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Loans For People With Bad Credit

personsl Loans for People with Bad Credit History

 

Realistic Loan Options for People with Bad Credit

Daniel Boortins, a well-respected historian once said, “it is hardly an exaggeration to say that the American standard of living was bought on installment plan”.  What happens to that standard of living when a consumer’s credit rating is so bad that lender’s refuse to give any more credit? Simple, the consumer uses another financial tool known as a loan. But first the consumer must be familiar with loans for people with bad credit, because those will be the only type of loans that the consumer will qualify for.

A loan is an agreement that can be entered into by natural or juridical entities, whereby money, property or any other type of asset is given at a predetermined or determinable future date by a lender to a borrower. The latter agrees to return the thing borrowed or its equivalent usually along with interest at some future time and in most cases on installment.  For example Mr. C lends five hundred dollars ($500.00) to Mr. B. with the understanding that the latter will pay the former the entire amount with ten percent (10%) interest, in five (5) monthly and equal installments starting January 1, 2012.  Therefore Mr. B has to pay Mr. C. one hundred ten dollars ($110) on the first of each month for five (5) months, starting January 1, 2012.

Consumer Credit is an indicator used by creditors to determine how much of a risk a consumer is in defaulting on a loan.  A poor credit rating indicates a high risk, and lead to higher interest rates, or the denial of a loan application. Therefore, loans for people with bad credit are limited by the calculated amount of risk a lender or creditor might be willing to accept.

Borrowers have to accept the reality that the provisos contained on loans for people with bad credit will not be as favorable to them as opposed to loan options for people with excellent or good credit. For example, Mr. A and Mr. B each take out a three hundred thousand dollar ($300,000.00) thirty (30) year fixed rate loan. Mr. A with excellent credit, which means a credit score of around seven hundred sixty (760) to eight hundred fifty (850) can expect to pay around five point seven percent (5.7%) interest, amounting to more than seventeen thousand dollars ($17,000.00) in interest payment. Mr. B who is a consumer with damaged credit, around five hundred (500) to five hundred seventy nine (579) can expect to pay nine point five percent (9.5%) in interest, amounting to around twenty eight thousand dollars ($28,000.00) in interest payment.

There are only a few types of loans for people with bad credit. First would be repairing their credit rating before taking out a loan.  This option is only available consumers whose credit rating is within reach of the required credit rating and who still have enough time.  For example, Mr. A has a five hundred seventy five (575) credit score and he applies for a car loan from Bank of B.  The latter is requiring a five hundred eighty (580) credit score at the very least.  Since the difference is only five (5) points and Mr. A has several disputes on his credit report, plus several bills due which he can pay on time, then it is worthwhile for Mr. A to repair his credit rating first. A delay of a few months may be better than a loan denial since this might also be taken into consideration by other lenders in the future.

Another one of the loans for people with bad credit would be to take out a loan with a cosigner who has excellent credit.  A cosigner is a person who signs the contract of loan together with the principal borrower and is considered a co borrower on the loan.  The excellent credit rating of the cosigner may be enough to compensate for the poor credit rating of the principal borrower.  This option is considered by some as one of the better loans for people with bad credit but is only realistic if the principal borrower can find a willing and sufficient cosigner for a loan.

A third loan option for people with bad credit is to consolidate and negotiate all debts and take out a single loan to pay off all overdue bills.  While most people will question the wisdom of taking out another loan and incurring another debt to pay off other debts, this is a viable option if the debt consolidation is done properly.

First, the consumer has to research lenders who are reliable and whose loan terms fit the earning capacity of the consumer.  Reliability is the key because some lenders will offer loan terms that are unrealistic and may even force a consumer to pay off only the interest while leaving out the principal amount. Reliability can be done thru research and cross referencing lenders with government and non government agencies that monitor lending institutions like the fraud department of a county or the Better Business Bureau (BBB). Second, the consumer must make a realistic calculation of their monthly income and expenses including emergency expenses for at least six months.  Whatever amount is left is the monthly loan amortization than the consumer can afford.  This will be the only time a consumer researches for reliable lenders.  Third, negotiate for a reduction of the principal amount and the condoning of interest and penalties.  Oftentimes all it takes to reduce a debt is to write a simple hardship letter or to plead with the debt evaluator.

