Search Results for: debt consolidation

Do Debt Consolidation Loans Work?

Consolidation loans, or consolidation of debt may work for you in your goals to get out of debt. Consolidation has some benefits, but it also have some risks as well. Find out if consolidation loans would work for you. To consolidate your debt, you would take out a new loan that covers the cost of all of your pressing debt. The new loan pays off all of the others, leaving you with one loan. This consolidation loan must still be paid off, of course. Consolidation loans can make it a little easier to keep up with your debt, since it … Continue reading →

Is Debt Consolidation a Good Idea?

Debt consolidation companies are a big business. Many are non-profit organizations that will help you pay off your debt. They will negotiate with your creditors to bring down the amount that you owe them. They will take a monthly payment from you and distribute it to all of your creditors. This will mean that you may save money over time, you will pay just one company, and eventually your debt will be paid off. This sounds like the perfect solution to many people. However, debt consolidation does have definite drawbacks. It does not look particularly good on your credit report … Continue reading →

How to Save While Getting Out of Debt

When trying to get out of debt, does it make sense to save? Absolutely. Not being prepared for an emergency with ready cash could lead to more severe debt. It is possible to both pay back debt and save at the same time. It just takes commitment and a little knowledge. Here are some tips on just how you can save while still keeping your debt payments on track. Setting up Your Savings If you are starting from scratch, meaning lots of debt and no savings, do whatever it takes to put $500-$1,000 aside right now. While this may seem … Continue reading →

Protecting Yourself from a Debt Relief Company

If you are seriously in debt, you may need the help of a debt relief company. These companies promise to get the creditors off of your back, negotiate for you, act as a shield of protection, and guide you to the right way to pay off that debt. Unfortunately, for a majority of these companies, the real goal is to scam you out of any remaining assets that you might have. Here is what you need to know and need to look for in a debt relief company, in order to protect yourself. First of all, why would these companies … Continue reading →

When You Are Swimming in Debt

Have you ever seen HGTV’s “My First Place”? It’s about first-time home buyers looking for the perfect place to call their own, within a set budget. I’m always amazed by how seemingly transparent they are with their finances. I’ve seen a few episodes where the buyers freely divulged how bad their credit scores were as a justification as to why their budget for house hunting was so low. Another episode followed a guy as he tried to repair his credit while house hunting. The show documented the jockeying he did with lenders as he waited for his score to improve … Continue reading →

The Road to Zero Credit Card Debt

If you are like the tens of millions of Americans, who have racked up large credit card debt since the economy took a dive, you may be wondering how to dig yourself out of the abyss of hopelessness. Many financial experts advise against debt consolidation unless you can find a very low interest rate. Instead, their method of choice is to systematically and aggressively pay down the accounts beginning with the ones that have the highest interest rates. Regardless of what method you employ, financial experts warn that you will never truly be debt free unless you analyze your spending … Continue reading →

Debt Reduction Summary

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Over the past week, I have discussed many ways to approach a do it yourself debt reduction and credit repair plan. A lot of your approach will depend on your situation, so I covered a variety of different angles. Consolidation loans are one of the options to consider when you have many creditors. These are particularly useful if your credit score is still good or if you have a lot of equity in your home. That way, not only can you often create one loan payment, you can often also reduce the interest you are paying. The key warning with … Continue reading →

DIY Debt Reduction

So, you have decided to reduce your debt by doing it yourself? Today, we will discuss a scenario where you have multiple creditors and you want to consolidate it in order to pay it all off. A consolidation loan can be a good idea if you have many different creditors. It allows you to re-focus all your efforts into one place, potentially allowing you to pay your debt off quicker with less effort on your part. Consolidation loans are good for those who are busy and have trouble with their credit reports due to disorganization. They are not always the … Continue reading →

Marriage and Family Issues: Debt

We know that financial problems can strain a marriage and in fact stress the entire family. How does a family manage debt without making that hole deeper? With predatory lenders advertising at alarming rates, not to mention alarming interest rates, it is no wonder some families end up compounding their debt rather than alleviating it. Do any of the following facts surprise you? Couples or families that borrow even more money in an attempt to get out of debt are the number one source of profits for many lenders. Predatory lenders target families in debt for high interest loans and … Continue reading →

Can You Borrow Your Way Out of Debt?

Have you considered borrowing your way out of debt? It sounds silly, doesn’t it? You are borrowing money to pay off your debt, so are you actually getting anywhere. Many people justify doing this by explaining that they are moving the money they owe to a lower interest rate loan, so they are saving money. Unfortunately many people do this using a home equity loan. And usually they are transferring unsecured debt (like credit cards) to a secured debt (your house), which means if you cannot pay for some reason you will lose your home. Often times people will not … Continue reading →