Debt consolidation loan

Answer 1

Depending on what your asking.

Your local bank or credit card company may be able to help you consolidate high interest debt with a debt consolidation loan. If you are looking to free up some cash flow by using a debt counseling service then you may be able to consolidate some of your high interest unsecured debt (credit cards) by working through a counseling company and the credit card companies.

Keep in mind, having steady income is important to factor in when entering a debt counseling/consolidation program.

Answer 2

form_title=Learn more About Debt Consolidation Loans form_header=If you're in financial trouble, consider consolidating your debts into a reasonable debt load. How much money do you need?=_ Describe your financial problems?=_ Do you know how much of your debt is in collections?=_

Answer 3

Debt consolidation loans are an excellent way to combine numerous monthly payments into a single payment. However, there are items to be aware of, both for and against, concerning consolidation loans. Below are several aspects you should keep in mind when considering these types of loans.

These loans come in different varieties. Home equity, second mortgages, signature loans, 401K withdrawals, and so on are forms of available financial assistance. However, there are several problems a vast majority face when obtaining consolidation loans.

Discipline or the lack thereof with regards to a consolidation loan can make or break the borrower. Suppose after consolidating, there is now $800 or $900 extra in the budget. If the borrower goes out and starts charging purchases again, the loan was futile. Along with discipline, the borrower needs to have a plan in place.

Having a plan will help in removing the impulse to spend this extra money. Create a list of necessary items that need attended to. Perhaps the borrower has vacation coming up. Set back money for the trip instead of using credit cards. Maybe there is a need for minor car maintenance. This would be a great time to paint the house or do some landscaping.

Regardless of the reason, when the decision is made to consolidate, shop around for the best rates. Because consolidation loans, other than home equity and refinancing, are generally unsecured debt, they carry higher interest rates. Contact banks and credit unions for their specific terms.

If the institution requires some form of collateral, make certain of the terms of repayment. The borrower does not want to miss something such as a variable rate, a balloon payment, or penalty for early payoff. If you have property at risk, make sure the terms of the loan are fully understood.

Remember, consolidation loans are just that, consolidation. They are not meant to curb debt so the borrower can resume past spending habits. Maintain discipline, establish a plan prior to consolidation, and shop around for the best terms. Keeping these aspects in mind will raise the confidence level of the borrower, will help bring peace of mind, and place the borrower on a path to financial recovery.

Answer 4

Debt consolidation loans are an excellent way to combine numerous monthly payments into a single payment. However, there are items to be aware of, both for and against, concerning consolidation loans. Below are several aspects you should keep in mind when considering these types of loans.

These loans come in different varieties. Home equity, second mortgages, signature loans, 401K withdrawals, and so on are forms of available financial assistance. However, there are several problems a vast majority face when obtaining consolidation loans.

Discipline or the lack thereof with regards to a consolidation loan can make or break the borrower. Suppose after consolidating, there is now $800 or $900 extra in the budget. If the borrower goes out and starts charging purchases again, the loan was futile. Along with discipline, the borrower needs to have a plan in place.

Having a plan will help in removing the impulse to spend this extra money. Create a list of necessary items that need attended to. Perhaps the borrower has vacation coming up. Set back money for the trip instead of using credit cards. Maybe there is a need for minor car maintenance. This would be a great time to paint the house or do some landscaping.

Regardless of the reason, when the decision is made to consolidate, shop around for the best rates. Because consolidation loans, other than home equity and refinancing, are generally unsecured debt, they carry higher interest rates. Contact banks and credit unions for their specific terms.

If the institution requires some form of collateral, make certain of the terms of repayment. The borrower does not want to miss something such as a variable rate, a balloon payment, or penalty for early payoff. If you have property at risk, make sure the terms of the loan are fully understood.

Remember, consolidation loans are just that, consolidation. They are not meant to curb debt so the borrower can resume past spending habits. Maintain discipline, establish a plan prior to consolidation, and shop around for the best terms. Keeping these aspects in mind will raise the confidence level of the borrower, will help bring peace of mind, and place the borrower on a path to financial recovery.