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Let Poor Credit Debt Consolidation Loan Solve Your Debt Problems

Posted by | Posted in Debt Management | Posted on 29-04-2011

Did you think there were no lenders to fund your debt consolidation needs with bad credit. Think again. Rather check the loan market thoroughly and you would surely find poor credit debt consolidation loans as fitting your bill.

Looking for lending agencies in the physical loan market can be struggling. Instead, go for an online search. Just write the exact loan on the search box in any of the search engines. Within seconds, they will come up with links to numerous lending agencies offering poor credit debt consolidation loan. One will then have to search through the various results to come to the best. However, if this too looks like a bit difficult, hand over the task to a reputable broker. They have links to several lending agencies in the UK. You just make an application to one broker and they will forward it to all the various lenders, who may have a best deal poor credit debt consolidation loan for you.

Poor credit debt consolidation loan is widely used by the people of UK to eliminate the debt load. You will not believe but it is much easier and cheaper to settle debts through this loan. If a person decides not to use the loan option and pay debts on his own, he often comes across the following problems. Firstly, the income may not be enough for debts. Secondly, if savings are utilized for this purpose, it will certainly not be a productive use of the savings.

However, poor credit debt consolidation loans do away with both these difficulties. When a customer applies for poor credit debt consolidation loan, he gets access to the large coffers of the lending agency. So what your income is does not matter when it comes to settling large debts. If the loan is secured against certain assets of the borrower, they often result in higher loan amount. Use the loan amount to pay the creditors.

Moreover, with debt consolidation loans paying off the debts, the savings can be kept for productive uses like expansion of business or funding higher studies of your ward. Poor credit debt consolidation loans are available for as long as 25 years. So no tension of paying the loan immediately. If one decides to pay through monthly installments, he goes on decreasing his loan balance with time. So, there is no tension of making a one time payment towards debts, which could have been back breaking.

Poor credit debt consolidation loan saves the user from yet another bad credit. Had it not been for these loans, the borrower would have surely found himself nursing credit deformities such as County Court Judgement longer.

Debt Consolidation Can Never Be A Mistake

Posted by | Posted in Debt Management | Posted on 13-04-2011

The purpose of debt consolidation is to pay only one loan. Many individuals are faced with the problems of paying many loans. There might be student loans, home loans, personal loans or even credit card payments. When it comes to all of these, there will be confusion about which one to pay and when to pay it.

Not only will the interest rates vary from bank to bank, the payment options as well as the time of the payment will also vary. To sort out this problem, a debt consolidation is sought. Through this method, the borrower may pool in all his debts, and take a fresh loan against some security. This method is normally sought to seek lower interest rates, and also to make sure the interest rate is fixed.

In most cases the collateral taken for this loan is a house. If there is no security, there are chances that the interest rate may be higher. So it is wiser to set the loan against some security. Many individuals who seek these loans will want to pay back certain credit card loans, as the interest on those will be higher than most loans.

The option of debt consolidation will also have to be thought of carefully by the person going in for such a loan. If he is doing this because he prefers this to declaring bankruptcy, there will be the debts to consider. He will have to pay back all the debts. It is sometimes better to choose this option, as it will allow the person more chances of maintaining his credit record, and it will be good for further use.

Debt consolidation is also used against property, as this will give the lender assurance that he is safe even if his loan is not returned. This is the only reason for him to reduce the loan interest rates. The borrower should also be smart enough to look around for several lenders, and check all their interest rates, before picking one lender.

The borrower must also not hesitate to ask if there are any various options that he can choose from. Some companies may indulge in forcing the borrower to refinance the loan, and get into a situation where he is unable to come out of it. So before applying for the loan, the borrower should also check the credentials of the company.

Debt consolidation also means that the unsecured loans are all becoming secure loans. This will mean that the borrower risks the chances of losing his property if he is not paying back on time. Though in this debt, the borrower needs to pay only monthly installments, the entire amount including the interest may calculate to a much higher amount.