In closing, there are still a few available loans for people with bad credit and these loan options can actually work, but the consumer must make sure to be religious in following a set income and expense, then properly researching the loan terms then asking for consideration from creditors. This is because being smart and choosing the right partner can spell the difference between being debt free or filing for bankruptcy.

 

Loans For People With Bad Credit

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What is a Good Credit Score

  • What is a Good Credit Score?
  • What is The Credit Score Range?
  • What is The Credit Score Scale?
  • What is The Average Credit Score?

Let’s take a look at the credit score breakdown

Most people know that their credit score plays an important role in their lives. This is the easy part, the more difficult part is actually understanding the credit score breakdown, or what goes into a credit score. There are a few different methods for calculating credit scores but the most commonly used is the FICO method that has been used since the 1980’s. The FICO method was developed by the Fair Isaac Corporation and the three big credit bureaus, TransUnion, Equifax and Experian, all worked together with Fair Isaac to develop this method.

For more information on FICO credit score please read here

FICOFICO credit score range

 

A persons credit score can range anywhere between 300 and 850. The average American score is around 690 which is a reasonably good score. Having the average score of 690 will enable you to secure a loan, however it will not get you the best interest rate on your loans.

Let’s take a look at the credit score breakdown.

The first factor is payment history. Payment history makes up 35% of the credit score. This is calculated based on whether you pay your bills on time or not and how many late or missed payments have been forwarded to collection agencies. It also considers if you have had any bankruptcies or tax liens. It can be difficult sometimes to meet financial deadlines if you get a heap of bills all come in at once but just remember that a missed payment is much worse than a late payment regarding your credit score. Missing a mortgage payment will affect your credit score much worse than missing a bill payment or credit card payment so always have your mortgage payment as first priority.

Next there is outstanding debt to consider and this accounts for 30% of your credit score. If you have a number of credit cards and they are all maxed out then this will have a very negative effect on your score, but if you have a number of credits that all have a lot of credit still available then this will work in your favor. Outstanding debt considers the amount of credit outstanding in relation to the amount of credit available to you. It can help your credit score to have a few credit cards that are not being used but simply to give you available credit to increase your score.

Credit Longevity is the next point that is considered when determining your credit score. How long you have established credit counts for 15% of your score. The longer you can maintain good credit and continue to pay your bills on time then the better it is for your credit rating.

Next there are the types of credit to consider. Around 10% of the score is related to the number of different types of credit that you have. If you have multiple types of credit, such as mortgage, car loan and credit card, and all are managed well then this will help with your credit score.

Amount of activity is the last factor to consider. Opening new credits card accounts to leave unused to increase your credit score is good, but not if you open too many new accounts at once. If you have too much activity happening in a short period of time this will negatively affect your score.

When you understand what is involved in the credit score breakdown then you can take steps to improve your score.

 

What is a Good Credit Score

Loans For People With Bad Credit

The Truth About Debt Consolidation Loans

 


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Debt reduction and elimination is an objective that almost every person in the world wants to reach. People who have enjoyed using credit cards are finally realizing the consequences of their actions and are therefore taking steps to solve their problems. People who want to accomplish the objective of total debt reduction and elimination often turn to experts for help.

Many professionals are available today to help people who want to get rid of their liabilities. These debt reduction and elimination services often analyze a client’s case and think up the best way to meet their objective. Often, these debt reduction and elimination companies will suggest different methods that a person can use to get rid of their obligations. One such method will be discussed in this article.

The meaning of the snowball method of debt elimination and reduction can already be deduced from its name. If you watch cartoons, then you might know what this means. A snowball, when rolled from the top of a hill, will gather speed and increase in size as it moves. This gives you an idea about what this method of debt reduction and elimination aims to accomplish.

The goal of this method of debt elimination and reduction is to eliminate your debts in a way that resembles what happens to a snowball. This means that it aims to help you start from paying off your small debts slowly, and working your way up to the big debts with increasing speed.

How is this done?

1) List all of your debts in order from lowest to highest – This will help you see your goal clearly and allow you to plan. Listing all of your debts will allow you to evaluate them in an orderly manner and this will enable you to plan your debt reduction and elimination strategy clearly.

