Bad Debt Consolidation Is Close To A Dream.
You are going to be able to save money and lower your rates and payments at the same time with bad debt consolidation. A company will do it all for you.
These advertisements seem to be everywhere you look. Businesses who prey on those who are overwhelmed with debt.
They state that you can get debt relief with the click of a mouse, or cut your interest rates or payments in half.
These promises are extremely appealing to those who are sinking because of too much debt. They are willing to try anything to get it taken care of. Before you start looking at these companies, there are some things you should know.
There are three bad consolidation moves that you might take
Getting a consolidation loan is not the best choice. The interest rates are very high. While your payments might seem lower, it is going to take longer to pay it off. Bottom line, you end up paying more over all.
Second, is the consolidators who claim to handle everything. They promise to make your life easier by getting you lower interest rates and lower the monthly payment. All you have to do is give them a onetime setup fee.
This could not be farther from the truth. They make your payment to the creditor and the creditor gives them anywhere from 10 to 15 percent of your payment. Think about that. You are paying a fee every month if you think about it.
You can negotiate for lower interest rates and stretching out your payments on your own. Do you really want to pay someone else to do it for you?
Creditors are known for threatening debtors. Knowing this, you probably do not want to deal with them but, think about it this way. If you talk to several consolidation companies, you will find they all offer the same thing. Here is the kicker though. They tell you that it can take 32 years for you to pay off your debt on your own. They offer to cut that time down to 4 and half years. Look for a financial calculator on the internet.
Enter the numbers they gave you. You are going to find that you can pay off your debt faster on your own.
The other downside is that these companies are known for missing payments. Isn't that what you are trying to stop?
When you initially transfer balances from one credit card to another with lower rates you may believe that you are doing the right thing. Unfortunately, the lower rates are for a limited time only. In order to keep a low rate, you will have to apply for another card again and again. This type of activity makes you look like a credit risk and definitely hurts your credit score.
If you decide to transfer the balance, contact the credit card companies, tell them to close your account. Make sure they know to put closed at customer's request.
There are good choices you can make for paying off debt.
For a tax deduction and low rates, you might apply for a home equity loan. Use this money to take care of your debt.
You can also refinance your home if you have equity built up. Pay off your debt with the money you receive.
Alternative options are negotiating, personal loans or refinancing your car. - 23200
These advertisements seem to be everywhere you look. Businesses who prey on those who are overwhelmed with debt.
They state that you can get debt relief with the click of a mouse, or cut your interest rates or payments in half.
These promises are extremely appealing to those who are sinking because of too much debt. They are willing to try anything to get it taken care of. Before you start looking at these companies, there are some things you should know.
There are three bad consolidation moves that you might take
Getting a consolidation loan is not the best choice. The interest rates are very high. While your payments might seem lower, it is going to take longer to pay it off. Bottom line, you end up paying more over all.
Second, is the consolidators who claim to handle everything. They promise to make your life easier by getting you lower interest rates and lower the monthly payment. All you have to do is give them a onetime setup fee.
This could not be farther from the truth. They make your payment to the creditor and the creditor gives them anywhere from 10 to 15 percent of your payment. Think about that. You are paying a fee every month if you think about it.
You can negotiate for lower interest rates and stretching out your payments on your own. Do you really want to pay someone else to do it for you?
Creditors are known for threatening debtors. Knowing this, you probably do not want to deal with them but, think about it this way. If you talk to several consolidation companies, you will find they all offer the same thing. Here is the kicker though. They tell you that it can take 32 years for you to pay off your debt on your own. They offer to cut that time down to 4 and half years. Look for a financial calculator on the internet.
Enter the numbers they gave you. You are going to find that you can pay off your debt faster on your own.
The other downside is that these companies are known for missing payments. Isn't that what you are trying to stop?
When you initially transfer balances from one credit card to another with lower rates you may believe that you are doing the right thing. Unfortunately, the lower rates are for a limited time only. In order to keep a low rate, you will have to apply for another card again and again. This type of activity makes you look like a credit risk and definitely hurts your credit score.
If you decide to transfer the balance, contact the credit card companies, tell them to close your account. Make sure they know to put closed at customer's request.
There are good choices you can make for paying off debt.
For a tax deduction and low rates, you might apply for a home equity loan. Use this money to take care of your debt.
You can also refinance your home if you have equity built up. Pay off your debt with the money you receive.
Alternative options are negotiating, personal loans or refinancing your car. - 23200
About the Author:
Layla Vanderbilt is the webmaster for a leading website that offers for debt consolidation advice and guidance.
posted by X - Men @ 6:03 AM
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