Get Out Of Debt - Top 5 Reasons You Need To Consolidate Loans
By Dion Semeniuk
Today, the number of people filing for bankruptcy has skyrocketed by 44% in just
the past 10 years with numbers continuing to climb. Consumer credit has reached
an all-timehigh, leaving more and more people in debt. While we need consumer
spending to maintain and grow the economy, when money and credit are misused,
Unfortunately, people are notorious for abusing money and before they know it,
they are in completely over their heads with no way to get out – or so they
think. In truth, there are options for getting out of debt, staying out of debt,
and rebuilding damaged credit. Below, you will find the top five reasons for
taking back control of your life with a debt consolidation loan or student
Keeping your Home
Considering that the average cost of a home today is close to $175,000, it is
easy to see why mortgages can zap a large part of a person’s income. However,
with interest rates now at a serious low and being a homeowner an excellent
investment, this is the time to save your home. If you find that you are being
swallowed up by bills and your mortgage is getting further and further behind, a
debt consolidation loan could not only get you caught up on payments but also
make owning your home more manageable and enjoyable.
Going to School
Unfortunately, there are people all across the country that would love to go to
school or go back to school to complete a degree. However, the high cost
associated with tuition, books, and supplies makes it impossible for many people
due to the high level of bills. In fact, with so many people working two jobs
just to stay above water financially, trying to fit in the cost of the classroom
is simply too difficult.
However, by choosing a debt consolidation loan or student consolidation loan,
you can get all of your outstanding debt under control. With this type of loan,
everything is wrapped into one loan at a great interest rate and with payment
schedules, you can afford. With that, your bills would be far more management,
allowing you to earn the coveted degree that will only push you further into
Credit Card Interest Rates
Sadly, many credit card companies lure people into having a credit card,
offering great credit limits and convenience. However, these same companies are
charging anywhere between 20% to 25% interest on a single credit card. Multiple
that by several credit cards and there is no way the individual could pay off
the debt. Today, the average balance on a credit card is $9,000 and most people
have five or more cards.
Unfortunately, people do not realize that if they had even a $1,000 balance and
were to pay the minimum payment with a high interest rate, they would be paying
on that one credit card debt for 20 years or more before finally getting it paid
off, just because of the interest. That means they are spending thousands and
thousands of dollars just for the “privilege” to carry around a credit card. By
securing a debt consolidation loan, you could have all outstanding credit card
debt rolled into one loan with a low interest rate. Therefore, the debt would be
paid off within a few years, saving tremendous money.
Because so many people are struggling with debt versus income, debt
consolidation loans and student consolidation loans are booming. With this type
of service, you also have the opportunity to meet one-on-one with a professional
counselor that will review your debt versus income ratio and set you up on a
realistic payment plan that works specifically for you.
An agency that specializes in debt consolidation loans or student consolidation
loans is structured to work directly with your debtors, working out lower
interest rates and better repayment schedules. With that, you can keep a
schedule that would allow you to pay off all your debt in 30 to 60 months as
opposed to 20 to 30 years! The bottom line is that depending on the level of
your debt, you would easily save anywhere from $1,000 to hundreds of thousands
of dollars in interest, processing fees, and late fees.
When you go to buy a home, car, get a student loan, or go into business for
yourself, the first thing that will happen is a report will be run on our credit
history. This report will show potential debtors how much money you own, if you
pay your bills on time, if you have ever had a judgment against you or filed for
bankruptcy, and everything possible about spending and paying habits. If you are
way in over your head from a financial perspective, chances are you are
overextended with credit, have missed some payments, made late payments, and
overall have a fair or poor credit report history.
That means if you wanted to buy a home or car, you would be denied. Maintaining
good credit is crucial and something everyone should take seriously. A debt
consolidation loan would help you get back on track so your history report is
favorable, not damaging. With that, if you want to invest in a home when you get
married, or buy a larger car when little ones begin arriving, you could.
Therefore, a debt consolidation loan can help you with future buying.
About the Author: Dion Semeniuk has researched various ways to consolidate loans
and the best resources to do so. To learn more on why to consolidate you loans,