What is Student Loan Consolidation?

What does it mean to consolidate your student loans?To consolidate your student loans means to take all of your various loans and give them to one company. One benefit of this is that, often, you can get a lower monthly rate.Benefits:
Consolidating your student loans has other benefits. Listed below are a couple more of them:
-Only one payment: Consolidating simplifies your finances by allowing you to write only one check instead of several checks.
-Spend less: Find a lender that will charge you a lower monthly interest rate and let them consolidate your loans.
-Helps build credit: At the time you consolidate, your new lender will repay your previous loans and merge them to make 1 new one. Because your former loans were fully repaid, your history looks better which, consequently, improves your credit rating.
-Lock in interest rate: When you consolidate your interest rate is locked in. This protects you from future interest rate increases.Consolidation loans are great because they are easy to get. You don’t need to be employed or have collateral or a cosigner to consolidate your loans. You don’t even need good credit!The Problem With Consolidation:
There are usually disadvantages to every decision. Check out all the pros and cons of consolidation before you do it. Here are a couple disadvantages you may want to consider:
-Interest rates fall every now and then. If you have consolidated, you are stuck with one rate.
-Once you consolidate you cannot “unconsolidate”.
-The consolidated loan will have new terms and conditions that your other loans didn’t.
-If you choose to extend the life of the loan you will wind up spending more (in interest) than you would have.Since we have reviewed the benefits and disadvantages of consolidating your student loans, you should find out if you are eligible for one. To be eligible for federal student loan consolidation, you must meet a couple requirements. You have to have at least ten thousand dollars. You must be graduated as well. Finally, you must repair any defaulted federal loans before you will be allowed to consolidate.

Where Do I Get Bad Credit Loans to Consolidate My Bills?

If your credit rating has taken a beating, you may be struggling to pay the bills. Low credit scores are often accompanied by abruptly boosted interest rates, which lead to higher expenses. Debt consolidation is a great way to get a handle on your bills, even if you have bad credit. Are you wondering, “Where do I get bad credit loans to consolidate my bills?” Keep reading to find the answer.Consolidate Credit Cards with Bad CreditIf you have a lot of debt on high interest credit cards, you have three choices to consolidate your bills: a credit card balance transfer, a home equity loan or home refinance, or a personal loan. A balance transfer will get you the lowest rate, but only temporarily. A personal loan will have a rate that’s lower than your current credit card interest rates for a longer term, but it may still be relatively high if you have a very low credit score. Contact your bank to ask about a personal loan. You may also receive offers in the mail. Carefully research the lender before agreeing to any offer you receive in the mail.If you own a home, a home refinance or home equity loan is your best option. Because the loan is secured by your home, the interest rate is lower than you’d find with a credit card or personal loan. The rate won’t be the lowest possible, however, because those are reserved for borrowers with excellent credit. You may also find that the rate is lower if you have more equity in your home because it gives the bank a bigger financial cushion if you default.Tax deductions are another advantage to home equity loans. Mortgage interest and most interest for home equity loans or lines of credit is tax deductible, which will free up a little extra cash for paying those bills.Consolidate Student Loans with Bad CreditIf you need to consolidate federal student loans, you’re in luck. The federal government regulates the interest rates and consolidation rates. You will almost certainly qualify for a reasonable interest rate from any student loan consolidator. Start with your current lender, but contact a few others to see if their terms and discounts vary. Consolidating is more complicated with private loans, but it may still be possible. Contact your current lender for information, then search for lenders online. Ask a few for quotes before accepting an offer.When it comes to student loans, you should avoid combining them with other debts or paying them off with a home equity loan or cash-out refinance. This is because most federal student loans are forgiven at death or permanent disability and can be deferred while you’re alive. You lose these benefits if you swap them for a different kind of debt.If you have bad credit, consolidating your debt and bills is a great way to improve your credit history. By paying down debt, you also improve your financial future and your ability to qualify for better credit. No matter what your credit is like, you’ll be able to find someone who is willing to take a risk on you.

Credit Card and Student Loan Consolidation

For those students who are just finishing college, please make sure that your finances are in order before leaving. Everyone knows that it is very hard to get through your years at college without some sort of college student debt. Make sure you know how much money you can afford to pay on your current credit card and student loan consolidation.If credit card and student loan consolidation is handled before leaving the current course of study, it will be much easier to deal with it and get it paid off in a timely manner.Most of the charges to be included in the credit card and student loan consolidation are the fees the lenders charge for giving you credit in the first place. This gives the credit repair companies and agencies a chance to reduce the total you owe, sometimes by almost half.Credit Card debt can get out of hand fast if not taken care of as soon as you start creating a life outside of college for yourself. A credit card and student loan consolidation program can allow you to make a lower monthly payment than you might have expected, allowing you to have more funding for life’s necessities.So if you are considering credit card and student loan consolidation, do your research to make sure you have all of the facts to make an informed decision about your debt. Remember to make a budget as it is essential for a healthy financial life for many years to come.