Some companies also offer the options of offering debt consolidation loans, without it being secured. This option will also have to be looked into by the borrower. And he must seek the advice of a financial consultant before moving forward.

Best Ways to Grab the Debt Relief

Posted by | Posted in Debt Management | Posted on 25-01-2011

Grabbing debt relief is meant to pay off your debts. Stress and worry are hazards for your mental peace when debt begins to pile up, more than you can handle. You need to tackle this head on instead of getting deeper into this quagmire.

As debts increase so does the denial for credit from other lenders since you are no longer able to pay off the existing credit. However, the misery does not end here. You will be hounded with reminder letters and phone calls along with a few threats from your creditors, demanding you to pay off the amount you owe them.

Soaring bills for your regular expenses heighten the problem. The problem with many consumer debts or unsecured credit is that the interest rates are so high that even if you are keeping up with your minimal monthly payments, chances are that you will never pay off your debts anyway. If the interest wasn’t bad enough, once you begin to fall behind in your repayments or you borrow above the limit on your credit cards, you are likely to end up paying a whole host of other additional fees, such as late payment fines and over the limit penalties.

Faced with these state of affairs, you begin looking for permanent debt relief. You need to get your debts under control and get rid of them for once and for all. Remember, your debts didn’t pile up in day, so don’t expect to get debt relief in a matter of days either. Any option that you use to get out of debt will take time. So patience along with careful planning of your finances will really make it effective.

There are many different ways to get debt relief.

Best way to grab debt relief #1 - Get organized: Make a list of all your debts and their interest rates. Keep a note of incoming money and draw a budget and go by it.

Best way to grab debt relief #2 - Pay-off the highest: See which of your debts is attracting the highest interest rates and target them. The sooner that you pay them off, the sooner you will be to getting some debt relief. Pay the minimum on all of your other debts, except for the debt at the top of your list and pay as much on that one as you possibly can.

Best way to grab debt relief #3 - Talk to Creditors: Next, you will need to call each of your creditors. Find out if you could pay your debt in full for less money or if they would lower your interest rates while you are paying your debts off. Ask your creditors how you can work together to get your debts paid off. You may be surprised at how willing they are to help you repay your debts.

Best way to grab debt relief #4 - Speak to a credit councilor: If you are not having a much of luck with creditors by yourself then consider a credit counseling service to help you get some debt relief. A credit councilor will work with you and your creditors to lower the interest you are paying and make your monthly repayments more manageable. He will also teach you how to budget. Some credit counseling agencies give their customers the option to pay money to them each month and have their debts paid on time by the company itself.

While debt relief is important to get out of the debt you are already in, it is also important to make sure to educate yourself in how to budget your money carefully and manage it better in the future. This will help you to avoid repeating the continuous cycle of getting in and out of debt.

How To Clear Your Credit Card Debts

Posted by | Posted in Debt Management | Posted on 30-10-2010

These days there are so many ways to let credit get out of control that you will probably be constantly aware of the dangers of over spending. So many people have access to far more credit than they think they need or can afford, and it is a constant challenge not to let it get out of hand and fall into the trap of spending it all. For most people, credit cards are probably the most dangerous element of this situation and the one they will keep tabs on most closely. If you can get your credit card debts under control then you will have gone a good way to getting your finances and especially your spending under control. This is vital as credit card debt and other similar short term debts are one of the first places future lenders will look when assessing your credit worthiness for future borrowing.

There are a few very simple ways to go about keeping credit card debts under control. They are really just common sense but it is useful to recap over them as many people fall into the trap of thinking that there is some sort of magical short cut to clearing your credit card debts. Sadly this is simply not the case, and despite all the amazing deals on the market, such as zero per cent balance transfers, and loyalty rewards, the only way to clear your self of your credit card debts is to simply pay them all back.

The first thing you should do is cut back on your credit card use. You will have to stop spending so much so that your repayments can start to go back to reducing your balance rather than just keeping it where it is. If you think you will have trouble cutting back on your spending, then perhaps you should think about removing your credit cards from your wallet or purse, and leaving them at home. An even more drastic step is to cut them up.

