| When it comes to debt consolidation some
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| | late fees...what a racket! Don't get
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| people dream of day when all their bills
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| | caught in this little trap.Retirement
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| will disappear. Next to hitting the
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| | LoansI'm not going to give a lot of
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| jackpot, a debt consolidation loan is
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| | detail on this one because I think it is
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| some times the only way out for a debtor.
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| | a bad idea and only should be used to
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| No more playing "pick the bill out of the
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| | save you from bankruptcy. There are too
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| hat" to see who gets paid, all you have
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| | many big negatives other wise to consider
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| is one affordable check to write each
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| | this option for debt consolidation. You
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| month and pretty soon the balances
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| | loss your tax benefits and may have to
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| quickly disappear. WAKE UP! Come back to
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| | pay a penalty if this don't go smoothly
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| reality, it isn't quite that easy,
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| | for you. Not to mention the big kicker
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| however if you do it right it works
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| | that if you are borrowing money from
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| pretty well.Different Ways to
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| | yourself that means your money is not
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| ConsolidatePeople ask me "What's the best
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| | working for you but against you. Not only
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| way to consolidate debt?" and of course
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| | that if you lose your job or quit you
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| "What's the catch?" Well, it just really
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| | most likely have to pay off the loan
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| depends on the situation. There are all
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| | immediately. After you learn a few things
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| sorts of ways to do it and some folks get
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| | about investing you will see quite
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| really creative too. I'll tell you about
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| | clearly how this is not such a great
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| some of the more popular ones and the
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| | option even though it's the easiest to
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| pros and cons you get with them.Just
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| | get.Debt Consolidation LoansEven though
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| remember because it looks good doesn't
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| | they may seem to be the best choice or
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| mean it is. The advertisers now a days
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| | even the most logical, it still may not
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| are pretty good about disguising those
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| | be your best bet. A debt consolidation
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| higher interest loans with payments that
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| | loan is an unsecured personal loan, and
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| go on forever because all you see is the
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| | they can be difficult to get if you
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| lower payment. So try and ignore that
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| | already have a lot of debt. The bank
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| sweet pitch for a lower payment if it
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| | doesn't like to give you a loan if you
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| means you just dug yourself a bigger hole
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| | monthly payment on your debt not counting
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| and put yourself deeper in debt.First
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| | your mortgage is more than 15%-25%,
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| things first. Let do a little wake up
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| | depending on your credit, of your gross
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| call. If you are just barely trending
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| | monthly income (before taxes). The bank
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| water because you are in to much debt,
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| | feels like you are just going to go and
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| just realize that not all these options
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| | charge back up your balances, which
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| will work for you. And some times, no of
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| | happens all too often. Because of those
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| them will. If that's you, keep your head
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| | big negatives the going interest rate on
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| up high and don't drown. Many people can
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| | these types of loans are about 15% or
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| really cut their debt without ever
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| | more. These are definitely not the best
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| consolidating.And don't forget, if you do
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| | interest rates compared to the other
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| decide to get a debt consolidation loan,
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| | items we discussed so far. However, if
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| don't think the fairy god mother is going
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| | you can get a debt consolidation loan
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| to make thing all better. After all, once
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| | with an interest rate better than what
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| you do a debt consolidation you will
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| | you have right now it may be beneficial
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| still have to make a payment until that
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| | for you to get one.Consider a Debt
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| loan is paid off.Home Equity LoansIf you
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| | Consolidation Loan if:You are willing to
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| have been paying on your home for a
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| | close your credit card accounts so you
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| couple of years, put a pretty big down
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| | don't end up in the same trap everyone
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| payment when you got it and are lucky
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| | else does and dig a deeper hole of
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| enough to be in one of those areas of the
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| | debt.The interest rate you will be paying
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| country where the home values shot
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| | is lower than what you are paying right
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| through the roof, you may be sitting on
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| | now on any debts that you would
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| little piece of freedom in the form of
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| | consolidate. Make sure the term is not
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| equity in your home. To
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| | more than 5 years or you could be falling
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| get to this little nest egg you either
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| | into a different trap altogether and end
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| have to sell your home or borrow money
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| | up paying way to much interest for the
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| against it. And so enters the home equity
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| | term of the loan.Don't use a Debt
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| loan. Another little thought...If you
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| | Consolidation Loan if:the most obvious
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| still owe a considerable amount on your
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| | reason is if the interest rate is way too
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| home, IGNORE the ads for home equity
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| | high.The term of the loan has been
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| loans for more than the value of your
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| | extended to 10 or 15 years. It will show
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| home. Not only are they very expensive
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| | you a really cheap payment but wait until
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| but also very dangerous. And if you are
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| | you add up all the money you will be
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| still considering one of those loans
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| | paying back you won't consider it a good
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| Contact Me and I'll be more than happy to
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| | deal then.Counseling AgenciesAs the ads
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| give you a hundred thousand reasons not
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| | on late night TV and cable claim to be
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| to.If you want to be a stickler about it
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| | able to consolidate your debt i.e.
