Wednesday, September 2, 2009
Sunday, January 6, 2008
12 Pros And Cons Of Debt Consolidation To Understand Before Going Ahead
In the consumer based society of the modern world debt is apart of life and existence. Advertisements, brochures, news reviews and more promote spending what you have not earned and the end result is debt. After debt reaches epidemic proportions, the marketing whizzes focus on how to consolidate debt. The TV, radio, web sites, magazines, and newspapers call carry advice on solving debt and how debt consolidation can be the answer to your prayers.
An average US family has at least four credit cards with all the available credit used up, a home loan, car loan, education loan and a consumer loan. Soon the payments owed every month are higher than the income. The world in reality is not all sunshine and debt has its ups and downs.
Here are a few important pluses and minuses of debt consolidation:
• Pluses:
a. You club all loans into a single one and work out a feasible EMI and interest rate.
b. Most consolidation loans carry a much lower interest rate in comparison to other credit card or consumer loans. The most popular being the home equity loan.
c. Consolidation means a lower monthly payment to be made over a longer period. It is important to try and pay back not the minimal EMI but the largest possible.
d. Many home equity loans come with a tax breaks which in the long run is a saving.
e. Instead of juggling many payments at different interest rates you need to only provide for the steady repayment of a single consolidated loan. And there are no tensions of delayed payments, wrong amounts paid or forgotten payments.
f. Consolidating debt means avoiding declaring bankruptcy. By consolidating debt and formulating a financial budget you can hope to improve credit scores as well as reports.
g. By taking the debt consolidation step at the right time you will be able to start life afresh and learn how to manage your finances without the accompanying tensions of loans owed.
• Minuses :
h. Many individuals are unable to discipline themselves and once funds are available they begin binging creating more debts and slipping into deeper debt instead of swimming to safety.
i. Consolidation loans have long tenures, say 10-30 years. This means instead of clearing debt in say two years at high interest rate you will be clearing the loan over several years. You will be tied down and your property or asset will remain mortgaged to the home equity loan.
j. In depth calculations indicate that you may land up paying more as the loan will be paid over many years. In addition any late fees and penalties you may incur will add to the burden.
k. Since the debt consolidation loan has your home or property as collateral you stand to loose the collateral if you do not pay or default on payments.
l. Consolidation loans give a false sense of security and complacency. The urgency to pay debts of will not exist.
It is important to take a knowledgeable decision and consolidate debt after credit counseling.
An average US family has at least four credit cards with all the available credit used up, a home loan, car loan, education loan and a consumer loan. Soon the payments owed every month are higher than the income. The world in reality is not all sunshine and debt has its ups and downs.
Here are a few important pluses and minuses of debt consolidation:
• Pluses:
a. You club all loans into a single one and work out a feasible EMI and interest rate.
b. Most consolidation loans carry a much lower interest rate in comparison to other credit card or consumer loans. The most popular being the home equity loan.
c. Consolidation means a lower monthly payment to be made over a longer period. It is important to try and pay back not the minimal EMI but the largest possible.
d. Many home equity loans come with a tax breaks which in the long run is a saving.
e. Instead of juggling many payments at different interest rates you need to only provide for the steady repayment of a single consolidated loan. And there are no tensions of delayed payments, wrong amounts paid or forgotten payments.
f. Consolidating debt means avoiding declaring bankruptcy. By consolidating debt and formulating a financial budget you can hope to improve credit scores as well as reports.
g. By taking the debt consolidation step at the right time you will be able to start life afresh and learn how to manage your finances without the accompanying tensions of loans owed.
• Minuses :
h. Many individuals are unable to discipline themselves and once funds are available they begin binging creating more debts and slipping into deeper debt instead of swimming to safety.
i. Consolidation loans have long tenures, say 10-30 years. This means instead of clearing debt in say two years at high interest rate you will be clearing the loan over several years. You will be tied down and your property or asset will remain mortgaged to the home equity loan.
j. In depth calculations indicate that you may land up paying more as the loan will be paid over many years. In addition any late fees and penalties you may incur will add to the burden.
k. Since the debt consolidation loan has your home or property as collateral you stand to loose the collateral if you do not pay or default on payments.
l. Consolidation loans give a false sense of security and complacency. The urgency to pay debts of will not exist.
It is important to take a knowledgeable decision and consolidate debt after credit counseling.
Saturday, October 20, 2007
College Loans - Easy Money
Today a check came in the mail... $5,338.00.
