Advertise with Us
Bookmark and Share

Are You Drowning Under Credit Card Debt?
And Finding Difficult to Repay Your Personal Loan,
While Keeping Up With Your Mortgage Repayments On The House?
A Debt Consolidation Program Can Get You Back ON TRACK.

Keeping track and keep up with repayments of credit cards, charge cards, loans and mortgages can be a difficult juggling act.

This is a scenario common to many modern working Americans...

You have a mortgage on the house in which you make regular repayments are a variable interest rate.

You might also have a personal loan which you applied to finance your new SUV.

On top of this, you have 5 different credit and charge cards which you applied for over the last few years - because the financial institutions promised NO JOIN UP FEES and NO INTEREST for 12 months.

You are probably finding out that you are now paying between 12 - 25% interest on some of the credit cards and charge cards depending on whether you have been drawing cash or just making purchases on them.

You debts seem to build up very quickly and can get out of hand in an instant.

Especially in the current financial situation!

Mortgage lenders and finance companies sometimes have an options to call up their loans (i.e. make you pay up immediately) especially if the value of your assets like homes depreciate drastically and you fall behind on your repayments.

To can going from doing well and making a decent living... to losing your home, your assets and your comfortable lifestyle and sinking into bankruptcy can all happen VERY QUICKLY.

If you are getting caught up in too many credit card bills, loan and mortgage repayments you will want to look at getting together a DEBT CONSOLIDATION PROGRAM.

Simply speaking, debt consolidation is a financial process of re-arranging all your debts into one combined loan, often with different loan conditions and interest rates.

The idea of debt consolidation is:

  • 1. Stream line you debt accounts
    It is easier for you to manage one account compared to 8 different loan accounts. You get one bill and you make one repayment at a time therefore you can keep track of your debts much easier.
  • 2. Pay one interest rate...hopefully LOWER!
    Debt consolidation can group all your loans and the outcome could be a lower interest rate, so you end up paying less interest on the combine amount. This is especially the case if your debt consolidation loan can be secure against your property or another physical asset.
  • 3. Help with your budgeting
    A debt consolidation program will help with budgeting your cash outflow so that you can easier and better prepare your personal financial budget. This is very important for you to manage you finances.
  • 4. Hold off bankruptcy - there are always other options!
    Using debt consolidation loan can stave off bankruptcy. Bankruptcy is a poor result for all the stakeholders. For you, it can limit your credit access and future buying power. For the banks or lenders, bankruptcy can result in them losing a client and interest income, as well as having no prospect of reclaiming their debt back from the client.
    A debt consolidation loan can insure that you remain afloat and that lenders can recoup their debts and continue operating soundly and keep the credit markets flowing.

Which debt consolidation program to chose?

There are a multitude of lenders who specialize in debt consolidation and even the credit card debt consolidation loan. It is worth doing the research on line as well as talking to your financial advisor or accountant to identify the best debt consolidation program to use.

Here are the some vital tips when choosing a Debt Consolidation option:

  • 1. Do you research
    There are plenty of online information sites and debt consolidation program review sites which will give you information about what products are available. Look at review sites and online forums that talk about different types of debt consolidation and lenders. It always pays to do the research so that you can avoid lenders and debt consolidation loans that maybe too risky for your situation.
  • 2. What lender?
    The lender needs to be local (based in the US), have support services and is registered to trade as a financial lender. Ideally, the lender should have no shady past records and should have an online presence as well as other service access points like phone and fax contacts for you to seek information and assistance. You may choose a lender that you have dealt with in the past and have good experience with. It could be your bank or a current lender for one of your debts.
  • 3. How much to borrow?
    You should only borrow as much as you need to consolidate all your debts. Do not borrow more than you need as then you will pay extra interest that you might not be able to afford. Also, you should look at a debt consolidation program that allows you to make extra repayments so that if your income increases, you can pay off your credit card debt consolidation loan much quicker. It can make a big difference in interest rate savings!
  • 4. The interest rate
    It is important that you chose a consolidation loan at the best interest rate for the longest period of time. Watch out for debt consolidation programs that give you an initial low rate then reverts to a much higher rate at a later period. This can spell DANGER!
    Depending on the amount of your consolidation loan and your credit history, you may be paying a little bit more interest on a consolidation loan compared to an asset based loan.
  • 5. Use your property?
    You must decide whether you will use your property as part of the debt consolidation program. Using your home as security can save you a lot of interest as the security provides less risk for the lender. However, you will need to weigh this against the risk of losing your home if your debt consolidation becomes untenable.
  • 6. Time and budget
    Always chose a debt consolidation program according time and make it part of your budget. Debt consolidation programs can run between 2 years to over 10 years so you must decide, with the help of a personal budget, how long you would like to set the debt consolidation loan over. Remember, that a longer loan typically means you will be paying much more interest and will subject you to more risk in the long run if interest rates go up and your consolidation loan repayment is not fixed.
  • 7. Read the fine print!
    Always read the debt consolidation loan contract property to make sure that you are comfortable with what you are signing! It might be a good idea to get someone with financial and legal knowledge to help you read the fine print so that you are not at further risk of sinking into further financial and legal difficulties.
    Debt consolidation, when done right, can be your savior to get your out of your financial black hole.

Make sure you tick off these criteria when looking at debt consolidation!

Review your needs and review all the options. Reading up on debt consolidation review sites is a great start to get you informed.

Choose a debt consolidation program with a reputable financial institution.

Use a budget along with your debt consolidation program to help build a personal financial system that will help you get control of your debts.

Use your property as security for debt consolidation as a last resort.

Always READ the FINE PRINT!

A Debt Consolidation Program, when properly organized, is a great financial tool to keep you above water.

It can be the life boat that keeps you from drowning in a sea of credit card and personal debt.