2) Pay the minimum balance on all debts regularly – Creditors often set a minimum balance that you have to pay regularly on your debt. After you have listed down all of your liabilities, you need to commit yourself to paying their minimum balances regularly. This means that you will be able to slowly reduce all of your debts. However, this is not the main part of the snowball method of debt elimination and reduction.

3) Find out what is the extra amount you can pay – After you have made the minimum payments for all of your listed debts, try to find out if you can spend an extra amount to start paying off your smallest debt. This means that even though you will be reducing all of your debts, your smallest credit will be eliminated much faster than the others.

4) Repeat the cycle – After you have paid off your smallest debt, use the money you have budgeted for the minimum payments to pay off the next debt on your list. This means that the next debt will be accorded the following amounts:

a) The minimum payment for the debt

b) The minimum payment for the previous debt

c) The extra amount that you can afford

As you can see, the budgeted amount for each debt increases as each debt is paid off. This means that you will be able to pay off larger debts much faster; hence, the “snowball” effect. By using this method of debt elimination and reduction, you will be able to shave years off your payment schedule.

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Source: http://financeequityloans.com

Category: student loans

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Consolidating student loans is a great opportunity to lower your monthly payments and free up some cash each month. Here are some smart tips we have for you on the process of consolidating student loans:

If you are in your grace period, it is the best time to consolidate your student loans. You are in the grace period if you have finished school but you are not yet in the repayment period, which usually begins 6 months after your graduation. If you consolidate your student loans during your grace period you can usually qualify for a lower interest rate from the lender.

The federal government passed a recent law that lets borrowers consolidate their student loans with any eligible FFELP (Federal Family Education Loan Program) lender. This means that you have more lenders to choose from than you did in the past.

The federal government has set the interest rate on consolidation of federal school loans, and this is part of federal law, so lenders are legally bound and cannot charge you a higher interest rate for any reason. It’s always best for you to get the lowest interest rate you can from the lender that you choose, but interest rates on consolidating student loans that were backed by the federal government are fixed for the life of the loan and can’t be higher than 8.25%. That doesn’t mean that a lender can’t charge you less interest, so it still pays to shop around for the best rate.

If you have both federal and private student loans, don’t let your lender put them together into one consolidated loan. If you do, you will lose the federal benefits that are part of your federal loans. For instance, the cap on interest charged is at 8.25% now for federal student loans, and you would lose this cap if you consolidated both federal and private loans into the same loan. Deferment and forbearance are options that you can use with federal student loans if you fall upon bad economic times like losing your job to layoff or termination, becoming disabled and unable to work, etc. These are important benefits that you would be wise not to lose. Deferment is when the government allows you to postpone payment of the principal on the loan for a period of time. Depending on the type of loan you have, you may or may not need to repay the interest during deferment. Forbearance is when the government allows you to stop your payments for a period of time, but you still need to pay the interest payments. In both deferment and forbearance, there may be ways for you to add the interest payments onto the back of your loan so that you pay nothing during the period of deferment or forbearance.

The Higher Education Act was passed for the protection of students taking out loans for educational expenses. It specifically mandates that federal student loan consolidations have to have fixed interest rates, no processing fees or loan fees of any kind, no credit checks for the borrower, no prepayment penalties if the borrower pays off the loan early, and a lower interest rate if the loan is consolidated during the grace period.Title: Consolidate Student Loans – Smart Tips

Source: http://financeequityloans.com

Category: student loans

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Consolidating student loans is a great opportunity to lower your monthly payments and free up some cash each month. Here are some smart tips we have for you on the process of consolidating student loans:

If you are in your grace period, it is the best time to consolidate your student loans. You are in the grace period if you have finished school but you are not yet in the repayment period, which usually begins 6 months after your graduation. If you consolidate your student loans during your grace period you can usually qualify for a lower interest rate from the lender.

The federal government passed a recent law that lets borrowers consolidate their student loans with any eligible FFELP (Federal Family Education Loan Program) lender. This means that you have more lenders to choose from than you did in the past.

The federal government has set the interest rate on consolidation of federal school loans, and this is part of federal law, so lenders are legally bound and cannot charge you a higher interest rate for any reason. It’s always best for you to get the lowest interest rate you can from the lender that you choose, but interest rates on consolidating student loans that were backed by the federal government are fixed for the life of the loan and can’t be higher than 8.25%. That doesn’t mean that a lender can’t charge you less interest, so it still pays to shop around for the best rate.

