Debt Consolidation Online - Is It Smart To Consolidate Your
Debt?
With a multitude of bills piling up, debt consolidation can appear to
be an easy way out. Claims of reduced rates and one payment convenience
can seduce just about anyone. But before you commit to such a plan,
make sure that you have weighed the pros and cons to make certain that you
will actually save money in the end.
Top Recommended Companies To Refinance With:
(updated ):
Act Now! Lower your monthly mortgage payment!
- Competitive rates and no hidden fees
- Bad Credit OK
- New Purchases, Home Equity & Refinance
- One dedicated mortgage banker from first call to closing
- Quick Application with worthwhile results
If you are looking for a mortgage loan but have "less than perfect credit" this company has options for people with credit problems. Complete a short form and get one dedicated mortgage banker from first call to closing with a simple, straightforward process.
Mortgage rates are still low. Refinance & Lower Your Payment!
- Get Started on a Lower Payment Now!
- America's #1 Online Lender
- Save More and Spend Less!
- No Obligation and Free Expert Advice Another Great "bad-credit" Mortgage Company! QuickenLoans is also a competitive mortgage company for people with all types of credit including poor credit. Refinance or get new mortgage offers from this reputable Web based mortgage lender.
Helpful Loan Tips:
- Apply with more than one company to compare offers.
- Study your options before committing to a debt program.
- Cut out small luxuries to pay down debt at the beginning of your debt reduction program.
Is Debt Consolidation Always A Good Deal?
Debt consolidation rolls your short term debt, such as credit cards
accounts or bills, into one loan. The idea is to reduce your interest
payments, helping your monthly payments go farther and eliminate your debt
faster. But you have to be careful, because a lower monthly payment or
interest rate doesn't always mean you are saving money.
Time is your enemy with debt consolidation loans. The longer your loan
period, the more you will pay in interest charges. For example, $20,000
in credit card debt at 15% for 5 years will cost $8,547.91 in interest.
Consolidate that debt into a 30 year home equity loan at 6% and interest charges soar to $23,167.72.
Other Reasons To Consolidate Debt
But saving money isn't the only reason to consolidate debt. Reducing
your monthly payments through consolidation can help you get through a
job loss or health crisis. Taking a look at the previous example, the
monthly payment on the credit card debt at 15% would be $475.80. Convert
that to a 30 year loan, and the monthly payment drops to $119.91 – a
difference of $355.89.
The Elements Of A Good Debt Consolidation Loan
To see a savings with a debt consolidation loan, make sure you find a
low interest, short term loan. Home equity loans with 5 to 15 year terms
offer reasonable rates with few fees. But if you only have a few
thousand in debt, opening a new credit card account with 0% on transfers
would be a better option. Before signing with any lender though, make sure
you do some comparison shopping to ensure you are getting the best
available financing.
With more room in your budget, work to make additional principal
payments to save on future interest charges. You will also want to check out
your credit report and possibly close some accounts to improve your
credit score. Just remember to keep your longest held accounts open since
a long credit record improves your score.
Recommended Debt
Consolidation Companies:
Top Recommended Companies To Refinance With:
(updated ):
Act Now! Lower your monthly mortgage payment!
- Competitive rates and no hidden fees
- Bad Credit OK
- New Purchases, Home Equity & Refinance
- One dedicated mortgage banker from first call to closing
- Quick Application with worthwhile results
If you are looking for a mortgage loan but have "less than perfect credit" this company has options for people with credit problems. Complete a short form and get one dedicated mortgage banker from first call to closing with a simple, straightforward process.
Mortgage rates are still low. Refinance & Lower Your Payment!
- Get Started on a Lower Payment Now!
- America's #1 Online Lender
- Save More and Spend Less!
- No Obligation and Free Expert Advice Another Great "bad-credit" Mortgage Company! QuickenLoans is also a competitive mortgage company for people with all types of credit including poor credit. Refinance or get new mortgage offers from this reputable Web based mortgage lender.
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