Top Credit Card Debt Consolidation Loan Programs

Let’s face it, us Americans love our credit cards. In fact, we now use them for nearly 50% of all personal purchases made across the country. That’s a lot, and whatever the reason is for you using yours, one thing is certain, you’re going to have to pay them all back eventually PLUS interest.. or are you?Help, I’m Drowning in Credit Card Debt!Along with the increasing popularity of plastic, has come an epidemic of Americans charging their way into seemingly inescapable levels of debt. However, lucky for you, there is help available. The most common type of this financial help is called debt consolidation.A debt consolidation program works by eliminating all of those high interest bills that have been plaguing your finances, and replaces them with one easy to manage low-interest loan, with one payment each month. By reducing your overall interest rate, you will pay less each month and have more money to put towards reducing and eventually eliminating your debt completely.How To Find the Best ProgramJust like when you are shopping for a new TV or sofa, you are going to want to shop around and compare offers from different debt consolidation programs and companies. Luckily, this is as easy as checking your email. You can request free, no obligation, online quotes from several different companies on the Internet. By doing this, not only will you satisfy your curiosity and see how much you can save, but you will also be able to see which program will save you the most money and get you out of debt the fastest.

Second Mortgage – Home Equity Vs Refinance

Why should you take out a second mortgage or a home equity line of credit instead of refinancing?Well…You Shouldn’t!Why Not?1. Second Mortgages usually have an interest rant that is twice or even three times as high as your first mortgage rate. You can refinance instead and keep a very low rate. In the long run a second mortgage will just cost you money in interest charges.2. Home equity lines of credit are designed for mortgage account executives (salespeople) to sell you on using it like a credit card attached to your home. They will try to convince you to use it over and over again.3. A refinance loan is better for the equity in your home. Very few companies will refinance your home at 100% of it’s value without forcing you to take out a second mortgage. You don’t want to use 100% of your equity because that means you no longer have that equity to fall back on in emergency situations.4. Second Mortgages and Home Equity lines of credit are designed to provide account executives (salespeople) with another tool to sway you into putting another commission in their pocket.5. Your equity is a precious thing and should not be used for unnecessary add ons or impulse buys. If you don’t need it and there is even a slight chance you can’t afford it, then don’t get a second mortgage to buy it.The only reason that I would ever recommend a second mortgage or a home equity line of credit is in an emergency situation. Only when there is no other option and you must take out a loan would I recommend either one of these options.

Bill Consolidation Debt Help

One of the most frustrating parts of being in debt is trying to figure out all of your different payments. It seems like just when you’re on top of your finances, another bill arrives in the mail and throws you off kilter again. For people trying to pay down their debt, this inconsistency can be very upsetting and discouraging. If you want to manage your debt, bill consolidation might be a good option. Bill consolidation is not for every situation, but it might help you.Paying Off Debt – Bill ConsolidationHow it WorksBill consolidation works by bringing all of your debt under one lender. The lender then charges you one monthly payment for your debt instead of the multiple payments you have had in the past. Sometimes your single payment is even lower than your multiple payments combined.Usually, you can start bill or debt consolidation by applying for a secured loan. Your home or property secures this loan, so you must be completely sure that you can make your new monthly payment before you sign on the dotted line. Once you have your new loan, you can use it to pay off your old debt. than your current bill situation. Consolidate if you can get a better interest rate or if you are having trouble
making your minimum payments on your current debt.When it WorksDebt/bill consolidation works when you can actually get a better arrangement for yourself than your current bill situation. Consolidate if you can get a better interest rate or if you are having trouble makingyour minimum payments on your current debt.Don’t consolidate if you are close to paying off your debt or have great interest rates. Because a longer term will cost you more in interest, it could be detrimental to your finances to consolidate under these circumstances. Also, don’t consolidate unless you’re committed to paying down your debt. Because you secure your new loan against your property, you could lose your home if you continue to accrue new debt and have trouble making your minimum payment on your consolidation loan.Why it WorksYou may wonder why another lender would want to take over your debt and make life easier for you. Lenders make money off the interest that you pay, as well as fees and other charges. They also can take your home if you’re not able to make your payments, so they’re able to offer you lower interest rates than other creditors.Often, to help you manage your debt; bill consolidation will extend your payment term. The result is that your lender gets to charge you Interest over a longer period of time, which can increase the total amount of interest you have to pay. Now, you may cringe at the idea of paying your lender more in interest, but if your bills are completely unmanageable, paying that extra interest could help you pay off your debt. Missing payment can also cost you a bundle in extra fees, so you might just save money over the long run.Take a look at your consolidation options and at your current finances. It is much better for your finances if you can cut out a few extras and pay off your debt in a few years than it is to consolidate. However, if you are legitimately having trouble making ends meet, debt or bill consolidation might be the best choice for you.

