt but staying out of it is an entirely different matter. You need to practice the right financial management skills, smart spending habits and save up for a reserve fund. This is the only way you can eliminate the need to get yourself in debt. If something happens that leads to your income falling short of your expenses, you have the funds to support the deficit.

Remember that if you find yourself buried in high interest credit card debt, there is a problem with the way you manage your finances. Address that concern so that you do not only get out of debt, you will learn how to stay out of it.

Filed Under: debt consolidation, debt consolidation loans, debt management, debt relief Tagged With: balance transfer, credit card debt, debt consolidation, debt consolidation loans, debt management, debt relief, high interest credit card

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