If you have both federal and private student loans, don’t let your lender put them together into one consolidated loan. If you do, you will lose the federal benefits that are part of your federal loans. For instance, the cap on interest charged is at 8.25% now for federal student loans, and you would lose this cap if you consolidated both federal and private loans into the same loan. Deferment and forbearance are options that you can use with federal student loans if you fall upon bad economic times like losing your job to layoff or termination, becoming disabled and unable to work, etc. These are important benefits that you would be wise not to lose. Deferment is when the government allows you to postpone payment of the principal on the loan for a period of time. Depending on the type of loan you have, you may or may not need to repay the interest during deferment. Forbearance is when the government allows you to stop your payments for a period of time, but you still need to pay the interest payments. In both deferment and forbearance, there may be ways for you to add the interest payments onto the back of your loan so that you pay nothing during the period of deferment or forbearance.

The Higher Education Act was passed for the protection of students taking out loans for educational expenses. It specifically mandates that federal student loan consolidations have to have fixed interest rates, no processing fees or loan fees of any kind, no credit checks for the borrower, no prepayment penalties if the borrower pays off the loan early, and a lower interest rate if the loan is consolidated during the grace period.

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Science is said to be an organized or systematic body of knowledge. There are procedures or steps to follow such as testing the data before finally arriving at a definite conclusion. Debt elimination is also like science.

Why? Because there are important procedures that need to be followed for the deed to become successful.

Finding yourself in a pool of debt is no fun. Much more, you have to worry when you are into a serious deal of debts. You will just wake up one day that there are a lot of people who are calling you, writing you, or worst, suing you because you are unable to pay your dues. Can you bear this? Will you be able to deal with this matter?

When you have several debts, you seem to be working endlessly but then your wage is just enough to pay for the interest rates of your debts. And the science of debt elimination is all about educating you on how to deal with debts when matters tend to become worse. There are simple steps to follow that if you succeed sticking with the procedures, you are close to your way of solving your problems. All you need is a dose of dedication and a bunch of restraint.

The science of debt elimination talks about setting up a realistic budget that you know you can follow. Do not set up a precise budget but at the end of the day you find yourself going beyond it. That will be utterly useless. To settle things straight, it is only proper to look into the exact amount of money that comes to you and the amount that you spend for your needs. It is vital that you tally them. When you shop or dine, make sure that you jot down all of your expenses in order to know how much is left to you.

Start getting rid of the various unnecessary expenses. If you are fond of dining out for lunch and dinner, why not try cooking at home? By this you are able to save a lot of cash because fabulous dinners would only cost you too much. But if you do your own marketing and cooking, you will be able to save much. Furthermore, homemade delicacies are much healthier than those bought from the fast food outlets. With this will likewise come great savings for you.

Do an early holiday shopping. When the demand for things soars up, the tendency of the prices is to go up too. When you’ve found valuable items which you think will be a good gift idea for someone, grab the chance especially if they are up for sale. In due time, you will see the same items with the price almost tripled.

Sacrifice for once in the use of your credit cards. It must be a rule posed to yourself that credit cards must only be for emergencies. If you are usually spending with the use of your credit card, do not be shocked to find your credit limit too high. The credit card companies are tracking your expenses so do not fall for this trick.

The science of debt elimination simply talks about your certain planning and determination to eliminate it from your system. If you continuously apply the science of debt elimination, you will see your debt accounts gradually shrinking.

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Source: http://financeequityloans.com

Category: student loans

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Consolidating student loans is simple: If you meet certain requirements and you have student loans, you can consolidate them into a single loan. What this means is that the lender you choose will pay off the current student loan amounts that you still owe, and will combine the different amounts that you owe into just one loan. When the lender does this, you will probably see your monthly payment on student loans drop. And that’s just what you are looking for, an easier and more affordable way to pay down your student loans.

Both students with student loans, and parents who owe on PLUS loans that they took out for their students, can consolidate their loans. Consolidating student loans (as long as they are federal student loans) does not require that you have a credit check done to prove that you qualify. Is that surprising to you? Well it’s true. Your credit score, no matter what it is, does not disqualify you from getting a federal student loan consolidation approved.

