Government Debt Consolidation-They Do Exist

Saturday, June 2nd, 2012

Not only are there debt consolidation loans available through private sector banks and credit unions, there are also government debt consolidation loans available too. These loans are funded by various government organizations and are geared to help people get some financial relief by paying off their debt more quickly.

A government debt consolidation loan operates under the very same principal as any other type of consolidation loan: it allows someone who has multiple credit cards or other debt to pay off all the smaller debts with the loan. That leaves them only having to deal with making one payment every month to repay the consolidation loan.

This is almost always cheaper than having to pay even the minimum payments on several smaller loans. That means they can get out of debt faster and possibly even have a little money left over in their pocket every month.

In the long run, the one payment is often a lot less than the total amount of money you were spending on multiple smaller payments every month. Since your payment is the same amount every month, it is much easier to make and stick to a budget. That can help keep you from just falling back into a bad pattern of spending and poor money management habits.

These loans are particularly helpful to students who have racked up a lot of credit card or student loan debt over the years as they were pursuing a higher education.

Having just one, relatively small loan payment every month will make it much easier to deal with all the debt and pay it off in a shorter time frame. Paying your loan off quicker will save you a lot of money in interest and allow you to be debt free, which is always great, much more quickly.

These types of consolidation loans can be a great alternative for many people but it is very important that you carefully research the place that is offering the loan. There are some companies that claim to provide government loans but in reality they really aren’t associated with any government programs at all.

Many of these companies will promise to “hook you up” with a government loan if you pay a “small processing fee”. Also, some of these companies will also promise to help you get government grant money to pay off your credit card or student loan debt. These promises are phony since government grant money doesn’t go to pay off debt, it goes to research facilities or small businesses to help them get started.

Be very careful of who you trust when you are searching for a debt consolidation loan. It’s a sad thing but there are a lot of businesses that are started on the idea of ripping off unwary customers.

Government debt consolidation
may be a viable option for you if you want to get rid of your student loan and credit card debt once and for all. Just be careful who you deal with.

Get Rid Of Unpaid Credit Card Debt

Sunday, March 25th, 2012

To be blunt, the economy has been in rough shape for a while now. Even those who were normally quite good at staying out of debt, or were at least able to keep up with it, have found unpaid credit card debt piling up. While it’s unfortunate, it’s usually due to circumstances beyond their control. If this sounds like you, then you should know that it’s not your fault, and that there are things you can do to make things better.

There is an old saying that says if you’re in a hole then you should stop digging. This applies perfectly to credit card debt. No matter how bad it is, the first step is to stop using your credit cards. No excuses. Period. This is vital because unpaid credit card debt has a nasty way of following you around for years.

If you have a lot of higher interest cards, then finding a single card with a lower rate to move those balances to will help. This is a process known as ‘consolidation’ because you are combining several payments into one. The idea is that the lower interest rate will now be applied to your total balance (after it is moved), making your overall payment much lower. It is also more convenient to make and keep track of one payment versus several.

Be careful with consolidation though. The terms and conditions of transferring balances can be tricky, so make sure you fully understand the terms before moving any money to a particular car. Furthermore, it can be very tempting to charge more to your credit cards because you will be saving more money each month through consolidating. Resist that temptation at all costs. As mentioned earlier: stop digging!

If consolidation isn’t an option for you, or you would like to try another way to get rid of unpaid credit card debt, then the following method will work very well. It is sometimes referred to as the snowball method because the effects get bigger and bigger as you go along.

The first step is to write down all of your debts and how much you owe on each one. Put them in order from the least amount owed to the most. Pretty easy so far, right? You continue to pay the minimum on all of your loans except the one at the top of the list (the one with the lowest balance owed). You then pay as much as you absolutely can toward the smallest debt, scraping every extra penny together that you can.

As you get the top debt on your list paid off, you move to the next one down. However, you now add whatever you were paying on the previous loan to the new loan, plus the minimum you were paying. Then, when you get to the third debt, you combine what you were paying on debts one and two, and apply it to the third one. This allows you to get rid of unpaid credit card debt much faster, and you will be making rather large payments by the time you get to the bottom of the list.

Free Credit Card Consolidation – Really

Friday, March 23rd, 2012

Getting into to debt has been a problem for as long as people have been lending money. However, the modern situation is worse than it has ever been. Chances are good that you are carrying more debt than you would like. Add a troubled economy and sluggish job market to the mix and it’s fair to say being in debt isn’t your fault. Circumstances beyond your control can put you into a downward spiral all too quickly. Before you know it, you have several cards, and you are falling further behind. A good way to get you on the right track is free credit card consolidation, but does it really exist?

Before we answer, let’s take a moment to explain what debt consolidation is. In simple terms, it’s combining a lot of debts into a single debt. What? That would be a huge debt! Yes, it would, but it isn’t as bad as you think, as you will see.

Credit card debt is some of the worst debt you can have. The terms of repayment make it virtually impossible to get out of debt if all you ever pay is the minimum balance. Then, to make matters worse, the card companies add on fees and increase your interest rate if you’re even one day late with one payment. They are in business to make money (as are all businesses), and the deck is heavily stacked in their favor.

So, you need to do whatever you can to get rid of as many credit card balances as you can. Free credit card consolidation is one way to do it. The good news is that you have a few different options for getting this type of a loan.

You can use a new credit card that offers a good rate on balance transfers. This will effectively lower your overall interest rate, and thereby reduce how much you spend each month. Be careful though! You have to read all of the fine print and understand the terms of the agreement. Some cards will charge you for transferring money, which wouldn’t be free. The law says they need to tell you all of the terms of the card, and that applies to balance transfers. A new credit card may or not be the best option, but it is usually better than nothing.

Your next choice is to get a loan from a lending institution. For most people, this means their local bank. While you may be able to get consolidation loan, and get it at a decent rate, you may be able to get an even better deal by going online. The reason online free credit card consolidation is so attractive is that it makes it easy to compare several offers all at the same time. You also get access to many more lenders, one of which should be able to help. Just like with credit cards, be sure to read all of the small print and do your due diligence before accepting any offer. Once you find the right offer, you will be back on the right track.