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4 Principles to Follow to Avoid Credit Card Debt During the Holiday Seasons
The holiday season has arrived. It is time to celebrate, make
merry, and have fun. Travel plans have been made, lists of gifts
for family and friends have been drawn up, and arrangements for
parties are in full gear. It is indeed the season to be...
5 tips about Debt consolidation
Debt consolidation is a way to financial freedom, having a
positive impact on the credit rating. Credit rating, quality of
living, and the impact on the family, are affected when
creditors harass for payment and the payment made causes...
Is It Safe To Consolidate Debt Online?
Some people are motivated to consolidate debt online because they know they can save a lot of money by taking advantage of low interest rates. Others are panicking to find a quick and easy solution to help them deal with a mountain of debt.
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The Human Side: Debt Stress
In all the technical discussion you hear about credit card debt, the best ways to manage it and pay it off and all the rest, one thing goes largely ignored. Credit card debt is extremely stressful, and can have a very negative effect on your life,...
The New Bankruptcy Law -- How Will It Affect Debt Negotiation?
In April 2005, Congress made sweeping changes in U.S. bankruptcy law that will go into effect on October 17, 2005. It's called the "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005," and it means big trouble for Americans struggling...
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Eliminate Your Credit Card Debt, But How?
Can a debt consolidation loan eliminate your credit card debt? A consolidation loan might (or might not) be the key. There are several things you must consider when making the choice to consolidate debt using a debt consolidation loan.
First, is a debt consolidation loan your best choice to eliminate or substantially reduce your debt? There are other options available to you, including credit counseling and bankruptcy. Obviously bankruptcy is a last resort. You must examine several factors when making your decision on which debt reduction / elimination strategy to use. You need to get information on debt consolidation to make the correct decision.
•How much outstanding debt do you have?
•What is the interest rate of your current debt? Many credit cards have interest rates of 14% - 22%, depending upon your credit rating and payment history. Obviously, the higher your current average interest rate, the better off you will be if you consolidate your debt with a consolidation loan at a much lower rate.
•How much of your outstanding debt is unsecured? Unsecured debt has no collateral against it. Credit cards, student loans, store charge cards and medical bills are examples of unsecured debt. If you have over $7,500 in unsecured debt there a multitude of lenders that you can look at. Student loans fall into a different classification from other types of unsecured debt. In the United States, most are backed by the federal government. Usually you will have to use a secured debt consolidation loan to pay off your unsecured loans. You may also be able to refinance your secured debts, but you usually cannot consolidate secured debts.
•Do you own a home or other substantial assets to use as collateral for a debt consolidation loan? If you own a home or other real estate, how much equity do you have in it?
•What type of interest rate is available to you for a consolidation loan? The interest rate you receive on your loan is
affected by a multitude of factors including the prime rate. For student loans, the borrower interest rate on consolidation loans is currently calculated as the weighted average of the interest rates in effect on the loans being consolidated, rounded up to the nearest one-eighth of 1 percent. They are capped at 8.25 percent.
•How is your credit rating? Someone with a very good credit score has options open to them that those with lesser credit ratings do not.
Keep in mind that if you have more than 20% equity in your home, you are usually not required to carry private mortgage insurance (PMI). If you have reached the 20% equity stage through either paying down the principal, asset appreciation, or both, you can probably drop PMI and lower your payment. On the flip side, if you are not paying PMI and you take out a consolidation or other home equity loan, you may put yourself back under the 20% equity threshold. This would require you to get a new PMI policy. Factor this in when making your cost / benefit analysis.
If you are constantly slipping backward and your cash flow is poor, you can improve things with a debt consolidation loan. Be careful and weigh your options carefully. Take into account the tax benefits you may receive by using a home equity loan to consolidate your debt. This benefit will vary depending upon your tax rate. You can get many free quotes for debt consolidation loans. There are several places that have multiple lenders compete for your business. Talk to several lenders to see which will give you the most favorable terms. You can substantially lower your monthly payment and significantly improve your cash flow situation with a debt consolidation loan. Just make sure this is the right choice for your needs.
About the Author
Steve writes about a multitude of topics from home theater and automation to business and finance.
See his website, The Debt and Loan Consolidation Guide
for more information.
