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  • Car Loans 6:09 am on February 20, 2015 Permalink | Reply
    Tags: , , Debt Consolidation, debt plan,   

    The Basics of Debt Consolidation 

    If you are burdened by debt and there seems to be no end in sight to your debt woes, what you need is a bit of breathing space. Debt consolidation might be a good idea in such a situation, and chances are, some debt consolidation scheme or the other has been recommended to you. If you still need to make up your mind about whether to proceed with taking out a debt consolidation loan, this article is for you – it will discuss what debt consolidation is and how it works, why you would want to involve in debt consolidation, the pros and cons of the process and more.

    Debt consolidation, as the name suggests, is about bringing together a number of debts which come at a high rate of interest, and sort of fusing them into one debt that is more easy to pay off and has a lower rate of interest. To illustrate, suppose you have accumulated debt on two credit cards, at the rate of 15% and 20% p.a., and also have to pay of another loan which comes at 16% p.a. If you find that your credit is not good any more, and that it is increasingly difficult to pay these loans, you can sign up for a debt consolidation programme, which will allow you to pay off these loans by giving you a new loan for the amount you need, with an interest of, say, 12% per year.

    The pros of debt consolidation are as follows:

    • Payments are easier to keep track of. This is because instead of having a number of loans to pay off, you only have one loan to pay off each month. You will know the importance of this if you have dealt with having to make multiple payments each month.

    • The rate of interest that is charged by debt consolidation companies is lesser than that on other debts, such as credit card debts, bills etc.

    • A consolidated debt plan can be either for a secured or unsecured amount. This means that you do not necessarily have to mortgage property for getting the loan, and so, you do not have to worry about foreclosure and everything else that ensues if you fail to pay a secured loan.

    • Companies that offer consolidated debt plans will offer you some counseling and give you advice on your debt situation – this is likely to do you good in the long run, as professional advice can be a boon when you are facing a rapidly worsening debt situation.

    Debt Consolidation

    There are, however, not so attractive sides to debt consolidation. The cons of the same can be discussed here. If you are not careful enough in reviewing the debt consolidation scheme that is offered to you, you may end up paying more in the long run than you would have on multiple loans. Further, you may see this as an easy way out of debt, and will keep to your old spending habits which were what got you into debt in the first more news at

  • Car Loans 6:03 am on February 18, 2015 Permalink | Reply
    Tags: consolidate debt, Mortgage Home Loan, mortgage payments, Refinancing   

    Mortgage Home Loan Debt Consolidation through Refinancing 

    Happens often, happens to all kinds of people: debt grows to levels where payments are not comfortable any more. There are several solutions, the one that interests me here is the mortgage home loan more information from my latest blog post.

    A debt consolidation loan is a loan taken to pay off other debts. That’s true even when the loan is a mortgage loan, when you refinance and use equity to pay off other loans.

    In the years immediately following the 2008 mortgage meltdown, it might not seem like a good idea to talk about refinancing mortgage loans to consolidate debt. But it is. If you are among those people who have equity in your home, which is a good part of the home-owning population (75% of homeowners in the Chicago area, for instance, according to a news story I heard on FM 92.7 today, 03-02-2012, are not upside down… Well, they put it the other way, 25% owe more than their homes are worth.)

    As you make mortgage payments, the amount of principal you owe decreases. At some point, you owe less than the home is worth. (The point might be many years into the mortgage, or not.) You make improvements to your home, the value of your home might be higher than what you owe on it.go to for more information.

    In any case, if a home is worth more than what you owe on it, you have equity. The equity can be extracted, used any way you want. The smart way to use it is to consolidate debt.

    When you consolidate debt, assuming you completely eliminate obligations, you reduce the amount of payments you’re required to make to service the debts two ways (usually):

    1. you get high interest rate loans out of your life, sweep them into the mortgage loan (which carries lower interest rate)

    2. you reduce the number of minimum payments you make and that reduces the total amount you must pay

    You can extract equity from your home two ways:

    1. by refinancing your home loan
    2. by taking out a second mortgage.

