Options To Consolidate Credit Card Debt
by Brad Stroh
Consolidate Credit Card Debt
When managing your existing credit cards seems overwhelming, one effective way to ease both the financial and emotional burden of the cards is to consider the option to consolidate credit card debt. There are several ways to consolidate credit card debt, and there are many benefits that arise from the choice to consolidate credit card debt.
First, what does it mean to consolidate credit card debt? One way to consolidate credit card debt is to take out a new personal loan and use the proceeds to pay down your existing credit cards. Another way to consolidate credit card debt is to perform a balance transfer; this involves applying for a new credit card which will allow you to transfer all the balances from your existing cards onto this one new card.
Both of these methods to consolidate credit card debt involve opening an additional unsecured credit account. Another alternative to consolidate credit card debt is to look into borrowing against your home equity. One way to do this is to take out a Home Equity Line of Credit (HELOC), which is credit line against the equity in your home. You would then use the proceeds of this to pay down all of your credit cards. Another way to take advantage of the equity appreciation in your home to consolidate credit card debt is to refinance your existing mortgage. As part of this refinance, you would use some of the proceeds to pay off your existing credit cards. This type of refinance is often called a debt consolidation refinance - you are consolidating both your old mortgage and your existing credit cards into one new mortgage.
Now that you understand how to consolidate credit card debt, it is important to understand the benefits of this strategy.
*Lower Interest Rate: Perhaps the most significant benefit that results when you consolidate credit card debt is that the new account that you are opening will carry a lower interest rate than the rates on the credit cards that you are paying off. This means that it will cost you less over time to pay off your debt. If your credit is strong enough, you may even qualify for a 0% balance transfer, which means that you will not have to pay interest charges on your debt for a set period of time. Moreover, a secured loan (e.g. mortgage refinance, HELOC, etc.) will generally have a lower interest rate than your existing credit cards.
*Faster Repayment Period: Along with saving money over the long term by lowering your interest rate, you will also more than likely be offered a lower monthly payment. This may be very attractive given your current financial situation. However, if you are able to maintain your present monthly payment amount after you consolidate credit card debt, you will be able to pay off the new balance much more quickly than you would have with the old credit cards.
*Ease of One Bill: Another very important benefit that comes with choosing to consolidate credit card debt is the simplicity of having one monthly bill that comes with the new account that you have opened. With multiple credit cards you are receiving multiple bills, more than likely with different payment due dates throughout the month. Not only is this difficult to keep track of, it also increases the likelihood that you will miss a payment and end up paying late fees and incurring higher interest rates. It is easy to see how one monthly bill can lower your stress level considerably!
These are just some of the many attractive reasons to consolidate credit card debt. Be sure to examine all of the financing options available to you before deciding on the right one. You may be eligible for a loan or credit card with very low interest rate relative to what you are paying.
Brad Stroh is currently co-CEO of Freedom Financial Network and Bills.com. If you would like more of Brad's articles, please visit the Bills.com information on Credit
Wednesday, November 22, 2006
Using A Company For Credit Consolidation
Using A Company For Credit Consolidation
by Eric J. Slarkowski
If you have found yourself over your head with money and in need of credit repair, you may choose to go ahead and apply for credit counseling. Companies that offer this service will set individuals up with a payment plan to reduce their debt until it is paid off through methods such as credit consolidation. While these services may prove invaluable in restoring your financial integrity and gaining back a measure of control over your life, it is imperative that you apply for these services through an accredited, professional agency. There are many companies offering these services and you must choose the one best suited to your needs. Make sure that any companies you are looking into are accredited by a third party; that is, their services are recognized and endorsed by a second organization (non-affiliated!) that recognizes their high standards.
The Council on Accreditation and of Services for Families and Children, Inc., is probably the most well-known of the large number of organizations which debt counseling companies can be recognized by. Accreditation by the COA means that the agency is guaranteed to abide by the high standards set in the areas of volunteer Board governance, service delivery, fiscal integrity, and counselor certification. It is important to note that as a reliable accreditation organization, the COA does turn companies down for accreditation if the standards they set are not met by the company.