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| there are actually two different types of
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| | "bills", into one small monthly payment
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| home equity loans. The first, which is my
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| | "no matter what your credit history".
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| favorite, is the home equity line of
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| | Every once in a while you these ads are
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| credit (HELOC), it uses the equity in you
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| | for a home equity loan, but more
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| home like a credit card. You can use a
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| | recently they have leaned to more often
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| little as you want or up to your limit,
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| | promoting credit counseling
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| and once you pay it down enough you can
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| | agencies.Counseling agencies go to the
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| keep on doing it. It's very useful when
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| | lender and negotiate a lower interest and
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| done correctly because most of them have
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| | or fee. After that you end up making one
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| some sort of interest only option which
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| | monthly payment to the counseling agency,
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| will give you greater flexibility. Hence,
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| | Which then pays your creditors. Their fee
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| that's why it's my favorite. And the
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| | is lumped into the monthly payment. A lot
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| other type is a fixed amount, rate and
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| | of times you could have done much better
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| term. Your payment stays the same all the
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| | of for yourself if you would have dealt
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| time. Just to make this simple when I
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| | with the creditors personally. This is
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| talk about a home equity loan it will
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| | not really a debt consolidation loan
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| refer to both of these types.Many people
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| | since you don't really refinance
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| use home equity loans for debt
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| | anything, it more like debt
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| consolidation. They will often get a
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| | restructuring. If you can stick with the
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| pretty good interest rate, and since you
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| | program you can be out of debt in 3-5
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| can deduct interest payments on their
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| | years.The biggest fear people have when
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| taxes, making the "real" cost even lower.
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| | dealing with the counseling agencies is
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| But, of course there is a down side, you
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| | that the agencies will ruin their credit.
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| must use your home as collateral. Which
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| | Quite honestly if you are already behind
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| is just a fancy term to say if you miss
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| | on your bills and haven't been able to
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| your payment I can take your house. And
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| | put a dent in them, a counseling agency
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| There goes the roof over your
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| | debt consolidation program is not going
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| head...Literally!Consider a Home Equity
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| | to make your credit much worse than it
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| Loan for Debt Consolidation if:You won't
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| | already is. It will make your score drop
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| be leveraging your home so much that you
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| | a bit, but when you look at the benefit
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| are borrowing pretty close to, or more
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| | of being debt free a few years down the
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| than, the current market value of your
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| | line it's a lot better alternative to
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| home.You can pay it back in 5 years or
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| | declaring bankruptcy.Consider debt
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| lessYou are in debt because of unusual
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| | consolidation with a counseling agency
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| circumstances, like an unexpected
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| | if:You are falling way behind on your
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| accident or hospital bill, but for the
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| | bills and there is not another
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| most part you have excellent money
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| | alternative. These kinds of counseling
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| management skills.DON'T use a home equity
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| | programs are for people who are having
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| loan for debt consolidation if:You are
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| | problems paying their bills on time, not
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| going to have to borrow 100%-125% of your
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| | for people who want a lower interest
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| home's value. Interest rates are high on
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| | rate.Most of your debt is not a secured
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| these types of loans not to mention you
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| | loan. In other words a car loan, home
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| will be stuck in your house and won't be
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| | loan, or a student loan. Since there is
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| able to move for any reason for a very,
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| | collateral involved the counseling agency
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| very long time.Your marriage is on the
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| | has a harder time renegotiating the
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| rocks. Separation and divorce may not
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| | terms.Don't do debt consolidation with a
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| make it possible for you to remain living
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| | counseling agency if:You know yourself
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| there. Especially if you have a court
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| | better than anyone else if you can't
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| order to move. Not to mention you would
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| | stick to a little program for a week or a
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| loss a great deal of money if you had to
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| | few months by all means don't try and do
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| short sell it (You would still have to
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| | this program that is going to take a few
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| pay off the mortgage before you can sell
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| | years to complete.You haven't done you
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| it)Now if you think that you are in debt
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| | due diligence and thoroughly checked out
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| because you just don't make enough
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| | the company. Since they are acting as a
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| money...well, I am surprised you made it
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| | mediator and you are paying them they can
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| this far. With that type of thinking as
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| | screw things up really quickly and you
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| soon as you pay off your credit cards you
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| | will still be held responsible (it really
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| will just find another excuse to charge
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| | does happen check out the news release
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| them again, then your home will really be
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| | section) Make sure you choose an agency
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| at risk.Credit CardsConsolidating your
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| | that will give you the support you need
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| debt on a credit card comes off as a
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| | for the long haul...3-5 years.Protect
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| pretty bad idea; however it can actually
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| | YourselfBe wary of credit counseling
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| be a great resource if done correctly.