The check came in my daughters name. She'll be a senior at St John's University this year in September.
But, she needs to go to summer school. She will be taking 2 classes... Spanish Level II - 3.0 credits and Public Speaking Col - 3.0 credits ......... for a total of 6.0 credits.
Language Lab Fee............ $25.00 Tuition: St Johns College......$5,238.00
University General Fee.........$50.00. ... Total - $5,338.00 ...
That's how much the check was for... $5,338.00 It was from her favorite lender Sallie Mae.
The envelope with the check was addressed to my daughter, not me. I didn't even know she had applied for the loan.
She didn't ask my opinion or advice or permission. She's 20 years old, no longer my little girl. Old enough to borrow $5,338.00 on her own. Damn!
There will come a time when that $5,338 will have to be paid back. There is a price to be paid for this "easy-money".
At about $50/mo, it will take about 10 years to pay that off. ... Not so easy to pay back! My daughter owes $28,973.13 in student loans so far. She still has at least 1 more year to go for a bachelors degree.
Plus she has to go to grad school for at least another 2 years if she wants to find a job in Psychology...
And she's talking about going for a doctorate degree. Another 2 years. If she keeps borrowing at the same rate over the next 5 years, to get her PhD, she'll owe $72,432 in student loans.
$72,432 in student loans - Easy Money!
And that doesn't take into account inflation and the increasing cost of higher education each and every year.
Most students (and their parents) will end up taking out student loans. However, if you can get some scholarship money, that is money you don't have to pay back.
Since ALL schools are inundated with too many applications for scholarship money, emphasis is placed on the scholarship essay to determine who will get the available scholarship monies.
Unfortunately, many students and parents don't know how to apply for scholarships. Here is a quick but important tip for winning scholarship money.
Set yourself apart from the thousands of other applicants by being specific about what you have done in your life. If you've achieved, tell the judges. Put your best foot forward.
If you have family responsibilities, tell them what you do. Otherwise the judges don't know. Write about what you have actually done and you will be remembered by the committee members and increase your chances of winning scholarships.
The check came in my daughters name. She'll be a senior at St John's University this year in September.
But, she needs to go to summer school. She will be taking 2 classes... Spanish Level II - 3.0 credits and Public Speaking Col - 3.0 credits ......... for a total of 6.0 credits.
Language Lab Fee............ $25.00 Tuition: St Johns College......$5,238.00
University General Fee.........$50.00. ... Total - $5,338.00 ...
That's how much the check was for... $5,338.00 It was from her favorite lender Sallie Mae.
The envelope with the check was addressed to my daughter, not me. I didn't even know she had applied for the loan.
She didn't ask my opinion or advice or permission. She's 20 years old, no longer my little girl. Old enough to borrow $5,338.00 on her own. Damn!
There will come a time when that $5,338 will have to be paid back. There is a price to be paid for this "easy-money".
At about $50/mo, it will take about 10 years to pay that off. ... Not so easy to pay back! My daughter owes $28,973.13 in student loans so far. She still has at least 1 more year to go for a bachelors degree.
Plus she has to go to grad school for at least another 2 years if she wants to find a job in Psychology...
And she's talking about going for a doctorate degree. Another 2 years. If she keeps borrowing at the same rate over the next 5 years, to get her PhD, she'll owe $72,432 in student loans.
$72,432 in student loans - Easy Money!
And that doesn't take into account inflation and the increasing cost of higher education each and every year.
Most students (and their parents) will end up taking out student loans. However, if you can get some scholarship money, that is money you don't have to pay back.
Since ALL schools are inundated with too many applications for scholarship money, emphasis is placed on the scholarship essay to determine who will get the available scholarship monies.
Unfortunately, many students and parents don't know how to apply for scholarships. Here is a quick but important tip for winning scholarship money.
Set yourself apart from the thousands of other applicants by being specific about what you have done in your life. If you've achieved, tell the judges. Put your best foot forward.
If you have family responsibilities, tell them what you do. Otherwise the judges don't know. Write about what you have actually done and you will be remembered by the committee members and increase your chances of winning scholarships.
Sunday, October 7, 2007
Self Credit Repair Posted By : Guuru
Self credit repair is basically the only way you can repair your bad credit. Self credit repair is a do-it-yourself kind of program. Self Credit Repair is the beginning of a stress free and debt free life. Self credit repair is the best credit repair, as long as you know what you are doing.
