|
|
|
Debt Consolidation 101
Debt consolidation occurs where one takes out a loan in order to pay off two or more existing debts. Consolidating existing unstructured debt into one personal loan may save on your monthly outgoings while, at the same time, offering a repayment...
Debt Consolidation Loan
Debt consolidation loans can give you a fresh start, allowing you to consolidate all of your loans into one - giving you one easy to manage payment, and in most cases, at a lower rate of interest.
If your objective is to reduce...
Debt Management in the UK
Debt management, as defined in the UK, is a course of action
where a reduction in repayment amount and/ or interest charges
is negotiated with unsecured creditors, when you are no longer
able to meet your repayment requirements.
For some...
Debt Management Plans - Things You Must Do To Avoid Pitfalls
Most people are involved in some type of financial transaction or decision every day. Sometimes they can get way behind in their debts and financial obligations with no clear way to pay them off. Some resort to debt management plans, which can help...
Reduce Debt - How To Prevent Bankruptcy By Reducing And Consolidating Your Debt
You can prevent bankruptcy by consolidating your debt with the
help of a loan or debt consolidation agency to reduce your
monthly payments and quickly pay off your liability. But before
signing final paperwork, you should develop a financial plan...
|
|
| |
|
|
|
|
|
|
Thinking Beyond Debt Consolidation Loans
Planning to devise a permanent solution to the problems of debt? The chances of success, to be exact, are lesser, given the features which characterize the debts. Debts are the result of the disequilibrium in the relationship between income and expenditure. Whatever be the income of a person, they seem inadequate to suffice the unlimited expenses. Thus debts are bound to emerge again and again.
This must not however discourage us from finding a solution to the debts. Debts can make lives difficult. You will have creditors making regular phone calls and then dropping by at your house demanding the amount lent out. With the creditors making a scene, the personal image and the credit is badly marred. The mind is heavily stressed and some people may even contemplate suicide.
But how many of us do actually take the step to end ones life? Only a handful of us; because we value our lives and because we know that ending ones life is not going to solve the problem of debts. The creditors do not intend to leave the amount. Once the principal borrower deceases, they catch the co-borrowers or the dependants of the principal borrower.
A simpler method of getting rid of debts is debt consolidation. Debt consolidation can provide relief from the debts without burdening the borrowers. Debt consolidation as the name goes consolidates or brings the various debts on the borrowers account together. The debts could have been dealt individually, but this would have been a tedious process. The consolidation of debts helps to generate the feeling that they are not as invincible as they appear.
Once the debts are consolidated or brought together, they are ready to be settled. The borrower will have to choose from a variety of ways of debt consolidation. In the following section we shall discuss the methods of debt consolidation in detail.
Debt consolidation through credit cards:
Credit cards can be an excellent method of debt consolidation. There is no requirement of the collateral. This saves the users from the fear of losing assets in case they are not able to repay. However credit cards are very costly. The interest rate charged by the credit card companies is very high. The manner in which the user negotiates the interest rate will decide the actual interest charged on the balance transfers.
Debt consolidation through Debt consolidation loans:
Borrowers who want to save on the interest rate would do best by repaying debts through a debt consolidation loan. The interest rate is minimal. The debt consolidation loans are traditionally used and preferred most because of the flexibility that they offer. The burden on the borrower is reduced by spreading the loan amount on the various months making up the term of repayment. People having resources can pay off the loan amount without waiting for the term of repayment to end, provided the lender does not forbid a premature repayment. The borrowers can decide on the
manner in which the interest is to be charged.
Debt consolidation through home equity loans:
Home equity loans are secured loans. These are generally issued against the home as collateral. The minimal risk calls for a lesser interest rate. The repayment of the home equity loan is similar to the debt consolidation loans. However, the borrowers must be regular in the monthly repayments to the home equity loan. Otherwise the home may be repossessed to make the default good. The home equity loan can be used for purposes other than debt consolidation, if the borrower so desires.
Debt consolidation through credit counseling:
Credit counseling agencies help in the settlement of loans by payment plans. The borrower will be required to make monthly repayments to the payment plan suggested. Credit counseling can agencies provide tips on how the debts can be prevented from erupting again.
Debt consolidation through cash-out refinance:
Cash-out refinance helps to refinance mortgages and other debts. These mortgages and debts are refinanced either to get an improved interest rate or get benefited on the increased equity in ones home.
Debt consolidation through debt settlement:
When consolidating debts through debt settlement, the borrowers are to make the repayments to the settlement company. As the balance on the debt falls, the settlement company repays the balance of the debts. The main advantage of debt settlement is that the borrowers are freed of dealings with the creditors. Creditors contact the settlement company for any queries related to debts.
Debt consolidation through rapid debt repayment:
The method of debt repayment repays the debts according to the priority. A monthly repayment is to be made towards the payment of debts. The high interest debts are to be repaid first because more is the delay in the repayment, more will the cost be.
Since there are massive differences between people and their conditions, no one method can be imposed on all. Each method has its own pros and cons. while some may be benefited by a debt consolidation loan, others are not. A proper study of the individual condition either by oneself or by people having a proper knowledge of the field can help find the best method to fight the monster named debt.
About the Author: James Taylor holds a Master’s degree in Commerce from JNU he is working as financial consultant for http://www.chanceforloans.co.uk To find a personal loan,bad credit loans that best suits your needs visit http://www.chanceforloans.co.uk
Source: www.isnare.com
|
|
|
|
|
| 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 |
|
| Welcome to Debt Relief International |
| Welcome to the web site of Debt Relief International. |
| www.dri.org.uk |
|
| Debt relief steps, your free guide to debt help. |
| Articles on debt relief, and credit management and repair. |
| www.debtsteps.com |
|
| 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 |
|
| 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 |
|
| 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 |
|
| 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 |
|
| Debt Relief - InCharge Debt Solutions |
| There are many ways to get out of debt, for good, and it may be easier than you think. The first step is knowing your options, the second step is taking ... |
| www.incharge.org |
|
| 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 |
|
| 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 |
|
| 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 |
|
| 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 |
|
| 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 |
|
| 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 |
|
| 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 |
|
| 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 |
|
| 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 |
|
| 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 |
|
| 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 |
|
| 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 |
|
|