What is Debt Consolidation?

Debt consolidation reduces your monthly balance by combining all of your credit card bills and loans into one single location. This will lower your interest rate and your monthly payments. However, it will not reduce your outstanding debt. Nevertheless, debt consolidation is still an extremely appealing option for debtors with considerable debt since it can stretch the payment period over a longer time frame.
Here is a scenario so you would better understand debt consolidation. For example, you have two credit cards and one personal loan which you are regularly paying per month. For the first credit card, you are paying $100 per month with a balance of $1,000. For the second credit card, your monthly balance is $50 and your outstanding balance is also $1,000. Your personal loan’s monthly balance is $80 and has an outstanding balance of $2,000. Your total monthly payment if lumped together is $230 and the total outstanding balance is $4,000.

From the above figures, you will see that the total monthly payment is difficult to handle especially for those who are struggling to make ends meet. If the total payment per month is reduced, it may possibly permit you to make extra payments. It will then reduce your debt a lot faster. This is where debt consolidation becomes helpful. Your credit card bills and loans will be lumped together into a single loan with a much lower interest rate. This will is an effective debt reduction technique since it lowers the monthly payment fee. The amount of time to pay off the loan will also be shorter. In five to ten years you might be able to completely pay off your debts. In the example above, the total amount is $4,000 with 11.5% interest rate which is payable over four years. The total monthly payment is $104.35 which means you save $125.25.

A lot of banks offer debt consolidation loans. In spite of this, not everyone is eligible for debt consolidation. Your eligibility depends on the trust that your bank places on you. This is many individuals prefer to take out their home equity loans to consolidate their debt. In general, if your credit rating is low or if it has been damaged greatly, it would be hard to be approved for a loan. If in case you have been approved for a loan, the interest rate would be unreasonable. An approach to getting a lower interest rate is to submit your home mortgage as collateral for payment of your loan. Bear in mind that you are putting your property at risk since they can take it if you do not pay your loan.

If you like this article, you can also check out this debt consolidation article.…

Debt Consolidation Loans Bad Credit

To consolidate is to bring together or to make solid, to strengthen. Many times people take loans to meet urgent demands and are unable to pay them within the time limit. This becomes an added responsibility as not only is it a tension, but it also keeps increasing the sum amount to be paid back. As one becomes a heavy debtor, not only does he lose faith in oneself but also faces a loss of reputation in society. To bring back your lost confidence, the option of debit consolidation loans bad credit is the best.
This loan, which is of two types; secured and unsecured, is the easiest way out of such a nightmare. You can borrow money within high ranges, as the lender realizes that your debts can know no bounds. Not only that, you also have sufficient time to repay this money, starting from 6 months to 25 years. You are also given an extension if you apply for one, which only comes with an added rate of interest; though the time period provided to repay, is mostly sufficient.

This debt consolidation loans with bad credit has its own advantages and disadvantages. In secured type, the interest rate is lesser than unsecured type. But, you must to mortgage some land holdings with the lender as security. You must make sure that the value of the land must be in tune with the total amount borrowed. You must make sure to repay your loan within the time limit; otherwise your land holdings will be ceased.

In unsecured fund type, you need not mortgage any land holdings with the lender as security. Therefore, you must have an adequately paying job to repay you loan with no credit check in time. The interest rate is higher than secured type.

You can also apply online to receive these loans, by simply providing your credentials online, which on confirmation, will entitle you to the loan.…

Achieve Debt Relief: Check Out These Programs

With the recession happening, it is no big question why more and more people are getting into debt. In fact, a recent survey showed that more than 70% of American households are in debt and that this is because these families actually spend more than they earn. With the use of credit cards, it is now difficult for families to budget and actually get a real knowledge of how much they should only spend minus all the bills and utilities.
Are you in debt? Then you are probably wondering how you could get out of debt or at the very least, achieve debt relief. First off, what is debt relief? There is no one big definition of debt relief, but it is basically a series of programs or ways that can help you slow down debt or programs that will allow you to pay only a partial amount of the debt and have the debt considered as fully paid. If you want to learn more, then here are some of the most popular debt relief programs that you can avail of:

Debt Consolidation

Debt consolidation is definitely for the person who owes money to different companies or organizations. For example, you have credit card debts and student debts with varying interest rates. What debt consolidation does is combine these debts giving you the ease of paying these debts plus the reduced interest rate since you’ll just paying one debt. The great thing about debt consolidation as well is that you are sort of starting with a clean slate, meaning your late payment penalty fees and other charges will probably be taken out of the equation. You will also be given a longer period to fulfill the debt so giving you more time to gather resources.

Debt Settlement

debtDebt settlement is also another viable option. With debt settlement, you basically recognize and acknowledge that you can barely pay off your debt. It might be a bit embarrassing but this is definitely better than having to file for bankruptcy. Debt settlement is when you and the company come into agreement as to how much of the debt you’ll have to pay in order to be considered free of debt. Most companies reduce debt by 40-60% so before your debt becomes a major issue, meet with your company now and try to compromise.

Debt Management

Companies however are not that confident that you can really pay your debts on time and faithfully so before they go into an agreement or compromise, they will want to bring a third-party organization or person into the scene. In debt management, a credit counseling agency will analyze your financial situation and they will be the one to negotiate with your debtors. You will be sending your payments to the credit counseling agency who will in turn give the payments to your debtors.

Better take one of these three debt relief programs now. Don’t wait for the worst alternative and face having to file for bankruptcy.…

Save money by making your birthday party invitations

When your planning a birthday party the invitations are one of the most important parts is the invitation. Birthday party invitations are the first thing your guests will see, and the first thing that will give them clues to how fun your party is going to be. Personalized birthday party invitations can be very expensive. Making your own birthday party invitations can be a great way to save money and to make them very personalized. Even if you are craft challenged it is easy to make and design your own birthday party invitations.

For easy birthday party invitations all you need is construction paper, stickers, and a gel pen. Cut the construction paper to the size that you want the invitation to be folded in half. You can make your invitation open either on the side or from the top. You can then take the stickers to spell out the words on the front of the card, and any pictures that you want on the front. Then once you open the card you use a pretty colored gel pen to write all the pertinent information. Be sure to include the birthday persons name, the date and time of the party, where the party is being held, and anything else your guests need to know. This is perfect for the basic birthday party invitation. Once you have this card you can add to it as much as you wish. You can add glitter, puffy paints, drawings, and cutouts. Its all up to you how elaborate you want to make it.

If you are having beach or survivor themed party here is another creative invitation idea. First you get a piece of construction paper and you slightly burn the edges. Then write all the pertinent party information on the paper. Roll up the paper tightly and tie it with a ribbon. The paper should be a long tube, then you slip in inside a empty glass soda bottle. You can seal the bottle with melting wax, or if you don’t have it you can use a melted hot glue. You then deliver your invitations to your guests, and they take off the wax and get the message out. Giving out message in a bottle invitations will be a great start to your party. Your guests will all know that if you put that much time and thought into the invitations that the party is going to be great!

Remember all you have to do is think about your party theme, and you can come up with a perfect invitation. Invitations that you design are perfect because they have your personal touch to them. Your friends and family will love receiving your personalized birthday party invitations. Even if you aren’t that crafty your invitations will turn out great because they will be personal. Have fun designing.…