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| | organizations that:-charge high up-front
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| Credit cards sometimes offer some of the
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| | or monthly fees for enrolling in credit
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| lowest interest rates around and they are
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| | counseling or a Debt Management
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| easier to acquire than most debt
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| | Plan.-pressure you to make "voluntary
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| consolidation loans, but the best part is
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| | contributions," another name for
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| that they don't require collateral like
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| | fees.-won't send you free information
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| your home equity line does. That is an
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| | about the services they provide without
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| important thing if a bad situation pops
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| | requiring you to provide personal
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| up and catches you unprepared. You can
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| | financial information, such as credit
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| either call your current card company and
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| | card account numbers, and balances. -try
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| find out what their interest rates will
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| | to enroll you in a Debt Managment Program
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| be on a balance transfer to their card,
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| | without spending time reviewing your
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| or if you are like me you get tons of
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| | financial situation.-offer to enroll you
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| offers in the mail for companies offering
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| | in a Debt Managment Program without
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| to consolidate your debt onto a credit
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| | teaching you budgeting and money
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| card you can choose the best one. A big
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| | management skills. -demand that you make
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| warning here...READ THE FINE PRINT! Make
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| | payments into a Debt Managment Program
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| sure if you transfer the balance it will
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| | before your creditors have accepted you
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| help you not hurt you. I give more tips
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| | into the program.Creative Alternatives to
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| on how to handle this in my FREE
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| | Debt ConsolidationNow it's time to start
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| newsletter so make sure you sign
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| | to use that space between your ears, your
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| up.Consider using a credit card for debt
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| | brain. Just because none of these options
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| consolidation if:You can get a lower
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| | work for you doesn't mean that you should
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| interest rate; make sure it is a fixed
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| | give up! You have made it this far.Borrow
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| rate and not just a low intro rate,
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| | against the cash value of your life
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| that's how they get you. Please Read The
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| | insurance policy. If you've built up a
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| Fine Print.You never pay the minimum
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| | cash value in your policy, you should be
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| payment, and they tease you with a really
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| | able to tap it at a low rate. Best of
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| low one, and you pay as much as your
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| | all, it doesn't have to be repaid. The
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| budget will allow each month to get rid
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| | downside is that your loan will decrease
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| of the debt quickly, after all that's
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| | your death benefit, so make sure you have
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| what this is for.You close out the
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| | enough coverage to protect your heirs.
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| accounts that you are paying off so that
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| | (You may want to buy a supplemental term
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| you don't go on a shopping spree. A word
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| | policy.)Make it easy for yourself call
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| of caution if you close too many account
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| | all your credit card companies and get
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| it will hurt your credit score.Don't use
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| | them to change the due dates that are
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| a Credit card for debt consolidation
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| | more convenient for you so they fall all
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| if:You can only get an interest rate that
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| | on the same day right around payday. This
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| is higher than what you have because you
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| | way you sit down once or twice a month to
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| have bad, dinged, or a bruised credit
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| | do your bills instead of 10 different
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| history.You are just so addicted to your
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| | days.Think of Debt Consolidation as one
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| credit card that you can't bear the
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| | of the many tools in you arsenal to get
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| thought of getting rid of one or more of
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| | yourself debt free.Mical Johnson is
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| them.You lack consistency in paying your
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| | affiliated with Rock Financial, Inc., a
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| bills on time. All those late fees start
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| | Licensed Correspondent Mortgage Lender,
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| to add up pretty quick at $25-$30 a pop,
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| | Florida Department of Finance. Mr.
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| and then you pay 18%-30% interest on the
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|
