Debt Reduction Tactics And Home Finance Ideas

Low Interest Debt Consolidation: Can That Really Attractive Loan

By Talbert Williams

The main purpose of taking out a debt consolidation loan for most
people is to save a few more dollars and simultaneously reduce the
amount of work and money required to pay back creditors, so they
can become debt free as quickly as possible.

For most people who fall into this category, finding a debt consolidation
loan early on is an excellent idea. It will save you the pile of interest
and grief in the long run.

Debt consolidation loans should be used very cautiously, so that one
gets to squeeze out as much benefit from it as possible. One must not
misuse the debt consolidation loan in any way because it may drag
him more into the burden of debt instead of making him debt free.

Many financial organizations and banks do advertisements with low
interest rates and attractive debt consolidation packages, which
prompts many people to irrationally decide to take out a debt
consolidation loan.

Consumers can even end up worse off in certain situations if they
needlessly take out a debt consolidation loan from a company that
has sub-optimal interest rates.

What are some of the negative points of debt consolidation loans?
Taking out a debt consolidation loan reduces the total number of
credit bills into a single monthly payment at a negotiated interest
rate. It might seem hard to believe that there are any major
negatives associated with a consolidation loan, but there are.

For instance, when debtors who have the means to pay off debts
decide to delay them by taking out debt consolidation loans, they
end up paying more money on the long run because of interest rates.
In addition to this, many people who take out a debt consolidation
loan will begin to feel like they finally have no debt burden. As such,
they will return to their old spending habits, accruing debt and
reducing the amount of money they have available to pay off their
consolidation loan and other secured debts.

If you are in this situation, you should heed other consolidator's
pitfalls. You should carefully decide when you want to take out a
debt consolidation loan--and from there, you should be even
more careful when you decide where to take your consolidation
loan.

Talbert Williams offers free help and referals to help
consolidate and eliminate your debt at: www.debt-free-america.com

Keywords: debt,finance,family,debt relief,debt reduction,credit,credit repair,credt cards

About the AuthorTalbert Williams, Portland debtleads@debt-free-america.com
More Details about www.debt-free-america.com here.

posted by Bryon Zirker @ 2:12 PM 0 comments

Why You Should Pay Your Credit Card Debt Immediately

Why You Should Pay Your Credit Card Debt Immediately
by: Beth Derkowitz



With everyone spending more than they save, it’s no wonder that credit card debt is at an all time high. But just because everyone else is in trouble doesn’t make it a non-issue. Credit card debt not only ruins your credit score, but it can also hurt your future and your sense of security as well.

The precious credit score

The newest number that everyone is talking about is their credit score. With a good credit score, you can get better credit card offers, better interest rates for houses and cars, and you can get bigger loans than others with lower credit scores. And the truth is that most people don’t know what their credit score is.

When you carry high balances on your credit cards, these balances are reported back to the credit reporting agencies that in turn make adjustments to your credit score. If you have large balances, it looks like you’re living beyond your means and thus you’re not a good candidate for future loans and your score is lowered.
If you have low balances (less than 50% of the limit) and pay your bills on time, you will raise your credit score.

Making larger investments

If you dream of owning a home or a new car, you need to pay down that credit card debt. In order to get these kinds of large loans, banks need to know that you are responsible with money and will be able to pay off your loan as you promise. By having credit card debt, it seems as though you aren’t able to live on what you can afford and thus will probably not be reliable with paying off your loan.

And if you do get the loan, the interest rate is much higher for the borrower that has credit card debt. In case you can’t pay off the loan, the bank will want to make more money off you when you do make payments.

Your sense of security

No one needs the added stress of whether or not they can afford to pay the minimum balance on their credit card. And with a little planning a discipline, credit card debt can be managed and eliminated.

You can start with cutting up those credit cards and start using ‘real’ money to make way for the future that you deserve—houses, cars, and a good night’s sleep.

About The Author

Beth Derkowitz recommends Find Credit Cards for finding a BankFIRST credit card that’s tailored to suit your financial needs. See http://www.findcreditcards.org/issuer/bankfirst.php for more information.
bethderkowitz@gmail.com

posted by Bryon Zirker @ 4:34 PM 0 comments