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Debt Consolidation vs Payday Loans

Posted by | Posted in Debt Management | Posted on 21-04-2011

So you are thinking what does debt consolidation and payday loans have in common? Well typically people who opt for payday loans are not very far from those who are currently considering debt consolidation as an effort to lower high interest credit card monthly payments. We live in a country where credit is relatively easy. In fact on any given day, most of you will receive a letter from a credit card company offering you the world but spelling out the harsh details in the fine print that unfortunately few ever take time to read. This article is not meant to pit debt consolidation and payday loans as good vs. evil.

It is intended to help you understand why people chose both alternatives. First of all, what exactly is debt consolidation? Debt Consolidation is the process of aggregating unsecured debt in order to lower overall interest rate and have one monthly payment. Who needs debt consolidation? If you are stuck with high interest monthly payments, especially from credit card debt, it is likely that debt consolidation would be appealing. In many cases people simply can not afford to pay what they are currently paying.

Keep this in mind. Lets transition to payday loans or cash advance. People that want a cash advance are those who are in a bind and need emergency cash. Payday loans and cash advance have high interest rates and many states prohibit them. I am not against them because I understand why people may need them as a last resort. In both insistences people are seeking debt relief; however, those solutions are not the ultimate solutions to the problems they try to solve. The true answer lies in our ability to spend vs. save.

The best debt consolidation program will get you out of debt if you finish the program; however, to fix the problem you must understand that living within your means is the true solution. A cash advance may help you pay for a bill when you come up short, but saving for a raining day is a lot cheaper than getting a payday loan. By acknowledging our own weakness, we can become stronger when we take action to improve ourselves.

Debt Consolidation vs Payday Loans

Posted by | Posted in Debt Management | Posted on 30-07-2010

So you are thinking what does debt consolidation and payday loans have in common? Well typically people who opt for payday loans are not very far from those who are currently considering debt consolidation as an effort to lower high interest credit card monthly payments. We live in a country where credit is relatively easy. In fact on any given day, most of you will receive a letter from a credit card company offering you the world but spelling out the harsh details in the fine print that unfortunately few ever take time to read. This article is not meant to pit debt consolidation and payday loans as good vs. evil.

It is intended to help you understand why people chose both alternatives. First of all, what exactly is debt consolidation? Debt Consolidation is the process of aggregating unsecured debt in order to lower overall interest rate and have one monthly payment. Who needs debt consolidation? If you are stuck with high interest monthly payments, especially from credit card debt, it is likely that debt consolidation would be appealing. In many cases people simply can not afford to pay what they are currently paying.

Keep this in mind. Lets transition to payday loans or cash advance. People that want a cash advance are those who are in a bind and need emergency cash. Payday loans and cash advance have high interest rates and many states prohibit them. I am not against them because I understand why people may need them as a last resort. In both insistences people are seeking debt relief; however, those solutions are not the ultimate solutions to the problems they try to solve. The true answer lies in our ability to spend vs. save.

The best debt consolidation program will get you out of debt if you finish the program; however, to fix the problem you must understand that living within your means is the true solution. A cash advance may help you pay for a bill when you come up short, but saving for a raining day is a lot cheaper than getting a payday loan. By acknowledging our own weakness, we can become stronger when we take action to improve ourselves.

Advantages of Student Debt Consolidation

Posted by | Posted in Debt Management | Posted on 17-11-2009

Student Debt Consolidation refers to consolidating all debts such as outstanding credit card debt, mortgage loans, student loan debt, car loans, etc., into one simple aggregate loan with a lower interest rate and lower monthly loan payments.

StudentDebtConsolidationPrograms.com offers different student debt consolidation options and there are some very flexible student debt consolidation programs available to meet the unique needs of the student. For example, if a student has outstanding unconsolidated student loan debt and is six months from graduation, then they should already be exploring those available options. The right student debt consolidation program can mean substantially lower monthly student debt payments, savings of thousands of pounds every year in total student loan debt balance, and the ease of just having to make one student loan debt payment. There is no cost or obligation to consolidate a student loan, so there is nothing to lose and everything to gain by exploring all student debt consolidation programs and options.

From reducing monthly payments by using Student debt consolidation programs, to repaying student loan debt and improving credit ratings there’s always a way a student can improve their student loan debt finances.

First and foremost, consolidating all outstanding payments into one single sum simplifies the task of managing all their student loans and their payments. Instead of making credit card payments on a number of different credit card loans, students now only have to make a single Student Debt Consolidation payment.

Student debt consolidation leads to a significant reduction in rate of interest. This is especially true in the case of credit card debt consolidation. Most credit card companies command an alarming rate of interest, especially when behind in payments. Going for a student debt consolidation loan is much cheaper because the right student debt consolidation program companies provide a much lower rate of interest than those commanded by credit card companies.

A Debt Consolidation Program To Relieve Debt

Posted by | Posted in Debt Management | Posted on 23-10-2009

Debt consolidation programs are good if you are paying on several different loans. They can make your life easier by giving you one monthly payment. Your monthly debt decreases if the program you use for debt consolidation stretches your payments over a long period of time.  Paying less every month will free up some extra cash.
A successful strategy sometimes is to use a debt consolidation program. With these programs you can manage various high-rate revolving debts with one payment. Let’s say you have several high credit card balances with high interest rates. With the debt consolidation program, you will be able to lower the interest rate you’re paying and manage the debt better.

Debt Consolidation Programs Reminders
A debt consolidation program doesn’t eliminate your debt. All these programs do is move your debt to make it easier to make the payments.  You will have to pay the money back sooner or later since you do owe it.

One problem with a debt consolidation program is you will feel like you owe less.  Your credit cards will again have large amounts of available credit for you to use. Beware of digging yourself into a deeper hole by continuing to add to these balances.

With a debt consolidation loan you may end up paying more in total interest. By stretching your payments over a longer period of time, your total interest cost could possibly be higher. Of course, it may help you more easily manage your current cash flow.

There are risks by using debt consolidation programs. If you’re using a home equity loan or line of credit to consolidate your debt, the consequences of falling behind on the payments can be disastrous. You could lose your home if it is pledged as collateral against your loan.
How to Choose the Best Debt Consolidation Programs
You should shop around to find a program that fits your needs. Local credit unions and banks you already deal with are a good place to start. They are a reliable source and will most likely give you a fair deal. You might also try a bank you aren’t currently working with. Be careful of scams though, when searching the Internet for debt consolidation.

When searching for a debt management company, look for experience, how professional the company is, their assistance and budgeting services. Try to find a local company you can communicate with without having to drive for hours to talk to your counselor.

The debt management industry is unregulated. Scam artist are out there waiting to charge your outrageous fees without informing you of the best solution for your situation. Try to find out some of their customers and talk to them. Get recommendations and research online if possible.
When you team up with a debt management company who is less than above board, you may be left feeling insecure. You should relate well with your counselor and understand what they suggest. That peace of mind should help you pursue your goals and your financial future more comfortably.

Also the debt management company your choose should be a be advise you on how to deal with angry creditors, whether bankruptcy is an option or how to consolidate debt or simply reorganize your bill payment schedule.

Remember, your main goal is to work towards a better understanding of your financial debts. You will want to learn how to take care of your own debts, assets, and financial goals through your counselor’s advice. The debt management and debt consolidation is only stepping stone towards your own financial self-reliance.