Thursday, January 19th, 2012 at
5:23 pm
3 Ways to Consolidate Your Debt
If you want to consolidate your credit card accounts and other debt and you have a history of bad credit, there are presently many options online to help you do so. Here are three of the services that you can find online.
First is to obtain an equity loan. This loan is ideal for debt consolidation for as long as you have a home that you can use
the equity or the maximum appraised value to obtain the money that you need.
Second is to apply for an unsecured loan. This type of loan does not require any collateral and does not have plenty of requirements. However, because you have a bad credit, expect this loan to have higher interest fees and not so flexible payment terms.
Third is not to take any form of loan but look for companies offering their financial
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services to assist you in managing your debt without the need to use a loan. Oftentimes, these companies will request for a fee to help you negotiate to your creditors to lower your interest rates and monthly dues. This technique is usually effective in bringing down or completely getting rid of your debt.
There are still many other ways to find a service that will help you manage your debt. Whatever choice you make, just make sure that the company you entrust your credit with will truly help you. There are many companies that will just go after your money and scam you to spend more. These companies will put you in a much worse debt situation so you have to be very careful. Thus, look for legit companies before making your choice.
Debt consolidation is a good solution that can help you manage your bills to be able to pay them on time. You just need to carefully look for the right service and choose the best deal before finalizing your decision to consolidate your debt.
Wednesday, January 18th, 2012 at
5:33 pm
Bad Credit Loans from Credit Unions
Bad credit loans provided by credit unions help people who want to fix the poor credit score reflected on their credit report. This is because a good credit report makes everybody’s life easier and more convenient. As such, almost everyone finds a way to fix their credit situation and go back to their normal lives.
Credit unions are financial companies that exist to provide financial assistance to individuals and businesses. Their main goal is to help out and not to gain profit. With the bad credit loans and all other services they provide, they can assist many people in different ways.
Based on several studies conducted by different organizations, credit unions have always been helping people who are making an effort to improve their financial records. And, the credit unions are giving additional assistance and bad credit loans to those with lower incomes by offering certain programs.
Every program has its own specifications and requirements. Each was designed and thoroughly thought out in order to ensure that it fits the needs of the clients. But, there are requirements that a
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client must meet. These qualifications are just fair because the loans provided by credit unions to individuals with bad credit have lower interest rates compared to other sources of the same loan. Moreover, credit unions plan loan repayment to provide the individual a chance to pay and balance the money they have.
Those who are interested in obtaining a bad credit loan from a credit union should first try to check every program that the different credit unions provide. This is to allow them to check and compare the loans that will be best suitable for their needs. There are many resources online that provides the list of credit unions who give out different forms of bad credit loans. These loans may be available in specific forms such as Home Equity Loans, Personal Loans, Car Loans and a lot more.
Tuesday, December 20th, 2011 at
6:51 pm
The Christmas season builds up the desire of many people to give their family members the gifts that they want and allow them to enjoy the holidays. But, this requires extra funds. While this is not difficult for those who have good credit standing, those with bad ratings do not have so many options to turn to in this time of great want. Good thing that there are already many lending options today for those with bad credit especially in the form of Christmas loans.
A Christmas loan can be availed by anybody without the need to go through a credit check. This is because the lender of these loans does not consider the credit score of the loan applicant. What they look at is the current income of the
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borrower. If they see that the borrower has the potential to pay the loan using the salary he is currently earning, they will approve the loan even if the applicant has low credit ratings. The lender can even release the money in the quickest
possible time which makes it very convenient for early holiday preparations.
This type of loan can be availed for as long as the applicant meets certain requirements
like age and bank account. Since there are different lenders offering this loan, each one has their own terms and conditions. For this reason, it is essential for a borrower to carefully look at the many options before choosing their lender. The factors to consider are the affordability of terms and the amount of loan the lender provides to their borrowers. Also, the amount of interest must be taken into consideration because this determines the real cost of the loan.
Application of Christmas loans can be done online. A simple application must only be filled up completely and submitted to the lender. Once approved, the lender can release the money on the same day it is applied. Christmas loans are truly helpful for those who want extra cash for this very special season.
Monday, December 19th, 2011 at
11:14 pm
Reasons why Debt Negotiation is Difficult
With the bad economy, limited income opportunities and evaporated real estate equity, many people are having difficulties paying off their debts. An increasing number of families are forced to make a difficult choice of either paying their mortgage or their other debts like credit cards and medical bills. Because of this, it comes as no surprise that many people are holding on to the slightest hope that they can get out of their debt situation. The truth is having unsecured debts like credit cards will be very difficult to pay. Some still try debt negotiation, but oftentimes, it doesn’t work for everyone. Here are the reasons why:
1.) Unrealistic expectations. Most people seeking to pay their debts have the expectation that they can easily do it because they heard that their neighbors did. They easily assume that seeking the help of a lawyer will be the solution that they are looking for. But, most people who want to negotiate debts do not have the capacity to deal with the settlements that may be offered to them.
2.) Money is required to bargain settlements. Being unemployed and not having enough money to pay regular bills like rent, mortgage, transportation, food and other day to day necessities will make it very challenging to negotiate other bills because there is no remaining cash left to use for the negotiation.
3.) Unsecured debts. Usually, most people with serious debt challenges have plenty of unsecured debts. They do not only have one but more. This won’t work with debt negotiation. Enough cash flow is needed to make a negotiation or settle them. Otherwise, the process is bound to fail. It is not helpful to negotiate several debts and only end up having the debt creditors bring them to court.
4.) Debt negotiation takes time. Even with the representation of a lawyer, it is not impossible to get sued and have a court judgment in the middle of the negotiation. This happens all the time.
There are some successful people with debt negotiation. They are able to settle debts with creditors and pay their debts on time in a certain number of months and years. However, their credit rating is affected and the debts will not reflect as “fully paid.” Instead, it will only show as “settled.” Yet, this does not free them completely. More money is required and any forgiven debt may be taxed as income.
Saturday, April 9th, 2011 at
6:28 pm
A bad credit loan is a type of loan accorded to a borrower with poor credit standing. The reason for obtaining a bad credit history is usually a default in the loans of the individual. Most creditors do not approve loans made by people with poor credit because of the high possibility of default. However, if creditors have to lend money to these people, the interest rate charges are usually high.
Bad credit loans are of two types, secured and unsecured. Secured bad credit loan is the type of loan with collateral like a house or any other asset owned by the borrower. On the other hand, unsecured bad credit loan does not have any tangible collateral that is why it is not easily granted.
Obtaining an unsecured loan can be the only way to obtain a loan for people with bad credit standing. However, getting this type of loan can be a disadvantage. The drawback of getting a bad credit loan must be considered before applying for an unsecured credit loan. High interest rate that can aggravate the existing financial challenges of the borrower is the primary disadvantage of an unsecured credit loan. The average rate of interest for bad credit loans is 15 points higher than the premium loan value.
Another disadvantage of obtaining a bad credit loan is that the borrower can get trapped to a cycle of loans. Many people who get a high interest loan end up having difficulties paying for it that they tend to apply for another one. This cycle goes on and on until the loans and interest rate charges pile up and become difficult to pay.
In order to avoid getting a bad credit loan, explore some possible alternatives to borrow money. Friends and family members can help without the interest charges. Organizing one’s expenses to avoid unnecessary expenses may also become necessary. Of course, saving money must be on the top list of things to do in order to prevent loaning.
Bad credit loans can be avoided if a good credit standing is maintained. However, if there is no other choice left, it is best to look for the best loan from the many available loans provided by lenders. Look for lower interest rates and make a bigger down payment if possible to lighten the payment terms.