To start out, you’ll need to know whether your loans are federal student loans or private student loans. Federal student loans have the backing of the federal government and are usually known as the Perkins Loan, Stafford Loan, PLUS (Parent Loan for Undergraduate Students) or loans from the Department of Education. There are also other kinds of federal student loans, so you’ll need to look at your student loan report to check on what type of loan you have. A private student loan is a loan that you or your parents took out from a private lender, and loans like this are not backed by the federal government and do not qualify for federal student loan consolidations.

If you are falling behind in your payments on this type of loan, call the lender that you make payments to and ask whether you can consolidate your loans with them or negotiate lower monthly payments.

For consolidating student loans, you have to:

Have at least $10,000 in student loan debt. This $10,000 must be all federal student loan debt, not a mixture of federal and private loans.

Be in your grace period or repayment period. Your grace period is the time period after you take out a loan before your payments start. Your repayment period begins after your grace period ends. Your repayment period is when you make monthly payments on your loan(s).

Not be in default status on any of your loans. Default status is when you have fallen several months behind in your payments and you have received a notice of default from the lender. If you are in default, don’t be afraid to look for a consolidation loan anyway. A lender may be able to work out an agreement on how you can pay off the default and still consolidate your loans.

Be a U.S. resident or permanent resident. Notice that citizenship is not a requirement, just residency.

Not have consolidated the same loans before, or have gone back to school and accrued more loans to consolidate with the original consolidation

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If you are looking for information about credit card debt elimination, then you should know that many sources are available out there for you. Here are some of them:

1) Books – Every human experience has a book written about it. This means that you will be able to find a lot of books containing credit card debt elimination information. What are the advantages to using books?

First of all, books are very reliable. This is because of the fact that books containing credit card debt elimination information are written by recognized experts in the field. Books are also very compact. A person who needs credit card debt elimination information can carry a book around and have access to that information immediately. Although the internet has been developed into a highly mobile technology, it still cannot beat a book when you need comprehensive information regarding something.

Books are also easily accessible. When you want credit card debt elimination information, you can just go to the local library to access it. Although the internet may provide the fastest access to credit card debt elimination information, not every person has access to the internet. However, everyone has access to books.

There are also disadvantages to using books. For one thing, books are not really updated constantly. If you do not have access to an updated book containing credit card debt elimination information, you may end up making use of a debt elimination plan that’s already quite impractical. You might end up wasting a lot of effort for nothing.

2) Internet – The internet is the largest collection of information today. People who need credit card debt elimination information often make use of the internet for various reasons. One of the reasons is the speed. While it can take some time to find the information you need from a book, a simple search on the internet can yield results in a matter of minutes or even seconds!

There is also the matter of convenience. With today’s technology, people are able to access the internet anywhere in the world. This means that you can do your research at home while seating in your favorite couch. People who need credit card debt elimination information often choose to search on the internet because of this advantage.

The internet also holds many disadvantages. The sheer size of the internet means that searching for credit card debt elimination information will not be easy. There is also the matter of viruses, spyware and other types of problems that one can face on the internet.

There is also no way of telling if any credit card debt elimination information contained in the internet is credible. Since the common theme of the internet is anonymity, there’s actually no way to tell if an expert is truly an expert. If you go to the wrong website, you might end up getting and following some very bad advice.

3) Debt elimination companies – Many companies today offer credit card debt elimination information. They do this in order to inform people of the fact that debt elimination can be accomplished. Other Debt elimination companies offer this type of information in order to attract clients.

By approaching debt elimination companies with your need for credit card debt elimination information, you will have access to the most reliable information available.

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Debt is a problem. Some people may think that debt is a convenience and given people’s tendency to make use of credit cards instead of cash today, this might actually seem quite true. However, you should never be fooled by the offers of convenience given by credit companies. Remember that debt is a problem. More people are beginning to realize this fact and are taking steps to eliminate their debts. If you are one of those people who are taking their first steps towards total debt elimination, you will need help. Here are some debt elimination tips for you:

1) Look for help, not an easy way out – As said before, more people are taking steps to get rid of their debt. Naturally, others see this pattern and try to exploit it. The internet today is full of advertisements and websites which boast of having the ability to rid you of your debt legally without paying any money to your creditors. They offer various documents that try to make use of loopholes in the Federal Reserve System to eliminate your debt.