Bad Credit Debt Consolidation Loans

Are you looking to consolidate credit card or other debt? Do you have bad credit history? There are many options available online nowadays to help you consolidate your debt. Whether you are wanting to consolidate credit card debt or other kinds of debt, it can be overwhelming searching online to find the best ones for your situation. Here is a short overview of what kind of debt services are available online.If you are looking for a loan to consolidate your debt, you will need to qualify for the loan, just like any other loan. If you have a home, you may be able to get an equity loan using your equity or even go over the appraised value of your home in order to get the financing you need.You may be able to qualify for an unsecured loan, which can consolidate your debt with one low monthly payment with no ties to any of your assets.There are other companies that will help you manage your debt without having to use another loan. These companies usually charge you a fee and then help negotiate lower interest rates with your creditors and manage your monthly payments. There are various ways to do this and every company is different. Usually these techniques will save you money to start paying down the principle on your credit balances.Some of these companies are definitely worth the small monthly fee, and can save you much more than they charge. But, some of these companies are not legitimate and can take your monthly payments and keep them for a month or more before they make your payments (collecting interest on the money all the while), causing you to accrue late fees and possibly collections. These companies can actually cost you money and make your situation worse.Be careful when searching for debt consolidation companies to work with. Make sure they are legitimate, long standing companies before you sign on the dotted line. To see our list of recommended debt consolidation lenders click on the link below.Consolidating your debt can provide great relief and breathing room when it comes time to pay your bills. Sometimes, when you are up to the hilt in debt, it can be so overwhelming just keeping up with your bills that it can be difficult to think about ways to start paying the debt down.To see our list of recommended debt consolidation service companies, visit this page:
Recommended Bad Credit Debt Consolidation Services and Lenders.

Home Equity Loans For People With Bad Credit

Most people believe having bad credit means you can never get a home loan. Not true! No matter what your credit rating is, their are mortgage lenders that will help you to get a home equity mortgage loan.Whether you’re looking to tap into the equity you’ve built up in your home, or refinance to a lower interest rate you can get a loan, even with bad credit.Many homeowners give up trying to get approved for a home loan to soon. With one easy online loan application you can have numerous home equity lenders competing for your business. When you apply online you have access to lenders for all credit types.A home equity loan can be used for just about anything – from paying off high interest credit cards to making home improvements. You can clean up old debts, and get on the road to a better credit rating.A fixed rate home equity loan will let you pay off all those credit cards in one shot, and leave you with just one low interest monthly payment you can manage.Renovations and remodeling are also good uses for a home equity loan, as they enhance the value of your property. Good uses include: landscaping, appliances, additions, new roof, energy efficient furnace and the like.Don’t let bad credit stop you from getting competitive loan quotes. There are lenders around the country who want your business, and will compete to have your business by offering the best deals possible on home loans.

Debt Consolidation: Second Mortgage or Unsecured Loan?