I know self credit repair is the best however I don't have the time or know much about the whole Credit/Credit Bureau process or Laws. One of the biggest misconceptions we all face is that credit repair is illegal. Credit Repair is generally the process of bringing "back to life" an individual's credit history.
Bad credit repair is a temporary situation and it can be fixed. Bad credit repair is one solution to such a predicament. Credit repair is the process of restoring your financial reputation. Credit repair is a legal way to clean up and improve your credit report. Obviously, the goal of credit repair is to improve your credit score and get you back on track financially after past credit problems. Self credit repair is essentially the only way you can repair your bad credit.
The first step to credit repair is organizing your bills. Credit repair is a technique that can remove errors or inaccurate information from your credit report. All of us are aware that bad credit repair is essential for living a normal life. Credit repair is completely legal as long as you follow the rules provided by The "Fair Credit Reporting Act".
One of the most important things in credit repair is to act quickly. One good strategy for credit repair is to consolidate your high interest debt. So the first aspect of dealing with credit repair is to understand that knowledge is power. First, determine how much credit repair is necessary.
I know self credit repair is the best however I don't have the time or know much about the whole Credit/Credit Bureau process or Laws. One of the biggest misconceptions we all face is that credit repair is illegal. Credit Repair is generally the process of bringing "back to life" an individual's credit history.
Bad credit repair is a temporary situation and it can be fixed. Bad credit repair is one solution to such a predicament. Credit repair is the process of restoring your financial reputation. Credit repair is a legal way to clean up and improve your credit report. Obviously, the goal of credit repair is to improve your credit score and get you back on track financially after past credit problems. Self credit repair is essentially the only way you can repair your bad credit.
The first step to credit repair is organizing your bills. Credit repair is a technique that can remove errors or inaccurate information from your credit report. All of us are aware that bad credit repair is essential for living a normal life. Credit repair is completely legal as long as you follow the rules provided by The "Fair Credit Reporting Act".
One of the most important things in credit repair is to act quickly. One good strategy for credit repair is to consolidate your high interest debt. So the first aspect of dealing with credit repair is to understand that knowledge is power. First, determine how much credit repair is necessary.
Sunday, September 30, 2007
Debt Consolidation Is Not Always The Right Solution
Not all debt can be consolidated and given that there are different consolidation programs you should check if the one you choose or the one that the agent chose for you is really to your advantage.
There are many reasons why debt consolidation may not be the right solution for you. Debt consolidation cannot solve debt problems for all kind of debts. Debt consolidation may be too expensive if debt has already affected your credit and you don't have collateral. And certain debt consolidation programs may be nothing but scams. Thus, you need to be well aware of what you are getting into.
Debt Not To Be Consolidated
For starters, you should understand than not all debt is suitable to be consolidated. The reasons for this are varied. Most subsidized loans already carry very low interest rates and thus, it makes no sense to consolidate those loans by using a more expensive loan. This is always true, unless of course what you need is to reduce the monthly payments by extending the loan repayment period.
There are many subsidized loans. Government loans for students, private loans for students, government loans for first time home buyers, government loans for starting businesses, government loans for research disciplines, etc. are just a few examples of subsidized loans that are not suitable for consolidation.
There are loans that being secured are not suitable for consolidation. Though refinancing can be a form of consolidation if other loans and debt are repaid with the exceeding cash obtained from a cash-out refinance loan, truth is that very seldom a home loan or home equity loan is included in a debt consolidation program.
Debt Suitable For Consolidation
Generally speaking only debt which is unsecured in nature and secured debt taken when your credit score was low (bad credit debt) is suitable for debt consolidation. The latter will be suitable only if your credit score has improved or if you can provide better collateral and thus obtain a more competitive interest rate.
Examples of unsecured debt are: unsecured personal loans and personal lines of credit, credit card debt, store card debt, pay day loans, cash advance loans, certain student debt, bank account overdraw agreements, bank pre-approved personal loans. All of these can be consolidated into a single loan or the terms negotiated by a debt consolidation agent.
Debt consolidation in the form of a loan carries the advantage of obtaining a single and lower monthly payment that will simplify your budget while you work on your expenses. Debt consolidation in the form of negotiation is also an excellent tool that can provide a solution by reducing rates, eliminating debt generated by interests or extending the repayment programs so as to make debt more affordable.
And finally, both methods can be combined offering an excellent way of eliminating debt, managing finances and improving credit score in the same debt consolidation program.