These sites often quote different politicians and make use of different laws to try and convince you. They often claim that you should take advantage of their offer while you can. However, the government is aware of these sites and keeps on warning people to stay away from these companies. The government maintains the position that what these companies have to offer does not work. This debt elimination tip can save you the agony of losing your money when you are trying to eliminate your liabilities.

If you want help, go to a legitimate debt elimination company. They would be able to help you formulate a good debt elimination plan. This may take you sometime, but you will be sure that it works. By following this debt elimination tip, you will accomplish your goal without paying too much for it.

2) Remember that interest increases over time – People often forget about the interest. They set goals for debt elimination which only accounts for the principal. This debt elimination tip tells you two things:

a) Pay more than just the minimum – If you intend to actually eliminate your debt then you have to make sure that you take the interest into consideration when you pay. The minimum balance required by most credit companies often just takes care of the principal, but it does not help to decrease the interest. By following this debt elimination tip, you would be able to reduce the interest and shave years off the time you have to pay.

b) Put your plan into effect as soon as possible – The longer you delay eliminating your debts, the larger the interest will be. This means that you need to make a debt elimination strategy that will eliminate your liabilities in the shortest time possible. Also, once you have a plan of action in mind, you must hasten to implement it.

3) Save on cash – Even if you have stopped using credit cards, you should still watch your expenses. Follow this debt elimination tip and you can make sure that you never turn to credit for your needs again. Learn to prepare budgets to save as much money as possible. Learn about the wisdom of prioritizing your expenses. This debt elimination tip can help you become a wise shopper. You will be able to get high quality items at low prices.

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Source: http://financeequityloans.com

Category: student loans

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A lot of graduating students have taken loans for their further studies and want to consolidate student loans. You may be one of those responsible individuals who is working towards repayment of your college loans. But here the problem is how to pay the monthly installments, as you have to make monthly payments to many. You could be in a situation wherein you are not able to come up with enough cash to make payment to all lenders. No matter what the reason is for not being to pay up your student loan installment on time consolidation of student loans is a good idea and it will positively reduce your financial tensions.

Another important thing is how much do you know about consolidating student loans, do you have an idea what it actually is? There are many advantages but can be disadvantages also to consolidate student loans. You will some answers to your doubts in this article. Just go ahead and read on…

You will first of all like to know how student consolidation loan works. The answer is very straightforward. Once you have graduated from college you will have to start repaying all your student loans. When you move to consolidate student loan that is in other words you will add up all the loans you have taken from all different places, as one single loan and will have to pay to one lender only and that to at a low interest rate and you may get more time to pay up also. By consolidation of student loans, you will be able to repay your college loan with ease and little tension. Maybe this can also save hundreds of dollars for you in the long run.

There are advantages as well as disadvantages in every situation and it goes without saying that it applies when you consolidate student loan also. There is a grace period and if you consolidate your loans during this time, as you will know grace period is the first 6-month following your graduation, and start repayment you will be able to seize the benefit of a lesser consolidation loan interest rate. But on the flip side you will have to forgo the rest of the grace period and start the payment within the next sixty days.

But to overcome this there is a good strategy of consolidating student loans almost at the end of the grace period to take advantage of both. You can discuss this issue with your lender.

It is also very possible to extend the repayment time when you go for student consolidation loans. The repayment period can be extended up to a period of thirty years! But that primarily depends on your entire education loan debt. As a result your monthly payment sum will noticeably go down. This has its own drawback as the longer you take to repay your loan the more you will have to shell out. It’s entirely your own choice and also the situation you are in.Title: Consolidate Student Loans – How

Source: http://financeequityloans.com

Category: student loans

Article body:

A lot of graduating students have taken loans for their further studies and want to consolidate student loans. You may be one of those responsible individuals who is working towards repayment of your college loans. But here the problem is how to pay the monthly installments, as you have to make monthly payments to many. You could be in a situation wherein you are not able to come up with enough cash to make payment to all lenders. No matter what the reason is for not being to pay up your student loan installment on time consolidation of student loans is a good idea and it will positively reduce your financial tensions.

