Category Archives: Cash

Credit Card Consolidation – Understand It Better

A lot of people think that having a lot of credit cards allows you more financial stability and freedom. This is actually not the case for most people. Having a lot of credit cards causes more problems than advantages. If you have a lot of credit cards, you’d have to keep up with a lot of things. This includes the due of each of your cards’ bills, the interest rates you incur from each card, the balance you have on each card, etc. If you delay the payments for your cards, you would incur a lot of interest and would end up being in even more debt. In worst cases, this may even cause the need for you to file a bankruptcy.

Credit Card Consolidation and Credit Card Consolidation Agencies

Credit card consolidation would be able to help you out in this regard so you can avoid things like bankruptcy, defaults, charge offs, etc. But the thing is, an individual would not be able to take out a credit card consolidation deal on his own. It is for this purpose that credit card consolidation agencies exist. They are able to help out people who are in tons of debt to pay off their balances.

Single Debt

The purpose of a credit card consolidation is to pay off all your other credit cards so you would have to pay on only a single credit account. This allows you to avoid confusion when it comes to interest rates, due dates, balances, etc.

Stop Harassment

When you don’t pay on your credit cards, the bank would forward your account to a collection agency or department. These collectors are assigned to call you to ask for payment. They problem is, for the account holder or customer, these calls become annoying, distracting and stressful. If you have credit card consolidation, all the calls from collection agencies would then go through to your consolidation agency. This means you won’t have to worry about harassing calls anymore.

Negotiations Made For You

A credit card consolidation agency would have trained and experienced professionals for the purpose of negotiating your debts with other credit card companies. In this way, you will be represented by a professional when your settlement is being negotiated, giving you better chance at a reasonable deal.

Burden Reduction

Having a single debt would be easier to pay and also easier to live with. When you get a credit card consolidation, you would be able to forget about numerous bills arriving and numerous payments that you would need to make because now, you will only need to pay one. Also, your interest rates may be reduced and your fees for late payments may be waived. This would be able to considerable lessen the total cost of your debts.

Avoid Bankruptcy

A credit card consolidation would be easier to pay than multiple, separate credit cards. Since it is easier to pay, it is less likely for you to be defaulted or to have to file a bankruptcy because of your debt.

Mortgage loans by credit score

Whether you like it or not your credit score will work in your favor you when you begin your venture of getting a mortgage loan. Each credit score is classified into different tiers, effectively classifying you as a high or low risk borrower, thus opening or limiting your possibilities for affordable rates of interest. The requirements are quite strict when it comes to home loans as the current economic climate does not allow for more favorable treatment unless you present yourself as an asset to a bank and not a liability.

Each home loan is a bank’s risk therefore your task is to convince the lender you can hold on to your word even in the midst of chaos. To leverage your stance and tip the scales in your favor make sure to see to everything within your means to ensure a smooth processing of the application and successful closing of the deal.

Why Your Credit Score Matters So Much

It is a gauge that allows the lender to assess how much of a risk you are and your past history including any deliquencies on even a single payment. There are various tiers ranging from the rock bottom that is where only subprime loans can be considered as the only option at excessively high rates. The higher the score the better your prospects for receiving a reasonably priced offer. The score is afffected by your past behavior towards any obligations and payments there have been there to settle. Any outstanding payment sends your score a few points down. Then again, even with all those existing payments to be made you do not have to look bad in the lender’s eyes as most people thrive on credit, understandably. The winning factor is to present yourself as a responsible customer. As with all the people that will change much once you are hit by some emergency and your source of income dries up substantially. After exhausting all the options you are only left with the only one which is to negotiate the loan with your lender. To avoid this possible scenario or at least limit the risk of this happening, take steps to ensure at the very beginning that you cover all the bases, from presenting a repaired or reasonably high credit score and the right choice of a loan.

Mortgage Loans by Credit Score and Other Considerations

As mentioned your credit score will determine the mortgage loan and its rates which is why many people search for alternatives, including even manufactured or mobile homes, which, however, are not accompanied by properly tailored loans at suitable rates. Another option is to look into FHA backed up loans for those with less than desirable credit score with lower rates and a low down payment at that. But then again the final choice is yours and the knowledge of the possible options as well as acting on it depend ultimately on you.

Are Debt Consolidation Loans Easy To Get

Consolidation is one of the best and easiest ways you can get rid of all your debts in the shortest time possible. With this method, you will combine all your outstanding liabilities and loans, along with their interest of course into one single loan that comes with a relatively lower interest rate. So rather than paying several different lenders every now and then, you will only have to pay one lending company. Not only are debt consolidation loans easy to get, but they can also make debt repayment much easier to deal with.

Steps to Debt Consolidation

Know exactly how much you owe.

The very first thing you should do is open those bills and credit statements that you have tried to avoid for months. It is important to differentiate good debt from bad debt. Good debt, for instance, is mortgage debt that takes up less than 25 percent of your gross income. Do not forget to include the money you owe to your friends or family and other creditors. Then find out which of your debts has the biggest interest and know how much interest you actually pay on debts.

Set up your budget.

Come up with a list of all your expenses in a month. This should include how much you should spend on daily living, leisure, emergency fund, and debt repayment. As you calculate your budget, it may be necessary to cut down costs on some aspects to make it easier for you to wipe out all your debt fast.

Apply for a debt consolidation loan.

If you haven’t applied for this loan before, there is nothing to worry about. Many people, in fact, find debt consolidation loans easy to get. First, choose a bank where you will also pick and make an appointment with a financial advisor. If you want to get the best rates, you may as well rely on the service from the same bank where you keep your savings or where you took out a mortgage loan. In terms of the documents you may need for consolidation, you should prepare proof of employment, at least two months’ statements from the lenders or credit unions you owe, as well as the letters from your creditors or collection agencies.

Start your debt repayment.

In many cases, your debt consolidation lender will be the one to decide which creditor or lender will be paid first. Those with the highest interest rates are the ones that often get paid first. But if you want the smaller ones to be settled first, you may do so.

Stay focused and stick to the plan.

While you may find debt consolidation loans easy to obtain, you should not fall into thinking that getting one ends all your problems. This whole process will only be successful if you keep yourself determined and disciplined enough to pay off all your debt. So while your consolidation company is still in the process of paying your numerous creditors one by one, make sure you do not overspend especially on your credit card. Use a debt consolidation loan just a tool for you to live your life without debt.