You should also make sure you are making more than the minimum repayments. Making minimum repayments will never clear the debt, or at least it will take you a very very long time. What you should do is make as much above the minimum payment as you can afford, concentrating most of your repayments on the cards with the highest interest rates.

If you are having real difficulty meeting repayments, then you should perhaps consider contacting the credit card company and telling them of the situation and asking them if they can do anything to help you.

Getting Out Of Debt

Posted by | Posted in Debt Management | Posted on 05-10-2010

Getting Out of Debt, The Smart Credit-Card Plan, the perfect paydown strategy

Behavioral economist Meir Statman, recently said “getting out of debt is the financial equivalent of trying to quit smoking.” Just like any bad habit, good intentions alone will not be enough. To ensure success, we need to break our underlying patterns of behavior. How is it we live in the richest most powerful country in the world, but the average American is more than £11,000 in debt. Our European friends who live by a mainly debit card system have an average savings of £13,000. On a recent visit to Germany, I was shocked to find that less than 35% of all the shops and restaurants accepted credit cards. What would we need to do to reverse this trend and get into a (plus) situation.

Plastic Surgery
If we are serious about paying off our balances. We don’t have to literally cut up our credit cards, just stop using them routinely. We should go green for our everyday spending. Try carrying around a set amount of cash to use each week. We make better purchasing decisions when we actually have to hand over the green stuff plus there’s a preset spending limit. When we run out of money, we stop spending it’s that simple. When the only way to purchase is plastic, buying online for instance, then use your debit card. Your debit card can also be used as an emergency substitute for cash should you run out.

Leave Those Cards At Home
The best way to ensure that you enforce the cooling off period on new credit purchases is by taking the cards out of your wallet. You should store them in a place that’s not easily accessible and safe. Do not let others know where you have hidden them.

Close The Accounts No Longer Needed
Having unused credit available from lenders with whom you’ve had a long relationship will help boost your credit score. Having too many will harm your credit score. As a rule, 3 credit cards is what works best and try to never spend more than 50% of the available credit on any of the cards. This will keep your score at it’s highest. You should also consider closing all your store cards, if you need to make a purchase then use your credit card and pay it off at the end of the month.

Lowering Your Interest Rates
Start by reducing what you pay in interest. We can start by calling our current credit card companies and explaining that we intend to transfer our balance to another issuer unless our interest rate is lowered. Almost all credit card companies run promotional programs with low or 0% interest. They will be willing to put you on one of those rather than risk losing your business. All you need to do is ASK.

Tackling Those Credit Card Balances
Finally we need to develop a strategy for paying off our existing credit card balances.

Gather all your credit card statements together and make a simple table listing the entire amount you owe, and the minimum payment and interest rate for each card. This will help us determine the order in which we should pay off our cards. We need to focus on the highest interest rate cards first and pay off as much as you can each month while making only the minimum payments on our other cards. When the first card is paid off, use the same strategy on the next-highest interest rate card and so on until you’re debt-free.

Late Payments
Are the number one cardinal sin of debt management. You get hit with hefty late fees and very high penalty rates that can go to 30%, plus of course your credit score will take a big hit.

We all have a responsibility to improve our financial literacy and develop the required skills and practices for effective financial management. There is a real need to get away from the “Someday things will get better in my life” or the “Someday I will be able to earn enough money to stop worrying about the bills. There is a lot more to life than that, but it has to be said and understood that the only person that can change your life is YOU. There is NO substitute for Action! With Action, you will overcome your fears and hesitations and accomplish everything you set out to do and more.

Have an opinion or a question you would like me to answer, then write me! http:www.CarlHampton.com

Debt Consolidation and Refinance Mortgages +

Posted by | Posted in Debt Management | Posted on 22-07-2010

Mortgages are secured loans that are given to first time buyers, homeowners and people who have bad credit. Once you are accepted for the loan, you must repay the debt, which will include interest rates. Some refinancing loans have additional fees attached. The secured loans have collateral attached, means that if you fail to make payments, you are subject to foreclosure or repossession. The bank will come and take your home and sell it for the amount you owe.