Another important thing is how much do you know about consolidating student loans, do you have an idea what it actually is? There are many advantages but can be disadvantages also to consolidate student loans. You will some answers to your doubts in this article. Just go ahead and read on…

You will first of all like to know how student consolidation loan works. The answer is very straightforward. Once you have graduated from college you will have to start repaying all your student loans. When you move to consolidate student loan that is in other words you will add up all the loans you have taken from all different places, as one single loan and will have to pay to one lender only and that to at a low interest rate and you may get more time to pay up also. By consolidation of student loans, you will be able to repay your college loan with ease and little tension. Maybe this can also save hundreds of dollars for you in the long run.

There are advantages as well as disadvantages in every situation and it goes without saying that it applies when you consolidate student loan also. There is a grace period and if you consolidate your loans during this time, as you will know grace period is the first 6-month following your graduation, and start repayment you will be able to seize the benefit of a lesser consolidation loan interest rate. But on the flip side you will have to forgo the rest of the grace period and start the payment within the next sixty days.

But to overcome this there is a good strategy of consolidating student loans almost at the end of the grace period to take advantage of both. You can discuss this issue with your lender.

It is also very possible to extend the repayment time when you go for student consolidation loans. The repayment period can be extended up to a period of thirty years! But that primarily depends on your entire education loan debt. As a result your monthly payment sum will noticeably go down. This has its own drawback as the longer you take to repay your loan the more you will have to shell out. It’s entirely your own choice and also the situation you are in.

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Debt elimination companies today are enjoying immense popularity among consumers. This is probably because of the fact that people have realized their need to get rid of their debts. People are beginning to look at credit in a whole new light. In the past, people regarded credit as a convenience they were willing to pay huge amounts of interest for. Today, people see credit as something undesirable.

People who want to eliminate their debts need help. Debt elimination companies see this need and attempt to fill it. This demand for the services of a good debt elimination company has created a sudden boom in the industry. When you look at the internet today, you will find that there are a lot of debt elimination companies which are in business. This means that you are faced with the decision on which debt elimination company to deal with.

When you know enough about debt elimination companies, you might be able to make a rational decision. You would be able to think clearly and choose wisely. So what are the things you should know about debt elimination companies?

1) There are fake ones – As in every type of business, debt elimination companies also have counterfeits. While a real debt elimination company will help you get rid of your liabilities, fake ones will give you nothing but headaches. How do you tell which debt elimination companies are real?

One sure way to tell if a debt elimination company is genuine is through its level of expertise. Real debt elimination companies will offer you the services of qualified and certified counselors to help you fix your finances. Another way to tell is through the payment that the company requires for its services. Often, fake debt elimination companies will ask for outrageous fees for very small services.

Another way to discern a fake debt elimination company is through its method. Debt elimination can be a long process. However, many fake debt elimination companies today offer you documents that they say would eliminate your debts without you having to spend a single cent. This is definitely a scam.

2) They can negotiate – If you think that all a debt elimination company can do is give you advice, you would be mistaken. In fact, debt elimination companies can contact your creditor and come up with a debt elimination plan that will benefit you all. Through a debt elimination company, you will be able to negotiate with your creditors for a smaller interest rate and lower fees.

3) They will study your case – A good debt elimination company does not offer you a “generic” debt elimination strategy. In fact, debt elimination companies today will take the time to sit with you and analyze your finances. Because of this, you will be able to come up with a debt elimination strategy that is tailored to your needs. This means that you will be able to focus all of your efforts to remove your debts.

4) They need your help – If you think that you can dump all of your problems into a debt elimination company, you would be mistaken. In fact, a debt elimination company needs your cooperation. You need to give the debt elimination company all the information it needs to come up with a debt elimination plan for you. You will also need to exert the effort to follow the plan. This way, a debt elimination company can be most helpful to you.

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Source: http://financeequityloans.com

Category: student loans

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Taking a student’s loan is not a difficult task these days. With the large number of loan providers, students can fulfill all their requirements by taking a good student’s loan. As it is said that there is always two sides of a coin, similar is the case with a student’s loan facility. Even though these loans provide benefits and financial support to the students at times of adversity, the large amounts of monthly payments and high rates of interest makes them a not-so-great option. But, the introduction of consolidate student’s loan, the tensions related to one’s debt has considerably reduced.

