Are you stressed out over your mounting debt? If so, and you’re hoping to find a permanent solution to dealing with your debt then debt consolidation may be the answer.
Debt is on the rise. More and more people are using more and more credit cards each year and living well beyond their means. Debt consolidation is often the best solution for those who find themselves buried in a mountain of debt.
Help is out there. There are a myriad of websites that offer debt consolidation information. The key is finding the right program, company or counseling service to best meet your needs.
One of the advantages of debt consolidation is that you can combine all your credit cards and/or loan payments into one more manageable monthly payment which is usually much lower than you were paying for all you individual debts combined. Disadvantages include longer payment terms.
The amount of money you can save through debt consolidation can really make the difference to your personal bottom line. This is because with debt consolidation you reduce or in some cases actually eliminate penalties and interest which you had accumulated. In most cases, you can also reduce your average interest rate.
Knowing your options is important. The whole debt consolidation process can be overwhelming. Through investigation you’ll be able to discover more about how the process works and how each of the options available to you will affect you and your bottom line.
Beware however there are many unscrupulous companies out there who will try to take advantage of anyone who is stressed out over debt. Be wary, if it sounds to good to be true, chances are it isn’t.
For some, debt consolidation is a relatively simple yet for others with a more complicated debt situation it can only make things worse if you don’t sign up with a reputable company who explains the advantages and disadvantages of their services upfront.
As a consumer, it’s your job to protect yourself by seeking out as many opinions as possible before agreeing to any debt consolidation arrangement that will impact your financial future.
Like anything debt consolidation has it’s pros and cons. Hence, it’s not a step to be taken lightly. Do your homework and ask questions.
When investigating whether debt consolidation and/or which debt consolidation company is right for you, you’ll want to find out what the charge is for their services, what the annual percentage rate (APR) is and what the amount of your monthly payments will be. Further you should know upfront how long it will take you to retire your debt and what the total amount is that you’ll end up paying.
Other questions like “What happens if I miss a payment? or “What happens if I’m late making a payment?” are also important questions to ask before you agree to sign up with a debt consolidation company.
Sherrie Le Masurier is a freelance writer who believes in being a wise consumer and living within her means. Her blog http://www.doityourselfdebtreduction.blogspot.com features information on how to get out of debt, debt reduction strategies, credit card debt reduction, debt consolidation, debt management tips and general debt reduction help.
Tags: debt, debt consolidation, debt consolidation companyChristian debt consolidation is a means of reclaiming control over your finances while at the same time staying true to the dictates of your faith. Christian debt consolidation counselors understand that despite all of our best intentions, most of us have trouble managing our finances at one time or another. Christian debt consolidation can offer you the solutions to your financial problems while addressing your spiritual needs, as well. It offers you the help you need to restore your credit rating and reduce your debt while avoiding the need to file for bankruptcy. It also enables you to speak to people who understand your situation, and who can help you get your financial affairs in order. Christian debt consolidation counselors know that indebtedness and the fear it can cause is not the path God would wish for you. He wishes you a life full of abundance and free from fear. Christian debt consolidation can help put you back on the right path.
There are several ways in which Christian debt consolidation assists you in taking back control of your finances. The first step involves working with your creditors to consolidate all of your debts. This means you will have only one affordable monthly payment that will cover all of your bills. You will be able to begin quickly reducing your debt because you will no longer be accruing outrageous monthly finance charges or have late charges attached to your bills because you just don’t have enough money to cover all of your bills.
One of the biggest benefits of Christian debt consolidation is that it can stop the stressful phone calls from creditors. Christian debt consolidation counselors realize that you can not be your best self, the person God intended you to be, if you are plagued by a sense of failure and struggling against a situation you feel is no longer under your control. Knowing that you are paying your debts, and no longer having to deal with the phone calls of creditors, will be the first step to giving you back your sense of self.
One of the most vital aspects of Christian debt consolidation is the financial counseling you receive. This counseling helps you keep your finances on track so you don’t end up in the same financial trouble ever again. It also serves as a gentle reminder of something you already know. You do not need to get yourself into debt trying to obtain all of the things society dictates you need to bring you happiness. If you put your faith in God, He will provide you with everything you need.
Learn more about faith-based debt reduction options at Christian Debt Help.
Tags: christian debt consolidaiton, faith based debt reliefWhy bother, I just have to pay the same anyway? This is what they hope you will say. Who are they; Banks, trust companies, insurance companies and credit card people? Read on and I will talk about how you can get some leverage with your debt and pay less in the end.
It seems we borrow a bit from this company and that company. Many of us only think in terms of the purchasing price of whatever it is we are borrowing the money for and not the real cost. You may not think of it this way but every time you use a credit card, get a financed car or buy some furniture, you are drastically increasing how much you’ll have to pay back. It is the interest that you need to watch out for. By now you’ve heard that you’ll get rich by using the law of compounding but it is the same law of compounding when applied to the interest you’re paying that will keep you broke and in debt.
Some companies legally charge interest rates just, and I mean just, below the line when it becomes loan-sharking. This is about 28%. Look at it this way if you owe a dollar, they charge you .28 cents. Even if it is 15% or 10% that is a lot more than say the loan on your house costs you. Before you buy something, ask yourself, “would I still buy it if the price was 28% higher?” It won’t seem like such a deal.
Debt consolidation is a damage control action. You can’t change the fact that you borrowed all that money. What you can do is try to get the interest rates down to the lowest rate possible. The idea is to use consolidation to get all your debts under one payment to one company. Think about this, if you pay a company extra (the interest) every month is that like you paying them a paycheck? When you owe someone money you are working for them. You go to work and someone pays you, you do not keep that money, you must pay it to someone else. Now that person or company has the money you earned for working, so in fact you are doing your work for them. When I realize this it changed my spending habits forever.
How many companies would like someone to give them money every month without them having to do anything but lend them some money? They likely borrow from someone else at 4% interest and you pay 10-28% interest. Everyone would love that arrangement. The hard reality is you’ve put yourself on the wrong side of this arrangement. Go to a lender and tell them you have a substantial amount of debt. When you ask for a debt consolidation loan you’re telling that lender, “hey I will work for you, how much do I have to pay for that privilege?” Depending on how well you negotiate you can normally get a much lower rate of interest on a larger amount of money than several small debts.
The lender is happy because no matter how low their rate is compared to your last lenders they are still making money on you. You are happier because you are paying less in interest and with the money you saved you are paying off your principal directly. Be smart, be wealthy.
Larry, Alan & Ward are the Three Amigos who developed simple strategies for debt management. Learn their strategies at http://www.winthedebtgame.com.
Tag: debt consolidation