Another organization which is vital to the process of debt reduction business is the National Foundation for Credit Counselling. Debt consolidation companies that are members of the NFCC also are required to conform to very high standards. These standards apply both to individual counselors and to the business as a whole. Counselors who work for these businesses must undergo exacting tests and training in order to be certified.
Debt consolidation companies who offer a credit loan and other means of reducing debt must adhere to several standards in order to receive accreditation. They must agree to have annual audits done on operating and trust accounts,a s well as meeting all the requirements that are stated by the Federal Trade Commission. Any clients who use the business must receive a quarterly statement from the company at the very least, and clients must file detailed reports about their situation, including the cause of their debt and written plans of action.
The COA goes even further when they accredit an organization. In order to receive recognition from the COA, businesses must have counselors who are certified by the NFCC and have minimum fee structures in place for their clients. The COA is also committed to meeting the needs of specific minorities and the fair treatment of creditors.
Eric Slarkowski wrote mainly for http://www.creditenio.com , an internet site with topics around credit loan . You might come across his contributions on credit counceling over at http://www.creditenio.com .
by Eric J. Slarkowski
If you have found yourself over your head with money and in need of credit repair, you may choose to go ahead and apply for credit counseling. Companies that offer this service will set individuals up with a payment plan to reduce their debt until it is paid off through methods such as credit consolidation. While these services may prove invaluable in restoring your financial integrity and gaining back a measure of control over your life, it is imperative that you apply for these services through an accredited, professional agency. There are many companies offering these services and you must choose the one best suited to your needs. Make sure that any companies you are looking into are accredited by a third party; that is, their services are recognized and endorsed by a second organization (non-affiliated!) that recognizes their high standards.
The Council on Accreditation and of Services for Families and Children, Inc., is probably the most well-known of the large number of organizations which debt counseling companies can be recognized by. Accreditation by the COA means that the agency is guaranteed to abide by the high standards set in the areas of volunteer Board governance, service delivery, fiscal integrity, and counselor certification. It is important to note that as a reliable accreditation organization, the COA does turn companies down for accreditation if the standards they set are not met by the company.
Another organization which is vital to the process of debt reduction business is the National Foundation for Credit Counselling. Debt consolidation companies that are members of the NFCC also are required to conform to very high standards. These standards apply both to individual counselors and to the business as a whole. Counselors who work for these businesses must undergo exacting tests and training in order to be certified.
Debt consolidation companies who offer a credit loan and other means of reducing debt must adhere to several standards in order to receive accreditation. They must agree to have annual audits done on operating and trust accounts,a s well as meeting all the requirements that are stated by the Federal Trade Commission. Any clients who use the business must receive a quarterly statement from the company at the very least, and clients must file detailed reports about their situation, including the cause of their debt and written plans of action.
The COA goes even further when they accredit an organization. In order to receive recognition from the COA, businesses must have counselors who are certified by the NFCC and have minimum fee structures in place for their clients. The COA is also committed to meeting the needs of specific minorities and the fair treatment of creditors.
Eric Slarkowski wrote mainly for http://www.creditenio.com , an internet site with topics around credit loan . You might come across his contributions on credit counceling over at http://www.creditenio.com .
Securing Your Future from Debt: Debt Consolidation Secured Loan
Securing Your Future from Debt: Debt Consolidation Secured Loan
by Tim Kelly
A debt consolidation secured loan is the loan, which is provided against a security. As security, any worthy asset can be used, including home or other real estate, automobile, saving accounts. With this loan, a borrower can untie all his debts into one and lessens his debts burden. In this article, some points are illuminated in favor of debt consolidation secured loan.
Savior from vicious circle of debts:
The effect of numerous debts problems is inescapable. By availing a debt consolidation secured loans, you can combine all debts into one and get rid of debt dilemma. Let's discuss about this process briefly. Suppose, you are paying off four debts and your deal is going with four various creditors. With this loan, you can combine all debts into one, which will be repayable to one lender only. So, you need not spend much for the sake of paying off your debts only. You can handle your debts without affecting your monthly expenses.
Debt-solution within your budget:
Debt consolidation secured loan, the name itself signifies that these loans are available against a security. Since the presence of security lessens the risk of lending money, hence these loans are offered at an attractive interest rate. Moreover, using a high valuable security ensures borrowers in getting this loan with better terms and conditions. So, with this option, borrowers can get debt solution within their budget.
