Debt Consolidation Loan – Invaluable Ally During Difficult Times?

Must Read

Hiring an Attorney

When is it wise for you to invest in an attorney? Quite frankly, any time you are faced...

Detroit Black Friday Potential Sales and Deals at Tanger Outlets Offers Savings for Christmas Gifts

With Thanksgiving just around the corner many people are waiting anxiously to take advantage of the many Black Friday...

Cash Out Refinance Vs Home Equity Loan – What’s the Difference?

The end of the second quarter of 2010 is almost at an end and mortgage interest rates are currently...

The economic crisis has badly affected the confidence of the masses in the economy and their well being. Job security has become a big thing and people are adopting conservative approaches towards debt. If you want to protect yourself, then opt for debt consolidation. The primary motivation behind debt consolidation is improvement of the cash position.If you want some extra cash in your hands, then debt consolidation is something you should consider very seriously. It will help bring down the interest rate charged on your debts – all your debts.Amongst all your loans, your home loan will be the cheapest because the risk of the lender is mitigated by the mortgage of the house. Hence, the lender will not charge high interest on the loan.At the opposite end of the spectrum is the credit card debt. It is unsecured and the lender has no protection if you default on repayment. Hence, banks and issuers charge high interest on this debt. You cannot avoid high interest payment on the unsecured debt.All Your Loans Combined in OneDebt consolidation combines all your loans – secured as well as unsecured into a single loan. This will bring down the interest rate charged on your loan. Further, it will bring down your monthly payments and leave you with extra cash in your hands. Consolidate your debt and balance your budget without any difficulty.Where is the catch? The catch lies in the fact that your consolidated loan will stretch over a longer period of time as compared to other loans. Hence, your interest payments will be significantly higher. Short term loans are consolidated with long term loans and are repaid together. A personal loan will not extend beyond ten years.On the other hand, a home loan may run for even 30 years. Your 10 year loan will be combined into your 25 year loan and you shall make repayment for the entire 25 year. You will be paying more on the 10 year loan. This cannot be avoided.This feature of consolidated loans must be acknowledged and provided for. Hence, you should go in for debt consolidation only if you face the risk of losing your home or ending up in bankruptcy due to immediate cash flow problems.A Better OptionDebt consolidation will help you tide over any crisis without any difficulty. Once things improve, you can proceed to make extra repayments to finish the debt quickly. Consolidation is much a much better option as compared to bankruptcy or foreclosure.


Please enter your comment!
Please enter your name here

Latest News

Underlight As Accent, For Power and The Main Light for Photography

Underlighting, in which fill or accent light comes from under the topic, is not widely used technique in the traditional Portraits,...

How To Fix Overexposure As A Creative Tool, The Complete Guide

As an creative tool, overexposure is sort of underrated. What I’m close to propose could be a deliberate and well thought out technique for...

7D Mark II is Canon’s best DSLR cameras without full-frame sensor.

The expected long-awaited Canon EOS 7D Mark II are shipping in November for $ 1,799 without a lens. With a higher price tag, you...

Low key photography and How to isolate your subject.

Low key photography doesn’t depend on underexposure to make its point; the key to low key is that the majority of tones, even correctly...

High Key Lighting Techniques for Professional Photographers

I’ve written many times about high key lighting techniques and how to achieve them. The term “high key” is a bit misleading. As I’ve...

More Articles Like This