Saturday, March 22, 2008
So...What Are Your Options For Consolidating Your Debt?
It just is not any fun having a lot of debt. It does not take long before you get tired of not having enough money each month, and the bills just do not stop. Perhaps the collection agencies are already calling. When any of this starts to happen, it is time for you to consider consolidating your debts. Here are a few options that you have available.
A New Balance Transfer Credit Card-
This kind of credit card will be useful to you if your overall debt is not very large. By getting a new balance transfer credit card, you can put balances on other credit cards on to the new one. You will want to find one with an introductory offer of 0% APR interest, which means you pay no interest for the length of the introductory offer. Some of these credit card offers last up to 15 months. You will need good credit to be able to get the lowest interest rates. Be careful not to make any late payments, or you may find that your introductory offer ends immediately.
Secured Personal Loans-
This kind of personal loans will enable you to consolidate your debts and get a reasonable interest rate, too. It will depend on your credit score, though. You can put all your debts into one easy monthly payment that should be low enough to handle comfortably. A secured loan will require that you put up something for collateral, like a car or your house.
Unsecured personal loans mean that there is no collateral against the loan. This will result in your having to pay a higher interest rate, and you will most likely be given less time to pay the loan back.
Home Equity Loans-
If you have lived in your own home for a while, then this is an option you need to consider - especially if you have a lot of debt. This type of loan, usually a second mortgage, will provide you a lower interest rate than most other forms of credit. It will also enable you to potentially get a large amount of cash, depending on how long you have lived there.
A home equity loan is a convenient way to be able to consolidate your debts, and it could enable you to get some extra money for some renovation project around home, too. You will receive your money from a home equity loan in one lump sum, and you could possibly get up to 15 years to pay off the loan.
Whatever form you use to consolidate your debts, be sure to shop around. You can find some excellent deals, or get ripped off on interest rates if you are in too much of a hurry. Compare quotes and interest rates, as well as any fees that may apply. If you decide to get a home equity loan, you will also want to be careful about choosing an adjustable rate mortgage or a fixed rate mortgage. Since you must choose one, make sure it is an informed choice.
A New Balance Transfer Credit Card-
This kind of credit card will be useful to you if your overall debt is not very large. By getting a new balance transfer credit card, you can put balances on other credit cards on to the new one. You will want to find one with an introductory offer of 0% APR interest, which means you pay no interest for the length of the introductory offer. Some of these credit card offers last up to 15 months. You will need good credit to be able to get the lowest interest rates. Be careful not to make any late payments, or you may find that your introductory offer ends immediately.
Secured Personal Loans-
This kind of personal loans will enable you to consolidate your debts and get a reasonable interest rate, too. It will depend on your credit score, though. You can put all your debts into one easy monthly payment that should be low enough to handle comfortably. A secured loan will require that you put up something for collateral, like a car or your house.
Unsecured personal loans mean that there is no collateral against the loan. This will result in your having to pay a higher interest rate, and you will most likely be given less time to pay the loan back.
Home Equity Loans-
If you have lived in your own home for a while, then this is an option you need to consider - especially if you have a lot of debt. This type of loan, usually a second mortgage, will provide you a lower interest rate than most other forms of credit. It will also enable you to potentially get a large amount of cash, depending on how long you have lived there.
A home equity loan is a convenient way to be able to consolidate your debts, and it could enable you to get some extra money for some renovation project around home, too. You will receive your money from a home equity loan in one lump sum, and you could possibly get up to 15 years to pay off the loan.
Whatever form you use to consolidate your debts, be sure to shop around. You can find some excellent deals, or get ripped off on interest rates if you are in too much of a hurry. Compare quotes and interest rates, as well as any fees that may apply. If you decide to get a home equity loan, you will also want to be careful about choosing an adjustable rate mortgage or a fixed rate mortgage. Since you must choose one, make sure it is an informed choice.
Thursday, March 20, 2008
Student Consolidation Loan: How Consolidating Student Loans Can Keep You Out Of Debt
The repayment of Federal student loans generally begins after the borrowing student has completed his or her education and an additional grace period after that. However, due to various reasons students opt for student Federal loan consolidation. However, there is a certain eligibility criterion that you must fulfill and a process that you must follow before you can be entitled to Federal debt consolidation of student loans. Again, it is important to note here that such processes and criterion might be reviewed and revised from time to time. So, it’s important that you check on them with the concerned authority.
As per the Higher Education Reconciliation act of 2005, the eligibility criteria for student loan consolidation by FFEL and Direct Stafford loan borrowers has been defined a bit differently. Now, such borrowers will not be eligible for consolidation loan if they are still studying i.e. they are not eligible until the time they leave school or graduate or have enrollment that is less than half-time. For PLUS loan borrowers, the consolidation eligibility begins as soon as the full disbursement has happened.
Private student consolidation loan is a low interest student loan. People having outstanding non-federal education-related expenses can apply for this loan. But he or she should be a holder of US citizenship. If not, the applicant must at least be a permanent resident.
Generally, the minimum loan amount is $10,000 while the maximum amount that can be borrowed is $250,000. The amount also decides the repayment periods. If the amount borrowed is below $40,000, the repayment period is fixed at a maximum of 20 years. However, if you borrow more than $40,000, you can enjoy a longer repayment period of up to 25 years.
This student loan consolidation is quick to get approved. The interest rate on private student consolidation loan is the prime rate and is adjusted on a monthly basis. The interest rate is also dependent on the credit record of the borrower. A good credit record will attract a lower interest rate. As such, the interest rate is variable.
The prime rate is 7.0 percent (at the time of writing this article). Initially the margin may vary between 0 percent and 9.90 percent and is adjusted based on the changes in the margin adjustment index.
This student loan debt consolidation can be utilized to consolidate all debts relating to education, which also include private loans as well as federal student loans. If you want, you can consolidate for more than one child. Spouses have the choice to consolidate multiple loans into a single consolidation loan.
Take care guys.
As per the Higher Education Reconciliation act of 2005, the eligibility criteria for student loan consolidation by FFEL and Direct Stafford loan borrowers has been defined a bit differently. Now, such borrowers will not be eligible for consolidation loan if they are still studying i.e. they are not eligible until the time they leave school or graduate or have enrollment that is less than half-time. For PLUS loan borrowers, the consolidation eligibility begins as soon as the full disbursement has happened.
Private student consolidation loan is a low interest student loan. People having outstanding non-federal education-related expenses can apply for this loan. But he or she should be a holder of US citizenship. If not, the applicant must at least be a permanent resident.
Generally, the minimum loan amount is $10,000 while the maximum amount that can be borrowed is $250,000. The amount also decides the repayment periods. If the amount borrowed is below $40,000, the repayment period is fixed at a maximum of 20 years. However, if you borrow more than $40,000, you can enjoy a longer repayment period of up to 25 years.
This student loan consolidation is quick to get approved. The interest rate on private student consolidation loan is the prime rate and is adjusted on a monthly basis. The interest rate is also dependent on the credit record of the borrower. A good credit record will attract a lower interest rate. As such, the interest rate is variable.
The prime rate is 7.0 percent (at the time of writing this article). Initially the margin may vary between 0 percent and 9.90 percent and is adjusted based on the changes in the margin adjustment index.
This student loan debt consolidation can be utilized to consolidate all debts relating to education, which also include private loans as well as federal student loans. If you want, you can consolidate for more than one child. Spouses have the choice to consolidate multiple loans into a single consolidation loan.
Take care guys.
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