Easing your dealing with the lender:
Dealing with various lenders is irksome as well as vexatious. After handling their untimely and harassing calls again and again, sometime borrowers lose their mental tranquility. Since, a debt consolidation secured loan ensures borrowers about one loan and one lender facility; hence it eases borrowers' dealing with lender.
Welcoming borrowers to improve their bad credit score:
Many reasons can be responsible for getting a bad credit score. It could be country court judgment, IVAs, arrears, default, bankruptcy or late payment. Usually, a borrower, suffering from a bad credit score, faces numerous hurdles. With a debt consolidation secured loan, he can repair his credit score easily.
Available easily:
As, this loan is offered against a security; therefore lenders do not hesitate to offer the loan to anyone. Borrowers can easily avail this loan from banks, financial institutions or lending companies. In case, if they do not have much time, they can carry on their searching process over the internet as well.
But, at the same time, remember that in case you cannot pay off the amount, it will endanger your property as well as increase your debt difficulties. So, never forget to check your repayment capacity before availing a debt consolidation secured loan.
Tim Kelly is an expert in finance having completed her LLM in Finance (Master of Laws in Finance) from Institute for Law and Finance at Frankfurt University. To find commercial secured loan,debt consolidation secured loans,cheap commercial secured loan that best site's you need visit http://www.commercialsecuredloan.co.uk
by Tim Kelly
A debt consolidation secured loan is the loan, which is provided against a security. As security, any worthy asset can be used, including home or other real estate, automobile, saving accounts. With this loan, a borrower can untie all his debts into one and lessens his debts burden. In this article, some points are illuminated in favor of debt consolidation secured loan.
Savior from vicious circle of debts:
The effect of numerous debts problems is inescapable. By availing a debt consolidation secured loans, you can combine all debts into one and get rid of debt dilemma. Let's discuss about this process briefly. Suppose, you are paying off four debts and your deal is going with four various creditors. With this loan, you can combine all debts into one, which will be repayable to one lender only. So, you need not spend much for the sake of paying off your debts only. You can handle your debts without affecting your monthly expenses.
Debt-solution within your budget:
Debt consolidation secured loan, the name itself signifies that these loans are available against a security. Since the presence of security lessens the risk of lending money, hence these loans are offered at an attractive interest rate. Moreover, using a high valuable security ensures borrowers in getting this loan with better terms and conditions. So, with this option, borrowers can get debt solution within their budget.
Easing your dealing with the lender:
Dealing with various lenders is irksome as well as vexatious. After handling their untimely and harassing calls again and again, sometime borrowers lose their mental tranquility. Since, a debt consolidation secured loan ensures borrowers about one loan and one lender facility; hence it eases borrowers' dealing with lender.
Welcoming borrowers to improve their bad credit score:
Many reasons can be responsible for getting a bad credit score. It could be country court judgment, IVAs, arrears, default, bankruptcy or late payment. Usually, a borrower, suffering from a bad credit score, faces numerous hurdles. With a debt consolidation secured loan, he can repair his credit score easily.
Available easily:
As, this loan is offered against a security; therefore lenders do not hesitate to offer the loan to anyone. Borrowers can easily avail this loan from banks, financial institutions or lending companies. In case, if they do not have much time, they can carry on their searching process over the internet as well.
But, at the same time, remember that in case you cannot pay off the amount, it will endanger your property as well as increase your debt difficulties. So, never forget to check your repayment capacity before availing a debt consolidation secured loan.
Tim Kelly is an expert in finance having completed her LLM in Finance (Master of Laws in Finance) from Institute for Law and Finance at Frankfurt University. To find commercial secured loan,debt consolidation secured loans,cheap commercial secured loan that best site's you need visit http://www.commercialsecuredloan.co.uk
Monday, November 20, 2006
How to Find Cheap Debt Consolidation Loan in UK
How to Find Cheap Debt Consolidation Loan in UK
by Rick Russel
The ever increasing cost of living may sometimes leads to piles of pending bills on your study table. You may finally end up taking many loans, which will only add to your worries. These are only temporary solutions for your financial crisis and are not going to work in the long run. If you pay interest rates individually, it will cost you really expensive and troublesome as well. However, a simple solution is to pay more than one existing debts through a debt consolidation loan in the UK.
