If you've amassed a large amount of debt and you're beginning to wonder how you will pay all of your bills, you might consider going the debt consolidation route. Homeowners can submit their personal details below and have a great debt consolidation loan from up to 4 lenders!
Debt consolidation involves taking high-interest balances on a multitude of credit card bills and combining them into a single balance. It can involve a variety of different options, including debt consolidation loans, transferring balances to a zero percent credit card, or a home equity loan or home equity line of credit. Interestingly enough, however, some experts say individuals who take out a home equity loan to pay off credit card debt accumulate similar debt in a two-year period.
The reason for this is simple, accumulating debt is a habit and it is an exceedingly tough habit to break. If your tendency is to overspend, chances are you will continue to do so, even after you've taken out a home equity loan. In addition, if you need debt consolidation, it is likely that you will not qualify for the lowest possible interest rates. Those are reserved for people with the best credit ratings.
Debt Consolidation - What Are The Options?
Having a lot of debt is not uncommon today, and for many, it seems that knowing how to get
out of debt is just about as uncommon, too. If you have a lot of debt and want to find some
relief, there are a number of options that may be available to you.
Still, if you are determined to undergo debt consolidation, there are a few key things you need to know. To begin with, a home equity loan is a fast, simple way to dig yourself out of debt. However, if you have difficulty paying the loan back, you could end up losing your house. In addition, although interest on home equity loans is generally tax deductible, such a tax break could be limited. You may also be tempted to borrow more than you need just because the bank says that you can.
Another possible option is a zero-percent credit card, but you need to be careful about using it. For instance, the zero-percent interest rate may just be an incentive for you to switch cards. At the end of a certain period of time, say 12 months, you'll be back to paying sky-high interest rates. Also, you will only be able to hang onto the low introductory rate as long as you pay your bill on time. If you're late with a single payment, you'll end up paying a much higher interest rate. Additional fees and charges may cause the cost of the credit to soar. In addition, if you end up paying the bare minimum on your credit cards, it will be difficult for you to pay them off any time soon.
What about the conventional debt consolidation loan?
Such a loan can be quite convenient and a real time-saver, enabling you to pay your debt with one single payment each month. You may find that you can get the best rate at a local credit union rather than at a bank. By doing some comparison shopping, you may be able to save quite a bit of money in the long run.
Rebuild.org brings you the latest news headlines related to Debt Consolidation:
- Banks Raise Credit Card Debt Costs Ahead Of Reform Deadline
Banks Take Opportunity To Increase Credit Card Profits Before It’s Too Late Credit card reform may be in the sights of consumers, but for the time being, more credit card companies are taking their chances to increase profits while they still can. In the previous month of May, credit card losses were at a record level [...]
[July 2nd, 2009] - 3 Reminders That Credit Card Debt Consolidation Loans Are Only The Beginning
As credit card debt problems continue to be a growing issue in this tough economy, more and more consumers are looking for possible debt solutions. And although credit card debt consolidation loans are nothing new, individuals need to remember that these consolidation loans are not a quick fix solution to get out of debt by [...]
[June 26th, 2009] - More Credit Card Companies Willing To Play Ball And Negotiate Deals
Credit Card Debts Settled For Much Lower Balances In a recent New York Times article, one consumer shared his successful story of settling his existing account balance for half of what he owed. Interestingly, it was the creditor who made the first move, and called to request a payment on the already delinquent account. When the [...]
[June 17th, 2009] - Credit Card Debt Delinquencies Increase In First Quarter 2009
Cardholders Continue to Struggle With Credit Card Debt Earlier this month, a recent article of ours pointed out that consumer credit debts had dropped by a record $11.1 billion in March 2009. But the latest report from TransUnion, a credit reporting agency, showed that credit card debt delinquencies increased almost 11% in the first quarter of [...]
[June 12th, 2009] - College Students Pay Dearly For Credit Card Debt Troubles
Many Students Still Confirm Credit Card Debt Stereotypes Unmanageable credit card debt has always been a stereotype for college students as much as late night partying and other crazy events. Unfortunately, even after all the lectures and horror stories, it seems that many students are still living up to this stereotype of multiple credit cards and [...]
[June 4th, 2009]
Recent articles related to Debt Consolidation:
- Top Four Techniques to Get Credit Card Debt Under Control
As economists worry about the potential impact of a stalled economy on Americans’ salaries, average credit card interest rates continue to rise. According to some financial industry analysts, many American households could face a cash crisis if they don’t focus on reducing the amount they pay on interest each month. Personal finance experts from across [...]
[June 8th, 2009] - How to Choose Between Fee and Free Debt Relief Solutions
For many of us, it takes a major life event to force us to wake up from our financial coma and to get out of debt. Fights, illnesses, and divorces often act as turning points in our lives that challenge us to step up and face our fears about money. Each of us arrives at [...]
[May 28th, 2009] - Top Three Reasons Your Credit Card Company Wants You to Join a Debt Consolidation Program
Long-time credit card industry analysts have watched the business of lending turn itself upside down since the inauguration of President Obama. Consumer frustration over high credit card rates and fees have combined with lawmakers’ willingness to tap into populist financial ideas. As a result, unprecedented credit card regulations have been slated to take effect in [...]
[May 26th, 2009] - Debt Settlement Program: 5 Reasons to Be Wary
Debt consolidation. Debt settlement. Debt elimination. Consumers on the hunt for relief from mounting credit card bills are often confused by these programs. But it’s critical to know the difference, as there are serious financial implications associated with each. Here’s a quick rundown of what to be on the lookout for when soliciting assistance from [...]
[May 8th, 2009] - How to Get Out of Debt: Debt Relief from 3 Unlikely Sources
The credit crunch has many consumers clamoring for assistance. According to CreditCards.com, credit card debt reached $972.73 billion in 2008, including both general purpose and private label credit cards. And finding relief from high APRs and minimum monthly payments is tougher than you might think. However, the good news is that it is possible to escape [...]
[May 1st, 2009]