---
There are many reasons why debt consolidation may not be the right solution for you. Debt consolidation cannot solve debt problems for all kind of debts. Debt consolidation may be too expensive if debt has already affected your credit and you don't have collateral. And certain debt consolidation programs may be nothing but scams. Thus, you need to be well aware of what you are getting into.
Debt Not To Be Consolidated
For starters, you should understand than not all debt is suitable to be consolidated. The reasons for this are varied. Most subsidized loans already carry very low interest rates and thus, it makes no sense to consolidate those loans by using a more expensive loan. This is always true, unless of course what you need is to reduce the monthly payments by extending the loan repayment period.
There are many subsidized loans. Government loans for students, private loans for students, government loans for first time home buyers, government loans for starting businesses, government loans for research disciplines, etc. are just a few examples of subsidized loans that are not suitable for consolidation.
There are loans that being secured are not suitable for consolidation. Though refinancing can be a form of consolidation if other loans and debt are repaid with the exceeding cash obtained from a cash-out refinance loan, truth is that very seldom a home loan or home equity loan is included in a debt consolidation program.
Debt Suitable For Consolidation
Generally speaking only debt which is unsecured in nature and secured debt taken when your credit score was low (bad credit debt) is suitable for debt consolidation. The latter will be suitable only if your credit score has improved or if you can provide better collateral and thus obtain a more competitive interest rate.
Examples of unsecured debt are: unsecured personal loans and personal lines of credit, credit card debt, store card debt, pay day loans, cash advance loans, certain student debt, bank account overdraw agreements, bank pre-approved personal loans. All of these can be consolidated into a single loan or the terms negotiated by a debt consolidation agent.
Debt consolidation in the form of a loan carries the advantage of obtaining a single and lower monthly payment that will simplify your budget while you work on your expenses. Debt consolidation in the form of negotiation is also an excellent tool that can provide a solution by reducing rates, eliminating debt generated by interests or extending the repayment programs so as to make debt more affordable.
And finally, both methods can be combined offering an excellent way of eliminating debt, managing finances and improving credit score in the same debt consolidation program.
---
Friday, September 28, 2007
Self Credit Repair
Self credit repair is basically the only way you can repair your bad credit. Self credit repair is a do-it-yourself kind of program. Self Credit Repair is the beginning of a stress free and debt free life. Self credit repair is the best credit repair, as long as you know what you are doing.
I know self credit repair is the best however I don't have the time or know much about the whole Credit/Credit Bureau process or Laws. One of the biggest misconceptions we all face is that credit repair is illegal. Credit Repair is generally the process of bringing "back to life" an individual's credit history.
Bad credit repair is a temporary situation and it can be fixed. Bad credit repair is one solution to such a predicament. Credit repair is the process of restoring your financial reputation. Credit repair is a legal way to clean up and improve your credit report. Obviously, the goal of credit repair is to improve your credit score and get you back on track financially after past credit problems. Self credit repair is essentially the only way you can repair your bad credit.
The first step to credit repair is organizing your bills. Credit repair is a technique that can remove errors or inaccurate information from your credit report. All of us are aware that bad credit repair is essential for living a normal life. Credit repair is completely legal as long as you follow the rules provided by The "Fair Credit Reporting Act".
One of the most important things in credit repair is to act quickly. One good strategy for credit repair is to consolidate your high interest debt. So the first aspect of dealing with credit repair is to understand that knowledge is power. First, determine how much credit repair is necessary.
I know self credit repair is the best however I don't have the time or know much about the whole Credit/Credit Bureau process or Laws. One of the biggest misconceptions we all face is that credit repair is illegal. Credit Repair is generally the process of bringing "back to life" an individual's credit history.
Bad credit repair is a temporary situation and it can be fixed. Bad credit repair is one solution to such a predicament. Credit repair is the process of restoring your financial reputation. Credit repair is a legal way to clean up and improve your credit report. Obviously, the goal of credit repair is to improve your credit score and get you back on track financially after past credit problems. Self credit repair is essentially the only way you can repair your bad credit.
The first step to credit repair is organizing your bills. Credit repair is a technique that can remove errors or inaccurate information from your credit report. All of us are aware that bad credit repair is essential for living a normal life. Credit repair is completely legal as long as you follow the rules provided by The "Fair Credit Reporting Act".
One of the most important things in credit repair is to act quickly. One good strategy for credit repair is to consolidate your high interest debt. So the first aspect of dealing with credit repair is to understand that knowledge is power. First, determine how much credit repair is necessary.