This is why it is wise to make sure you know what you are getting into if you plan to refinance to consolidate your debts. Some loans permit buyers to repay the loans in 25 years, while others allow 30 repayments. Few of the lenders available on the Internet that offer refinance loans for consolidation of debts are aware that people go through hard times-or at least they don’t deal with people directly enough to actually feel this hardship through talking to them.

On the loans that offer lower interest rates, combine payments for debt consolidation. If you can manage to pay for the loan in the time stipulated, it is likely that you will take less time to pay back the loan amount borrowed. Once you find a lender to refinance your mortgage and combine your bills for debt consolidation, you will receive a loan based on capital and interest.

The Repayment loans for refinancing and consolidation make it easy, since the lenders will combine the interest and repayments into one monthly installment. Still, few lenders will allow you to repay the interest rates only; however, be aware that these types of loans do not combine your payments for consolidation; rather they put you at risk in some instances.

Still, there are several types of loans available that will help you refinance for debt consolidation, so keep an open mind and mull over your choices carefully before you make a final decision.

One of the most important tasks debtors must carry out to achieve in debt consolidation is keeping away from complications. When debtors have bills that are behind merely because they didn’t have the cash to repay the debts, then their stress will build. Some people may go on binge, spending instead of paying their bills, and procrastinating instead of working to restore their credit.

These people may believe that after three, seven or ten years the problem will end, since the credit reports remove any pending debts after seven years and any bankruptcies after ten years. The fact is, the problem doesn’t go away the problems only get bigger. Yes, it is true: after three years, if you manage to payoff a debt, then the debt is removed from your credit report. In addition, yes, it is true if after seven years you failed to make payments the debt is removed in most instances from your credit report.

Furthermore, it is true that in many cases, after ten years, bankruptcy is removed from your credit report. If you have the patience to wait this long, can tolerate the hassling phone calls and letters, and don’t mind worrying about going to court for this long, then by all means procrastinate.

Bills and debt consolidation is optional, however bill and debt reduction is your best bet. You can do this by start paying as much every month on your bills as possible to reduce your debts.

Credit Card Applications – Getting Approved After Refusal

Posted by | Posted in Debt Management | Posted on 09-05-2010

It can be disheartening when you apply for a credit card and get turned down. However, in the vast majority of cases, it really is not anything that you need to worry about. While there are some people out there who would be approved for virtually everything they could think of applying for, for the vast majority of us, applying for a credit card can take a little time and some trial and error.

Credit card providers generally have pretty strict criteria that they are looking for from applicants when they launch a new credit card. They will be targeting the card at a specific segment of the market and will have a credit score range that they are seeking from applicants. If you do not fall within this score range, you will not be in their target range and will be refused the card. But this does not mean that you will not be successful when you apply for another credit card that is targeting your section of the market. And it is important not to take the rejection to heart.

Determining Your Credit Score

You may feel that you are trustworthy and always pay your bills and that you should not be turned down for credit, but remember that credit approval is no longer a personal exercise but is by and large automated and subject to computer credit checks and the like. A computer will look at your credit score and give a yes or no answer, and no individual attention will be paid personally to your application at all. It is a necessary way of running the system for lenders who have literally thousands of clients and applications to manage as efficiently as possible.

The Next Step After Rejection

If you are refused for credit, then apply to a couple more companies. You should try not to rush the process and apply for one card at a time. You usually receive your answer within a couple of days. The reason for this is that if you apply for too much credit too quickly, it will show up on your credit report and may cause lenders to turn you down. So be patient and if possible, ask the lender why they have rejected you.

Patience is a Virtue in Credit Card Applications Too

The chances are you are simply applying for the wrong type of card, for example, if you are a student, you will really only be approved by companies that make a point of providing credit cards to students and most other will reject you as a matter of course. So by a little patience, and taking the time to make your application to a credit card company that targets the segment of the market that you fit into, you should be able to get your hands on a credit card before too long.