Skywind asked:
I am not a home owner, although I do own a car worth about $12k. I have $10k in credit card debt at 18% – is there a way to refinance this with another bank/company at a lower rate?
RING
Daniel Major asked:
It is not nice being in debt, especially when that debt is unmanageable! Credit card consolidation can help dig you out of a hole but where do you go to find it; directories of course!
It can become demoralizing staring at a mountain of bills that you know you just cannot afford to pay and the nauseating feeling you have whenever the telephone rings is horrible simply because you are unsure whether or not it is a credit card representative asking for reasons why you haven’t made your last two payments. If this sounds familiar perhaps it is time you took steps to rectify the situation by seeking out a credit card consolidation loan.
Credit card consolidation is the process whereby all your credit card debt is combined into one, manageable debt often at a reduced interest rate. By consolidating your debt you will take some of the weight off your shoulders and reduce your stress levels and give yourself a fresh financial platform from which to move forward from; but where do you start looking for this financial lifeline?
To the inexperience consolidator the search for companies that offer this service can be difficult but this is where a directory proves invaluable. By searching through a directory you will be able to determine which companies are able to offer the services you require depending on your specific needs.
The use of directories that list credit card debt consolidation companies can really speed up the process and get you back on an even keel much quicker. Using a directory will free up a lot of time that you can utilize elsewhere and once you have arrived at a shortlist of companies you can then start performing more comprehensive checks on them.
Once you have your shortlist of companies that provide credit card consolidation loans you should start by asking friends and families if they have had dealings with them or not, if not, ask if they know of someone who has, and then find out if they gave a good service based on experience and the speed at which they processed applications etc.
Check out any potential company with the better business bureau (www.bbb.org), if they have any bad press you will likely here about it here!
So there you have it, using directories to find companies that offer credit card consolidation loans and services is the fast-track to getting your credit card debt under control.
BERGMAN
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John Chase asked:
Debt Consolidation Pros And Cons
Debt consolidation has become a popular way to reduce interest rates and monthly payments for people that owe money to several different creditors each month. In spite of its popularity, debt consolidation is NOT the best solution for everyone. Before you agree to a debt consolidation process, analyze the pros and cons of this tool.
DEBT CONSOLIDATION PROS:
Money or credit for debt consolidation is relatively easy to obtain. Often, homeowners can use the equity built up in their house. To do this, they borrow against the equity (basically, take out a second mortgage). Another way to get money for debt consolidation is to obtain a debt consolidation loan. Again, these loans usually backed by some type of collateral, act very much like 2nd mortgages. Zero interest credit cards are another method for getting money to consolidate loans. Consumers with relatively good credit can use this option with fewer risks.
Lower interest rates – Most debt consolidation plans have lower interest rates than what is currently being paid and that makes them attractive.
Lower monthly payments – Lower interest rates mean that the monthly payment amount is less. For people that are struggling to make multiple monthly payments, this eases the stress.
Simplicity – Debt consolidation allows consumers to make a single payment each month to cover ALL their credit accounts instead of making individual payments to each creditor. Overall, it simplifies record keeping while it reduces the likelihood of “forgetting” a payment.
Potential to pay debt off sooner rather than later – With lower overall interest rates, it is possible to pay less over time and erase the total debt sooner.
DEBT CONSOLIDATION CONS:
It puts assets at risk – Most of the time, debt consolidation involves converting unsecured debt into secured debt. In order to do that, the debt consolidation lender requires some type of collateral. Certainly, that raises the stakes of non-payment, even if the payment amount is lower.
Debt consolidation candidates are more susceptible to predatory lending – Consumers that are struggling to make monthly payments are more likely to be desperate and willing to agree to whatever terms are available in order to get money for the short-term crisis. Later, these consumers are stuck in agreements that take advantage of them.
There is a potential to “max out” credit again – Debt consolidation does not do anything to eliminate the potential for going further into debt. It just moves the debt to another place and creates a false sense of security for people that have not changed their behavior.
Lower interest rates and payments can mean longer loans – One of the ways that debt consolidation lenders can provide lower rates is to spread payments out for a longer period of time. If this is the case, consumers can end up paying MORE, over time than they would have it had paid the original creditors directly.
HIRSCH
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KarenB asked:
My husband and I want to pay off some credit card debt; which is the better option?
COY
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. . asked:
I have debt totaling 30,000. I own a home in which I have over 150k equity in. I want to pay this debt once and for all. What would be the smartest way to do this? Should I refinance, take a home equity loan or set up a payment plan? My mortgage rate is 5.375 so refinancing would put me into a new higher rate since rates have gone up. I also have access to $10,000 in my 401k that I could borrow. I just want to make the right decision here. Any help would be great! Thanks.
SCHOTT
John Chase asked:
Credit Card Consolidation Debt Non Profit
There is much interest these days when it comes to financial products and services which offer real debt relief, especially when it comes to credit card debt. That’s because many U.S. residents are feeling the pinch of an economy in recession. In times like these, the trickle down effect is negative. Less consumer spending means less sales and less profits for employers. Less profits and even worse – losses, means employers must slash jobs to remain profitable. For those whose jobs are not cut – they face stagnant wages, wage reductions and benefits reductions; concessions in other words.
And so the subject of debt consolidation is spoken of more and more often. It’s a term which most people have most likely have heard of and seen TV commercials and heard radio commercials for. And while some people may have a vague, foggy, general idea of what debt consolidation is, I would like to offer a real-world explanation of debt consolidation and how it works, and also touch on the subject of credit card debt consolidation non profit.
Debt consolidation in itself is a fairly simple and straight-foward process. It involves combining multiple existing monthly loan payments into a single monthly payment. The key feature being that the new, single monthly loan payment is a lesser amount than the sum of the previous, multiple existing loans. This may be achieved through lower interest rates and/or an extended repayment period.
Debt consolidation may or may not involve the taking out of a new loan to replace the multipe exisiting loans. When a debt consolidation loan is obtained, it quite often is made in the form of a home equity loan. This basically is the exchange of unsecured debt for secured debt.
Now it may be that some consumers simply feel more comfortable working with a debt consolidation firm or agency that is a non-profit company. While arguments can be made both for and against this thinking along many different lines and fronts, the fact is that both non-profit and traditional for-profit companies are eqaully qualified to work on behalf of the consumer that is seeking debt relief.
To learn more about debt consolidation and debt consolidation non profit, please visit Total Debt Relief.
PEAK
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