Debt Consolidation Facts: Learn Them All Before Taking the Plunge
Debt consolidation facts are those that we try to weed out from fiction. What is it anyway? Consolidation just means bundling all the loans together into one and getting a new rate of interest that is fixed. This may be an option if one is getting close to a crisis.
How does one know if the credit crisis is on the horizon? All the credit cards are maxed out although the payments may still be on time. However these payments take up all the disposable income. Now is the time to study all the available data and roll up all those debts into one loan that is easier to manage.
But before we do that, I know some of you are getting hurt. It is not easy to remember everything we have to do. There is the job to go to that consumes eight hours every day. Then we have to look after the home and family. So all of us really need reminders from time to time. Not only that for there are four steps in the learning process to go through before we can follow instructions.
Unless we get a coach or a guru which is expensive. Besides, the concept of "who do we listen to" is very important. It has to be someone who has been there and gone through the stages and has gotten the results we are aiming for. And it has to be someone with a heart and not just out to get our money. And these days, it is difficult to know for sure because it seems like every Tom, Dick, and Harry can say he can help. So that leaves us the only other thing we can employ and that is through repetitions.
So to do my good deed, I am going to offer a five-day mini course to remind you of some specific things that will help manage the debt. You can be reminded exactly what to do from day to day and year to year on things we sorely need so we do not forget some essentials.
As a bonus, after the five-day mini course, you will get alerts and tips just in case there are new things you need to know. The most you will get is once a week and you can always unsubscribe anytime. Those who are already subscribed to the alert and tips can unsubscribe so they will not receive it twice or delete one each time. There will be an unsubscribe button at the end of every mail you receive.
One of the debt consolidation facts is that with this fixed rate, one can even get a repayment schedule that is longer although this is not advisable. Unless one is a masochist, I will not recommend this for who wants to lengthen the time of pain?
The wise thing to do is to make that extra monthly savings from the lower rate of interest work for you. Why would you work hard for your money? Instead let the money work hard for you. So take that monthly savings and pay off the credit card debt more quickly.
Where do you get this type of loan? Well financial institutions and banks are more than willing to do this to help people get on track. They know one's financial health could be sick and needs a cure. This knowledge will help one get back on the road to financial freedom. You may be able to get more information if you Click Here!
Here are the debt consolidation facts you can't live without if you're looking to consolidate the student loans. You can apply online at http://www.loanconsolidation.ed.gov. You can also do this via a toll-free telephone number. It's 1-800-557-7392. Before you apply, study all the angles.
For instance, the interest rates for student loans is set annually on July 1. Think first of where the interest rates are going. Are they generally falling down? If they are, then wait till July 1 before making a move as the interest rate then may even be lower.
Or if you can't wait till then, why not look at the 91-day treasury bill rate on May 1. Why? Because this rate is the same rate they charge the student loan rate. You can go over to http://www.publicdebt.treas.gov/servlet/OFBills to see the rate. They seem to have changed this but http://www.treasurydirect.gov/forms/savpart306.pdf gives the interest computations.
Do the math. The July 1 rate for Stafford Loans is usually the same as the t-bill rates in May plus 2.3% while the PLUS rate for loans is equivalent to the t-bill rates in May plus 3.1%. After calculating this and you find out the July rate has a chance to go down, wait till then before consolidating.
One of the debt consolidation facts on this type of loan is that the lender pays all the creditors and lump together all these debts into one loan at fixed rate and one payment. Now doesn't that make you feel comfortable already? But there's a caveat. Don't fall into the same trap again so close all those credit cards and lines of credit so you will not get tempted.