Good news has just been announced to American citizens, especially those whose total debt amount has surpassed ten thousand dollars. This is because if you fall under this category then you could be eligible to receive a stimulus package that has been set aside by the Obama administration. The package is aimed at helping those among American citizens who are struggling to pay their debts. Both federal and private government consolidation programs are aimed at negotiating away part of your debt, enable you pay lower interest rates, and then reduce your bills into one payment that is manageable. Spreading across the land like bushfire, the news is giving hope to Americans overburdened by high interest rates on their debts.You stand no chance of losing anything when it comes to inquiring about your eligibility for these government consolidation programs that are free. The internet has been touted to be the mother of all information, something that will allow you to browse various sites and take a look at the process of application. If you are perhaps worried that you might come across technical terms which might pose a threat, the sites are able to interpret them all for you. All that you might be required to provide is only some basic information about yourself, before you proceed to view the options available and which will allow you to know the amount that you expect to save each month.Through browsing these websites, you are also in a position to find out if you qualify for debt negotiation, something expected to lower your balances and do away with any outstanding balance and fees. Debt consolidation programs that have been instituted by the federal government are such that they take the total sum of all your bills and loans such as the credit cards, medical bills, automotive loans etc and then pay them off in full. Besides that, you will be awarded the peace of mind allowing you to worry only about a single manageable size of monthly payment other than numerous ones.A perfect example of such a program is the Direct Loan Consolidation program that has helped numerous Americans. Note that there are no forms of charges required when browsing the website for the determination of the best type of federal government debt consolidation program that best suits you. Soon after establishing a program that best works for you then indulge in lowering your debt and also repairing your FICO score.
When the economy was thriving it seemed like there was a great new credit card offer in the mailbox every week. Many of us couldn’t resist the temptation of growing our spending power and living a little bit further beyond our means. Now the economy is not so hot and those credit card bills are catching up to us, especially those who have lost their jobs, had shifts cut, and are only making enough to make it by month to month. If you are just barely making ends meet while drowning in credit card debt, medical bills, or other debt, you definitely will want to learn the facts on Government sponsored debt relief programs.Government aid in debt consolidation has received millions of dollars in additional funding this year, and is expected to receive even more federal funding in 2011. Government debt consolidation programs work by eliminating your high interest debts and replacing them with one low interest loan, with a single monthly payment that is custom tailored to suit your personal financial situation. It’s win-win for the entire US economy as the creditors get their loans paid off by the government and you benefit by receiving lower interest rates, lower monthly payments, and protect your credit score.Along with government sponsored debt relief programs, there are also many great privately owned consolidation lenders who offer equally helpful debt relief programs. The easiest way to determine which of these programs is best for your financial needs is to request a free quote online. This can be done on one of several debt consultation websites online, and will give you a better insight into exactly which programs are available to you, and how much you can save with a debt consolidation loan.
For students who need help in paying for their costly education, students loans are a great help indeed. The problem is most students have huge debts when they leave and finish college. Not only that, they tend to have more than 1 loan from various lenders, summing up to a more large debt they will have to pay. So how can one solve this problem? With a student loan debt consolidation of course!Loan consolidation is an effective way to bundle all your student-loans into 1 with only 1 lender and 1 repayment option plan. With it, your existing student loan balances will be paid off and the total balance will be made into just one consolidated loan, making it less stressful.When you consolidate your loans, your loan will be locked into just one fixed lower interest rate and that of course means, saving you thousands of hard-earned dollars. Not only is it pretty much convenient as it combines all your loan payments into just one monthly bill but it also significantly lowers your monthly bills.Not only that, your consolidated loans will have repayment options that are flexible with no charges or even prepayment penalties. And you don’t even need co-signers or have your credit checked when you consolidate your student loans.A student loan debt consolidation works best if the consolidated loan would offer a lower interest rate compared to your current student loans especially if you have problems paying monthly. But if you’re almost done paying off your student loans then consolidation would not be the best option for you.For you to be able to consolidate your student-loans, you should have eligible student-loans that would total over $7,500; you have not consolidated your loans yet or you may have gone back to school since you last consolidated; you don’t have any new loans; you have more than 1 lender; and you are already in your 6-month grace period or you are starting to pay your student-loan debts.Now, in order for you to know your consolidated loan’s interest rate, calculate by getting the average of the interest rates of all your loans that are to be consolidated and then round them up to the next 1/8 of 1%. 8.25% is the maximum interest rate. However, the interest rate will just be the same for all lenders but some offer discounts for keeping monthly payments debited from your account directly and some even go with a future rate discount when payments are done promptly.One good tip for you to get a lower interest rate is to consolidate your loans while you’re on your grace period.So if you have decided to go through loan consolidation, just keep in mind that you can only do it once unless you decide to go back to school and acquire new student-loans. Because of this, it is highly-recommended to think twice and get the best deal so as to never have any regrets.