Various benefits of consolidating student’s loan

Student loan consolidation is an excellent payment program that includes all the federal student’s loans into one single loan. It also allows the students to save their money as consolidating all of the loans helps in lowering down the rate of interest. By availing the facility of a consolidation student’s loan program, it can surely prove to be like a lifesaver for a large number of students and can also contribute in turning around a negative loan dent condition to that of a good fortune.

Consolidating student loans also contributes tremendously in allowing the particular loan borrower to combine the eligible student’s loan with a single lender, one easy monthly payment system and a single monthly bill. The student’s loan that a person may be looking forward to consolidate should be in its repayment or grace period or even in an unauthorized or forbearance period.

The various advantages that are attached with a consolidate student’s loan include the following:

* No applying cost required

* No fees to be paid

* No credit or personal history checks

* No need to have any co-signers

* No prepayment or other penalties

* Fixed and lower rates of interest

* Repayment time period up to a maximum of 30 years

* Single monthly payment for various federal students loan

Another added benefit that the students loan consolidation user enjoy includes no need to pay any extra charges for paying more amount than the minimum limit for each month or even paying off the loan amount at an early date. The most striking quality about consolidate student loans is that the students can conveniently cut their monthly loan payments as much as by 50 percent after consolidating their students loan. Also, a federal student’s loan consolidation can help in extending the repayment time period on the student’s loan by up to a maximum of 20 years. In addition, it can also help in lowering down the amount that one needs to pay every month.

Avail the facility of student loans consolidation and enjoy its benefits

The best part about student loan consolidation is that the interested students can apply for such consolidation programs in a few minutes either by contacting the respective service provider or by simply applying over the Internet. So, what are you waiting for? If you have some high interest student’s loans, you can get rid of paying those increased rates of interest and writing numerous checks every single month. College loan consolidation has proved to be the savior for students who are in pressing demand of clearing their previous debts.

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According to recent studies, the average American household has nearly 20 debit and credit cards, with an average of $500 charge on each one; and due to the 2005 Bankruptcy Abuse and Consumer Protection Act it’s making it harder than ever for consumers to have their debts wiped out by the courts. What this means is that more and more consumers are feeling overwhelmed and helpless and are seeking professional assistance to reduce debt and avoid bankruptcy.

Choosing the right debt settlement company for you is an important first step to getting out of debt. Like all industries, the debt settlement industry has fraudulent businesses. While many debt companies may appear to be similar in goals and structure, it is essential to realize that not all are the same and that some are not to fit your needs. There are debt agencies that will charge high fees and promise to lower your debt, without actually producing any results. Learning basic information about a debt company can help you avoid falling victim to a scam. The most import thing is to ask lots of questions.

KEY FACTORS TO DETERMINE IF A DEBT SETTLEMENT COMPANY IS LEGITIMATE:

1.The company should be prepared to meet your needs in an honest and efficient manner.

2.The company should offer free consultation

3.The company should have available a debt counselor or specialist, who is qualified to assess your entire financial situation and recommend the most suitable course of action for your circumstances.

4.The debt counselor or specialist should work with you hand-in-hand in developing a program that will lower your monthly burden to a single, more manageable commitment leaving you debt-free in the shortest time possible.

5.A legitimate company will only charge you according to the original balance, not the balance after all of the fees and charges.

6.Please be very cautious if a company claims that as a part of their services, they guarantee to stop all creditor phone calls or guarantee that your credit will not be altered.

7.The company should demonstrate the required business practices and standards required by TASC. TASC- Trade Association of Settlement Companies. TASC goals are to promote good practice in the debt settlement industry and protect the interests of consumers. TASC encourages debt settlement companies to provide services of the highest standards to ensure the public and the credit industry’s confidence.

8.In order to achieve successful negotiations, the company should have skilled debt negotiators and settlement professionals, who are current with the laws pertaining to debt, credit and collection and represent their debtor client’s best interest during debt negotiations with creditors and collectors.

However, you should shop around to find a debt settlement company that is honest with proven results, and one that is the best fit for you. Make sure that the company offers the services that you need at terms that are acceptable to you.