These debt consolidation loans are very popular in the UK. These loans are taken to repay all your pending bills and loans. A debt consolidation loan UK is used to pay off all your earlier debts. It facilitates you to combine various debts and make a single repayment plan. Paying off different loans, as well as, interest rates individually can be a bit problematic and may cost a huge amount. Well using collateral can help in bringing down the rate of interest to a considerable extent. It provides a back up to your borrowing and lessens the risk factor.
According to a debt consolidation loan UK, all your debts are combined and the interest is charged upon that particular amount, which automatically trims down your concerned debt. Thus, the biggest advantage of a debt consolidation loan UK is that, it helps in discounting the debt.
Always remember, with more than one debt you will find yourself trapped in to unmanageable debts. You have to take constructive steps to come out of this trouble. With debt consolidation loan UK, you can repay pending loans such as educational loans, credit card bills, holiday loans, utility bills etc. However, the success of debt consolidation loans UK depends a great deal upon the type of loan you are going to consolidate. For instance, debt consolidation of credit card may prove to be beneficial because of the high rate of interest of credit cards.
A debt consolidation loan UK has innumerable advantages. It helps in trimming down monthly instalments, interest rates. You are free from the worry of dealing with many lenders. It helps to avoid bankruptcy, saves money, consolidation of utility bills and credit cards. The rate of interest depends upon a number of factors like loan amount, type of loan and concerned fees. You have to pay attention to the fact that debt consolidation loan UK trims down the cost of your unsecured debt and repay loan within a short span of time. You can also search online to find debt consolidation loan UK at cheap rates.
Rick Russel has no formal degree in finance, but years of work that he has put in the finance industry makes him perfectly eligible to be called an expert in financial matters. To find Debt consolidation loan, debt consolidation loan UK, bad debt consolidation UK mortgages visit http://www.fixyourdebts.co.uk
by Rick Russel
The ever increasing cost of living may sometimes leads to piles of pending bills on your study table. You may finally end up taking many loans, which will only add to your worries. These are only temporary solutions for your financial crisis and are not going to work in the long run. If you pay interest rates individually, it will cost you really expensive and troublesome as well. However, a simple solution is to pay more than one existing debts through a debt consolidation loan in the UK.
These debt consolidation loans are very popular in the UK. These loans are taken to repay all your pending bills and loans. A debt consolidation loan UK is used to pay off all your earlier debts. It facilitates you to combine various debts and make a single repayment plan. Paying off different loans, as well as, interest rates individually can be a bit problematic and may cost a huge amount. Well using collateral can help in bringing down the rate of interest to a considerable extent. It provides a back up to your borrowing and lessens the risk factor.
According to a debt consolidation loan UK, all your debts are combined and the interest is charged upon that particular amount, which automatically trims down your concerned debt. Thus, the biggest advantage of a debt consolidation loan UK is that, it helps in discounting the debt.
Always remember, with more than one debt you will find yourself trapped in to unmanageable debts. You have to take constructive steps to come out of this trouble. With debt consolidation loan UK, you can repay pending loans such as educational loans, credit card bills, holiday loans, utility bills etc. However, the success of debt consolidation loans UK depends a great deal upon the type of loan you are going to consolidate. For instance, debt consolidation of credit card may prove to be beneficial because of the high rate of interest of credit cards.
A debt consolidation loan UK has innumerable advantages. It helps in trimming down monthly instalments, interest rates. You are free from the worry of dealing with many lenders. It helps to avoid bankruptcy, saves money, consolidation of utility bills and credit cards. The rate of interest depends upon a number of factors like loan amount, type of loan and concerned fees. You have to pay attention to the fact that debt consolidation loan UK trims down the cost of your unsecured debt and repay loan within a short span of time. You can also search online to find debt consolidation loan UK at cheap rates.
Rick Russel has no formal degree in finance, but years of work that he has put in the finance industry makes him perfectly eligible to be called an expert in financial matters. To find Debt consolidation loan, debt consolidation loan UK, bad debt consolidation UK mortgages visit http://www.fixyourdebts.co.uk
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