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| Advertisements Promising Debt Relief May Be Offering Bankruptcy |
| Cautions consumers about ads in newspaper, magazine and telephone directories that offer quick fixes for debt problems. |
| www.ftc.gov |
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| Welcome to Debt Relief International |
| Welcome to the web site of Debt Relief International. |
| www.dri.org.uk |
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| Debt relief steps, your free guide to debt help. |
| Articles on debt relief, and credit management and repair. |
| www.debtsteps.com |
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| Factsheet - Debt Relief Under the Heavily Indebted Poor Countries ... |
| The HIPC Initiative is a comprehensive approach to debt reduction for heavily indebted poor countries pursuing IMF- and World Bank-supported adjustment and ... |
| www.imf.org |
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| Special report: debt relief | Special reports | Guardian Unlimited |
| February 6: A year ago the Guardian set out to track the west's promises of action for Africa on aid, trade, health and debt relief. As G8 finance ministers ... |
| www.guardian.co.uk |
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| Debt Relief Options - Findlaw for the Public - |
| Welcome to Debt Relief Options. This section contains information about the ... To begin, select one of the Debt Relief Options topics from the list below ... |
| bankruptcy.findlaw.com |
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| William Brewer |
| The Brewer Law Firm. William E. Brewer, Jr., Attorney at Law Board Certified Consumer Bankruptcy Specialist. 619 N. Person Street Raleigh, NC 27604 ... |
| www.debtrelief.com |
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| Debt Relief - InCharge Debt Solutions |
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| www.incharge.org |
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| Economic Policy and Debt |
| May 2006, IMF And World Bank Support Cameroon’s Completion Point Under The Enhanced HIPC Initiative And The IMF Immediately Grants 100 Percent Debt Relief ... |
| www.worldbank.org |
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| Economic Policy and Debt - The Enhanced HIPC Initiative |
| The Initiative’s debt-burden thresholds were adjusted downward, which enabled a broader group of countries to qualify for larger volumes of debt relief. ... |
| www.worldbank.org |
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| Debt relief - Wikipedia, the free encyclopedia |
| Debt relief is the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations, or nations. ... |
| en.wikipedia.org |
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| Debt Analyzer, Debt Reduction Software, Home Page |
| Debt Elimination at its best! Potential savings of hundreds or thousands of dollars! Build debt reduction, timed elimination or consolidation schedules. |
| www.debtanalyzer.com |
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| Superior Debt Relief |
| We help you get rid of credit card debt much faster than you may believe possible with credit card debt settlement and negotiation tactics, providing debt ... |
| www.superiordebtrelief.com |
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| Debt Relief - Social and Economic Policy - Global Policy Forum |
| Aid Inflows, Debt Relief Yet to Translate into Reduced Poverty (March 20, 2006) ... Fearing that the IMF could tie debt relief to economic benchmarks, ... |
| www.globalpolicy.org |
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| Debt Relief - Global Policy Forum - Social and Economic Policy |
| Debt Relief - Global Policy Forum - Social and Economic Policy. The Debt Relief Page Has Been Moved to: ... |
| www.globalpolicy.org |
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| BBC NEWS | Business | Q&A: African debt relief |
| BBC News looks at the progress of international debt reduction efforts, and the sticking points which continue to hamper the process. |
| news.bbc.co.uk |
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| Debt Relief Australia - Start Reducing Debt Today! |
| Debt Relief offers Australians in debt assistance with finding the most appropriate debt relief solution. |
| www.debtrelief.com.au |
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| Debt Consolidation Australia, Debt Relief & Bankruptcy Information |
| Specialising in debt agreements, mortgage refinancing and bankruptcy. Company profile, calculators, solutions, media releases, testimonials and existing ... |
| www.foxsymes.com.au |
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| Oxfam - Debt and Aid - Debt Relief for Nicaragua: breaking out of ... |
| Oxfam policy paper on relationship between international debt servicing and poverty. Linked to table of contents and also zipped for download. |
| www.oxfam.org.uk |
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| What debt relief means for Africa | csmonitor.com |
| This weekend's $40 billion debt cancellation deal could spark major improvements in the lives of the world's poorest people. |
| www.csmonitor.com |
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