Monday, September 17, 2007
Some Steps To Credit Card Debt Reduction: The Key To Prosperity And Happiness
A secret to credit card debt reduction is to limit your card usage by carefully choosing a structured plan and implementing it. To attain financial freedom and ease the money supply, you should be able to lift your prosperity consciousness. You should understand your attitude towards money, which will restrain you from adding extra debts.
Try to curb impulsive buying and identify your needs by practicing therapies like spiritualism. This would help you in getting over the tension of having unmet demands. If find the habit hard to break, there is no harm in considering debt consolidation counseling, which helps you in different ways and aids you in achieving your dues reduction goals.
Credit Card Debt Reduction: Self Help Is The Key
Personally, a few ways can be suggested by which you can change your thought process and restrict card debts. First, let us concentrate on the way you were taught to handle money in childhood. If the idea was that too much money is bad then you may try getting rid of money and over spend it. Next, it could be the lack of finances in childhood, which has now translated to adequate finances.
This makes you feel mentally strong and boosts your self esteem. Low self worth could sabotage your personality, which enhances the chances of you not being able to pay the bills and adds chaos to your life. These are some examples where debt counseling can help you get rid of nasty spending habits and move towards credit card debt reduction.
If your debt has already grown to alarming proportions, you can even consider a consolidation loan or professional debt management solutions to become debt free.
Working on a positive belief on money matters, you can easily hold back your extra spending urges and achieve your credit card debt reduction targets. Meditation and positive affirmations of looking at the world, brings within you a sense of spending according to your needs alone.
Keep a track of how much money comes in and how much to spend. Balance it and you will have a clearer picture of what you need to do in light of your finances. Try visualizing prosperity and success, to keep you in high spirits and understanding high finance. Meditate and remember God as the source of all your wants and needs.
See yourself living in a dream home with savings that will pull you through times of need. Expand your imagination to the fullest and see yourself meeting all your needs. When you try these methods, you can limit plastic money usage and achieve reduction of your card dues.
No More New Credit Card Debts
Promise yourself and be committed that you will not create any further card debt. Praise yourself at the end of the day for the commitment honored. Check out the need to buy even if a product is on sale. You do not have to have too many credit cards, as you need maximum one or two to fall back on.
Store them in a safe deposit and try not to carry them at the time of shopping. Reward yourself with a 90 minute bubble bath at the end of the month, if no further debt is created. These are some sure ways of achieving your debt reduction goals.
Try to curb impulsive buying and identify your needs by practicing therapies like spiritualism. This would help you in getting over the tension of having unmet demands. If find the habit hard to break, there is no harm in considering debt consolidation counseling, which helps you in different ways and aids you in achieving your dues reduction goals.
Credit Card Debt Reduction: Self Help Is The Key
Personally, a few ways can be suggested by which you can change your thought process and restrict card debts. First, let us concentrate on the way you were taught to handle money in childhood. If the idea was that too much money is bad then you may try getting rid of money and over spend it. Next, it could be the lack of finances in childhood, which has now translated to adequate finances.
This makes you feel mentally strong and boosts your self esteem. Low self worth could sabotage your personality, which enhances the chances of you not being able to pay the bills and adds chaos to your life. These are some examples where debt counseling can help you get rid of nasty spending habits and move towards credit card debt reduction.
If your debt has already grown to alarming proportions, you can even consider a consolidation loan or professional debt management solutions to become debt free.
Working on a positive belief on money matters, you can easily hold back your extra spending urges and achieve your credit card debt reduction targets. Meditation and positive affirmations of looking at the world, brings within you a sense of spending according to your needs alone.
Keep a track of how much money comes in and how much to spend. Balance it and you will have a clearer picture of what you need to do in light of your finances. Try visualizing prosperity and success, to keep you in high spirits and understanding high finance. Meditate and remember God as the source of all your wants and needs.
See yourself living in a dream home with savings that will pull you through times of need. Expand your imagination to the fullest and see yourself meeting all your needs. When you try these methods, you can limit plastic money usage and achieve reduction of your card dues.
No More New Credit Card Debts
Promise yourself and be committed that you will not create any further card debt. Praise yourself at the end of the day for the commitment honored. Check out the need to buy even if a product is on sale. You do not have to have too many credit cards, as you need maximum one or two to fall back on.
Store them in a safe deposit and try not to carry them at the time of shopping. Reward yourself with a 90 minute bubble bath at the end of the month, if no further debt is created. These are some sure ways of achieving your debt reduction goals.
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