On top of that, Adriana Spears, a financial counsellor, asserts that there is a big chance that the completion of payment can improve the credit score of a person by 40% to 60%. And it doesn't really matter how much money they took out from such ... To ... Unsecured Debts Makes Loans For People With Bad Credit Possible
Dan Kornelis, Forsyth County NC Housing Director and New Century IDA Working Group Chair, shares tips on debt consolidation, and the challenges faced by new homeowners
http://cinemasnuevaera.com The Good and Bad of Debt Consolidation
It is a good thing that bad debts are around. They help individuals who have gone through a negative credit history get past their mistakes and have another shot in life. However, these can go awry as well. This is where a bad debt consolidation can prove to be mighty helpful.
There are two kinds of loans for bad debt. Secured loans are those that require a form of security in the form of a property such as a house, car or a business. These usually come with a larger amount of money that can be loaned hand in hand with a lower interest rate. Unsecured loans, on the other hand, do not need any collateral, but there are strict restrictions on the loan details such as the amount and the payback period.
Although these are generally beneficial to help individuals get beyond their previous financial mishaps, it is easy to fall into the trap of debt cycle. Having multiple debts can be painful and hard to handle. This is even greater when it comes to bad debt considering the conditions they entail.
A popular solution to the problem comes in the form of bad debt consolidation. This is a way to get all of one's debts paid and pay for a single loan. Basically, one takes a consolidation loan to pay off all the current debts. The end goal is a single loan to pay for each month.
This consolidation loan is the closest thing one can get to actually getting rid of one's bad debts. Since paying off all of them with cold cash is possible, being able to finish them off and have a single loan instead is good enough.
More so, one pays less each month with a consolidated loan. As a result, there is a greater budget that can be allotted for the bills and other necessities at home. There is also no need to take up more credit for the basic essentials and supply in the house since one can already afford to buy them with extra money from one's income.
Generally, a consolidation loan is beneficial. However, it is important that one considers the consequences of having one before actually applying for it. If not done smartly, a consolidation loan can end up quite badly and may result to further financial problems. Furthermore, there is the emphasis on being responsible and making timely payments to avoid unnecessary dues.
Aside from bad debt consolidation loans, there are also other options one can take note of such as a debt relief program. A consolidation loan though is quite effective in driving those creditors away and is actually easy to acquire. Find More Bad Debt Consolidation: Good Or Bad Articles
Question by : Any recommendations for a good debt consolidation company or bad ones to look out for? Best answer for Any recommendations for a good debt consolidation company or bad ones to look out for?:
Answer by louisrichardk
I have been using a great company. Give them a call. The staff is so helpful and pleasant. it's called Preferred Financial Services. (1-866-992-7400). They have paid off 2 of my debts already and I'm very pleased with them. Make a list of all the questions before you call and ask them what your concerns are. Ask for Jason Ex-260 he is super. Tell him Louis told you about them. They like to get recommended. good luck.
Answer by Jeanne R
What keeps most people in debt is the fact that they keep spending more money than they make. They look at the "monthly payments" instead of the total debt loan that they are carrying. People need to stop spending now and concentrate on becoming debt free. Please do not consolidate or use a debt reduction company . It is not free, they will lower your payments by increasing the length of time until you are debt free, and you will take a hit on your credit score. Or they negotiate your debt down after telling you not to pay for awhile adding another hit to your credit score. Student loans are the only debt that can garnish your wages for non payment without taking you to court first. Just list them out on a piece of paper or a spreadsheet and follow the plan. If you work the plan, the plan will work for you. A. Have a garage sale and sell anything that you no longer need or want. B.Get a temporary part time job, if you have one, get another. Here is a plan that can help you. If you work the plan, the plan will work for you: 1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an "emergency fund" category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don't even have to worry about it. You must cut your spending and live on less than you make. 2.First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on. 3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example: To start : Debt #1 (highest interest): minimum payment+ extra payment Debt #2 (middle interest): minimum payment Debt #3(lowest interest): minimum payment Debt #1: paid off Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment Debt #3: minimum payment Debt #1: paid off Debt #2: paid off Debt #3:Minimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment. That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have. 4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty. 5a. When you have your emergency fund in place, add a category for "fun" to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life. 5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire. 5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest. You can do it and it isn't as hard as you think. Just follow the plan
Answer by Richard B
If you live in the UK the main ones are the CCCS and the National Debtline. For IVAs your best option is IVA Advice.org.uk.
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