Tag Archives: debt consolidation
Credit Card Debt Management Consolidations
Credit card debt consolidation can be of two types consolidating all your debts into one debt, or taking a fresh loan to pay off all the existing debts. Technically the latter type is called debt consolidation loan but the term debt consolidation is often used to mean both methods. One should confirm before committing to either alternative and choose whatever method is more suitable to his/her situation.
Mere debt consolidation is not a loan. It is the process wherein you combine all your credit card debts into a single debt with the help of a professional debt management/repayment program of a financial institution. The representative of the program negotiates on your behalf with the credit card companies regarding your outstanding debts. The duty of the representative is to secure a lower rate of interest and reduction in penalties for late payments.
Instead of paying several separate bills every month you make only one consolidated monthly payment of a fixed amount to the debt manager as if there is only one loan. It is his duty to make the payments to the individual creditors and keep your accounts up to date. The programs will require you to stop using your cards till complete repayment of debts. With the systematic guidance of a professional debt management program you can pay off all your debts in a much shorter time than you expect. The service involves fees for securing all these benefits.
The second type of debt consolidation entails taking a fresh loan to pay off the existing loans. It is the oft resorted measure to pay off the credit card debts. A debt consolidation loan facilitates a fixed rate of interest, lower monthly installments and the convenience of servicing a single loan – instead of coordinating between many debts with different rates of interest. Credit card consolidation service providers or help centers extend the necessary assistance to get the loan.
One should be careful before going for a consolidation loan because more often than not they charge a high rate of interest and generally they are secured loans – unlike credit card debts, which are unsecured debts. A default may result in losing the property given as collateral. Choose only a loan with a competitive rate of interest.
Debt consolidation of either type does not revamp your credit rating overnight. But it can help improve your credit history and ensure a debt free future with careful planning. Also, it protects you from harassment of creditors and the humiliation of filing for bankruptcy.
Bad Credit Debt Consolidation Loans
Labelled with Bad credit and you need financial help one more timedont worry, weve got something to help you! Bad Credit Debt Consolidation Loans are specially designed for you if you are someone with bad credit history looking for financial assistance. These loans are ideal for you, however, your being a defaulter or negative credit holder, does affect your loan approval process in several ways. Bad Credit Debt Consolidation Loans try to simplify the process for you.
Bad credit arises when you default on your payments. It could be because of a bankruptcy, non payment of loan instalment, C.C.J., etc. Often, these defaults are due to genuine difficulties. However, non-payment is always looked at as a breach in confidence. This obviously goes down negatively and brings to you hesitant lenders and their stringent and inflexible terms and conditions. Bad Credit Debt Consolidation Loan lenders, who are here to simplify the process for you, try to understand the situation and make repayment possible.
Bad Credit Debt Consolidation Loans are loans that are customisable depending on your outstanding debt, current financial standing and credibility. With this option, borrowers are made to consolidate their total debtmerging all outstanding payments into one single unpaid amount that is then cleared with a Bad Credit Debt Consolidation Loan. This instantly takes cares of the many lenders you were repaying and allows you the possibility of now managing your finances once again. Instead of repaying several lenders, keeping track of repayment dates and repayment amounts, all you now have to do is repay a single loanthe Bad Credit Debt Consolidation Loan.
These customisable loans allow you to sit down with your lender and chalk out a functional and efficient repayment plan. This plan takes into account your financial past and therefore eases out the repayment instalments for you. Smaller the instalment amount, longer is the repayment term and therefore more is the interest you pay in the long run. However, at the same time, this also means you are not eating into your savings and this gives you scope to spend on other things.
Most debt consolidation agencies include debt counselling for individuals buried in debt. These sessions help individuals to keep a track of their expense and better manage their savings. They also plan budgets that you should stick to and often advice cancellation of additional credit cards. All these trivial changes go a long way in making the necessary difference and gradually pull you out of you crisis.
If you are labelled with bad credit and have a lot of payments that you make on a monthly or quarterly basis, Bad Credit Debt Consolidation Loans are a safe way to go. Search the market well and find the right lender before you make any decision.