Finance Point

The availability of credit and loans today has helped to fast forward today’s population into a vortex of debt and chaos. You would think that the easy availability of credit cards and loans would be helpful for people to live better, to be happier, to lead a more balanced life.

However, what actually happens is that they get addicted to buying useless things and wrap themselves into a limitless indebtedness, which can paralyze them. Often such predicament leads to declaration of bankruptcy and waste of precious year of one’s life in struggling to repair bad credit ratings.

What you can do when you find yourself hopelessly entrenched in debt? Consolidate all your debts or bills into one, a new loan, a bill consolidation loan. Take heed of the following advice which is basically about bill consolidation, and maybe you will be free of debt very soon - hopefully after having learnt a very precious lesson from your experience:

1. Get professional help - there are many non-profit organizations out there, which specialize in debt management and would be glad to offer you help and advice on how to manage yours. Get help! Do not be shy to admit you have a debt problem - because unless you reach out, nobody can come to your rescue.

2. Consider the possibility of taking a personal loan - here personal loan means not the one you apply from a bank, but the one you would ask from a friend or relative who trusts you enough to lend you money when your chips are down. Ensure though you put the agreement in writing lest you would be tempted to "forget" about it and hence destroy a good relationship.

3. Consider a home equity loan - what about a home equity loan with which you could clear off all your debts in one sweep and the concentrate in repaying only one, i.e. the home equity loan. The catch here is that the financial organization from where you would take your loan would require your home as collateral - which is pretty risky if you do not have a regular and sufficient source of income. Ensure that you bargain for the lowest possible rates, in case you do choose to take up this option to bail you out from your debts.

4. Cash on your life insurance policies - you might like to consider a loan against your life insurance policy depending upon its value at maturity. This is an excellent option because the interest rates charged here are often the lowest when compared to other sources.

5. Consider credit cards unions - these are special organizations, which would lend you money to repay your credit card debts, at a much lowers rate than the credit card is charging you. Check out with the organization you are working in; most large organizations have a credit card union on their premises.

6. Borrow against your retirement fund - while this will give you a very good rate of interest, it would be good to keep this option last because it is not advisable to meddle with your savings for the future.

QUESTION: I do not seem to be making much progress toward paying down my credit card debt. Some months I am able to send in only the minimum payment amount. Would it be a good idea to get a home equity loan to pay off my personal credit card balances?

ANSWER: Interest will continue to be charged on your unpaid credit card balances. Therefore, the longer you carry unpaid balances, the more interest you will owe. If you make only the minimum payments, it could take you years to pay off your current credit card debt. If you keep on charging additional amounts that you can not pay in full, you may never pay it all off. Even after forking over thousands of dollars in interest, you could still find yourself saddled with a tremendous amount of consumer debt years from now.

Eliminating credit card debt can be a big step toward improving your financial well-being. One of the most effective ways to manage your personal debt is to establish and follow a budget. A realistic budget can help you reduce your spending. Budgeting could also make more of your existing funds available to pay down your credit card debt.

In addition to working within a budget, you may want to consider using the proceeds from a home equity loan to pay off your consumer debt. However, before you take out a home equity loan, make sure you have a reliable plan to pay it back. If you were to default on the loan, you could lose your home. Read More

Credit card debt consolidation is a process that offers an excellent chance for you to get rid of the huge piles of credit card debts that you owe to various credit card companies. In the last few years, credit card has emerged as a very convenient means of transactions. It is also referred to as plastic money, as it eliminated the need of carrying large bucks of cash while going for shopping. All you need is just a card and you can do as much shopping, as you want.

However, the problem lies in the fact that because of this convenience, sometimes, people use it very carelessly. This eventually results in the high amount of credit card debts. What is more, the credit card companies charge a very high rate of interest, which eventually results in the substantial rise of the credit card debts at a rapid pace. Things can be even worse, if you owe debts on more than one credit card. When the overall due of all the credit cards are compiled, it makes a huge amount, which sometimes look like an impossible amount to pay off using your current income. In such extreme cases, the various credit card debt consolidation services may prove a great help to you.

Who Can Avail The Credit Card Debt Consolidation Services?

Some people have the misconception that credit card debt consolidation help is available to those, who have high credit score, which is not true. You will be happy to know that these services are available for every debtor - irrespective of how good or bad his or her credit score is. Even if a debtor is suffering from the adverse outcomes of bad credit, there is a specific card debt consolidation service available for him or her.

How Much Does It Cost?

The good news is that if you choose the debt management company with great care, you will end up availing these valuable services free. Many companies available, both online and offline offer you free credit card debt consolidation loan. Here, it is very important for you to understand that unlike its name, the credit card debt consolidation is not a loan, but it is a service that helps you consolidate all your credit card dues at a much lower consolidated interest rate and on much easier terms.

The credit card debt consolidation counseling offers you an excellent opportunity to pay off all your debts, while managing your finances in a much better manner simultaneously.

Credit card debt consolidation is a great financial tool that will ultimately put you on the path of a completely debt-free life. Therefore, if you want to bid farewell to all your debt related worries, look no further than credit card debt consolidation help through the best credit card debt consolidation counseling service.

Article Posted By :- Asheesh Mani

By Kimberly Palmer
Posted September 12, 2007

Dear Alpha Consumer,

I own my home with my husband. Our mortgage balance is $135,000. We also have $30K in credit card debt, which is where the big problem is.

The interest is killing me, and I cannot make a dent in the balances. I no longer use these cards as I am trying to pay them off. Should I refinance and lump this credit card debt into my mortgage? I could get an adjustable rate mortgage at an interest rate of around 5 percent. (My house was recently appraised for $225,000.) Read More

Deane secret online

CNNmoney recently featured an article highlighting key things that debt consolidation companies can’t do. One of which happens to be illegal. But, people keep falling for these ‘con’-sters because of the hole they’ve dug themselves in with debt. If you’re in the thick of it and can’t see a way out, don’t fall for these common myths about debt consolidation companies.

Myth 1: Getting out of debt is easy. The less reputable debt consolidation companies will promise you that they can fix your mess easily and quickly. And, some even claim to help you increase your credit score in the process.
Truth: Getting out of debt is a tough road. Sure, it’s a bumpy ride, but it’s worth it. See number 3. in Do you need a game plan for your finances?

Myth 2: We can clean up your credit history. That’s right. Some of these debt consolidation companies make the audacious claim that they can ‘cleanse’ your credit report of all of the bad marks.
Truth: Not only can they not clean your credit history, it’s illegal. The only items that can be removed from your credit report are debts that are inaccurate. But, the only way you clean up your credit report, is by paying your bills on time. And this takes a little while. Read More

Former US president Bill Clinton reportedly arrived at the White House deeply in debt. But since handing over the reigns in Washington, he’s wiped out what he owed and accumulated nearly $40 million in the process, mainly through speaking fees.

Not all of us are fortunate enough to be able to rely on a lucrative lecture tour to pay off our debts. And none of us will need $40m to break even, either.

But with more than six million* of us consolidating our debts in the past three years, more and more Brits are struggling to get to grips with their money worries. In a bid to get their borrowing under control, around one in seven adults have borrowed more money to ease their financial problems with unsecured personal loans the most popular choice. Read More