    You would take out a second mortgage if the 1st mortgage loan has such a sweet interest rate compared to what’s available when you’re looking to refinance that it makes no sense to refinance.

    You can, of course, take out a personal loan to consolidate debt. Often people are presented with credit cards with varying interest rates. It makes sense to transfer debt from a credit card with an interest rate of 17%, say, to one that has only 12%.
    Of course, you have to pay attention to fees.

    Sometimes transfer fees are so high as to ruin the beauty of debt consolidation yet people do not notice. In essence, they end up owing more (though the monthly payments might be lower).
    But, done correctly, this is another way to reduce the amount of monthly payments and get out of debt sooner.

    But I’m really talking about taking out a personal loan (bank, friend, relative) and use that to pay off other unsecured debt (because the total monthly payment would be lower).

    Mortgage Home Loan

    The other option you have, if you want to use debt consolidation services.

    Contrary to what some people think, these kind of service companies do not lend money, necessarily. What they do, usually, is work with your creditors to lower the amount you have to pay. They might advise you to refinance or take out a second mortgage too

  • Car Loans 5:48 am on February 16, 2015 Permalink | Reply
    Tags: bills payment, Consumer Proposal, , Debt Consolidation Services   

    Debt Consolidation Services Help You to Understand Available Options 

    Are You Struggling with Your Debts?

    Many of us have trouble paying our bills on a monthly basis. High interest credit cards, income tax debt and other living costs can quickly get out of control and leave you swimming in a sea of debt.

    When you are struggling to pay your bills and you can’t see an end to the ruthless debt cycle, it is relieving to know that there are many different debt solution options to pursue. You don’t have to fight back against debt alone; there are professional debt consolidation services available with experience helping people just like you become debt free.

    A credit counselor or a trustee in bankruptcy will not only describe the debt solutions that are possible; they are also pivotal for the successful implementation of these solutions. In many circumstances, debt may be settled for an amount less than the total debt owed.

    Is Bankruptcy Right for You?

    Many people fear bankruptcy because of the seizure of assets, including such things as a house or car.

    Enlisting the help of a licensed trustee can make the process of declaring for bankruptcy a much less intimidating experience. A trustee will explain to you what assets cannot be seized and it is very possible you will not lose your home or car. The trustee is responsible for selling the available assets and dividing the money up among creditors. In addition, a monthly payment is also provided to the trustee based upon a person’s income and expenses.

    Bankruptcy is meant as a last resort and it is not the best choice for everyone. New bankruptcy laws in Canada call for a monthly review of the debtor’s income and expenses. If the debtor has what is deemed as “surplus income,” a monthly payment must be made until the debtor is discharged from bankruptcy.

    After the monthly payments are completed, the debtor is absolved from the debts but the bankruptcy will affect the credit rating for 7-14 years.

    What is a Consumer Proposal?

    A consumer proposal is the most popular debt settlement alternative to bankruptcy. Many debtors prefer to file a consumer proposal because it allows them to retain all of their assets. This type of debt repayment solution is ideal for people that can afford to make a monthly payments that cover a portion of their total debt.visit the original source to get more information.

    A trustee is a vital part of the consumer proposal process, with the ability to negotiate with creditors on behalf of the debtor. A trustee will work with the creditors to find the length of the agreement as well as the amount of the monthly payment. This amount remains constant regardless of changes to income over the course of the agreement. Upon completion, the debtor has a more favorable credit rating than bankruptcy.

    Debt Consolidation Services

    In the case of income tax debt, the Canada Revenue Agency (CRA) will not negotiate directly with consumers. A trustee can work with the CRA to include income tax debt as part of a consumer more information at

    If you are struggling to provide for yourself or your family, schedule a face-to-face meeting with a debt management professional today and take the most important first step to getting your debt under control. Debt is much less scary when you have allies on your side and you know what options are available to fight back.

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