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.…

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.…