If you are like most Americans you’ve probably racked up considerable debt trying to keep up with the Smith and Jones families down the street. According to Cardweb.com, the leading online publisher of information pertaining to credit and other payment cards, you are not alone. In 2004, individuals who earned between $75,000 and $100,000 per year, and had at least one credit card, carried an average revolving balance of nearly $8,000. This does not even include other personal debts such as car loans, which can total in the tens of thousands.If credit card debt is keeping you up at night, you’re probably wondering what you can or should do about it. File for bankruptcy? Refinance? If you refinance, is a fixed mortgage rate or an adjustable rate mortgage better? What about a home equity loan? The simplest answer of course is to get a debt consolidation loan.What is a Debt Consolidation Loan?Simply put, a debt consolidation loan lumps all of your debts together and pays them off using a single new loan. The next question of course is how to go about getting a debt consolidation loan. Visit a loan shark? Take out a second mortgage on your home? Apply for an unsecured loan at the bank and hope for the best? For the majority of folks a visit to the local loan shark is not a viable option; but taking out a 2nd mortgage or obtaining an unsecured loan from the bank are both excellent choices.Whether you use a second mortgage or an unsecured loan to pay off credit card debt, often depends on several important factors including whether you actually own a home, what your credit rating is, and what the total dollar amount of the credit card debt is that you owe to various financial institutions. According to one expert we spoke to who used to work in the unsecured loan business but now runs his own mortgage broker business, “The most important consideration is the borrowers credit history.”2nd MortgageA second mortgage is a loan or mortgage that is taken out after a first mortgage. It is similar to a first mortgage in that it uses the equity built up in a home as collateral. Similar to a first mortgage, a second mortgage consists of a fixed dollar amount that is paid out in one lump sum and repaid over a period of time typically 15 or 30 years. A 2nd mortgage may be either a fixed rate or an adjustable rate mortgage.Sometimes called a junior mortgage or junior lien, a 2nd mortgage is subordinate to a 1st or primary mortgage. What this means is that in the case of default, the lender for the first mortgage gets paid before the lender who issued the second mortgage does. As such, a 2nd mortgage is considered to be a higher risk and lenders often charge a higher interest rate; however, this rate is generally lower than an unsecured loan or the interest charged on most credit cards.Second mortgages are tax deductible, a major advantage for most people. The payback period is over a fairly long period of time so monthly payments are lower and the total loan amount is generally larger. “There are some cons to consider when thinking about taking out a second mortgage,” explains Brett Bostwick, owner of Snowbird Mortgage Company. “It takes longer to get approved, there is more paperwork involved, and because it is a mortgage loan, there are closing costs such as appraisals and title searches,” he says.Unsecured LoanAn unsecured loan is a lump sum payout that is repaid at a fixed rate of interest in equal payments over a short period of time, typically 5 years or less. Unlike a second mortgage, collateral is not necessary to secure the loan. Loan amounts are relatively small, usually less than $15,000.Interest rates on unsecured loans, which are sometimes called signature or personal loans, are determined by whether you are considered a good credit risk. In other words, the higher the credit score, the lower the interest rate will be and vice versa. A bad credit score will earn you a higher interest rate, sometimes the same or higher than the credit card interest you are paying. This is compounded by the fact that an unsecured loan is considered a higher risk (no collateral), and lenders may charge interest rates that are often quite high, generally higher than the interest rate on a second mortgage would be, but usually less than that 18%-plus interest credit card debt you are trying to pay off.Unsecured loans have a couple of advantages over second mortgages in that approval process is much quicker and there are no additional costs involved. Because the loan period is shorter and the interest rates are higher, monthly payments are also higher. Nor is the interest is not tax deductible. However, if you default on the loan, it may damage your credit but you won’t lose your home.The Bottom LineIt really depends on your situation. What is best for a co-worker or neighbor might not be the best choice for you. Most experts advise getting a 2nd mortgage if you are paying off a larger amount of bills and you don’t mind paying closing costs or the longer approval process required for a second mortgage. If you need money quickly and only have a small amount of debt to consolidate, it’s probably better to go for the unsecured loan.Of course unless you exercise restraint, change your spending habits, and stop using those credit cards, you will fall right back into credit card debt. With a little hard work and perseverance however, you will remain credit card debt free…and able to keep more of those hard-earned dollars in your pocket instead of handing them over to the bank.

Using Credit Cards to Get More Out of Black Friday Sales

For many people, Black Friday shopping is a ritual. They start on Thanksgiving by getting the circulars that are advertising the sales that will be offered Friday morning. Many people then set up a plan to camp out at those stores, sometimes in freezing temperatures, so they can be the first in line when it comes time to shop and get the limited specials.There is a better, and warmer way to get in on great holiday sales. Use your credit cards.Learn What Your Credit Card OffersMany credit card companies have seasonal specials of their own hoping you will make your holiday purchases on their cards. Take a little time out today to log on to your credit card company website and look for any of the specials they are advertising. You may find a list of stores they are working with to offer something a little extra on your Black Friday shopping. Perhaps they will offer double or triple points or cash back for the purchases you make with your card through select stores.Find the Black Friday DealsNext you need to do a little research to find out what Black Friday deals are out there for you to take advantage of. Make a list of the ones that you are most interested in. Now see if any of those stores are also companies that your credit card company is offering a special savings with. This way you can double or triple up on rewards when it’s time to buy.Start ShoppingOne thing you need to remember when it comes to Black Friday sales is that they start at the crack of early. Generally they begin at 12:01 A.M. on Friday morning, so you need to stay up late (or get up real early) to make sure you can get in on the online deals before they are sold out.Cyber MondayJust in case you don’t get all the shopping you had hoped to done on Black Friday, there is also Cyber Monday shopping. The Monday after Black Friday has become the biggest day for Internet sales of the year and many companies will be offering special sales this day as well.