By Dion Semeniuk
GET OUT OF DEBT - TOP FIVE REASONS YOU NEED TO CONSOLIDATE LOANS
Today, the number of people filing for bankruptcy hasskyrocketed by 44% in just the past 10 years with numberscontinuing to climb. Consumer credit has reached an all-timehigh, leaving more and more people in debt. While we needconsumer spending to maintain and grow the economy, when moneyand credit are misused, disaster strikes.
Unfortunately, people are notorious for abusing money and beforethey know it, they are in completely over their heads with noway to get out – or so they think. In truth, there are optionsfor getting out of debt, staying out of debt, and rebuildingdamaged credit. Below, you will find the top five reasons fortaking back control of your life with a debt consolidation loanor student consolidation loan.
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 partof a person’s income. However, with interest rates now at aserious low and being a homeowner an excellent investment, thisis the time to save your home. If you find that you are beingswallowed up by bills and your mortgage is getting further andfurther behind, a debt consolidation loan could not only get youcaught up on payments but also make owning your home moremanageable and enjoyable.
Going to School
Unfortunately, there are people all across the country thatwould love to go to school or go back to school to complete adegree. However, the high cost associated with tuition, books,and supplies makes it impossible for many people due to the highlevel of bills. In fact, with so many people working two jobsjust to stay above water financially, trying to fit in the costof the classroom is simply too difficult.
However, by choosing a debt consolidation loan or studentconsolidation loan, you can get all of your outstanding debtunder control. With this type of loan, everything is wrappedinto one loan at a great interest rate and with paymentschedules, you can afford. With that, your bills would be farmore management, allowing you to earn the coveted degree thatwill only push you further into success.
Credit Card Interest Rates
Sadly, many credit card companies lure people into having acredit 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 byseveral credit cards and there is no way the individual couldpay 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 highinterest rate, they would be paying on that one credit card debtfor 20 years or more before finally getting it paid off, justbecause of the interest. That means they are spending thousandsand thousands of dollars just for the “privilege” to carryaround a credit card. By securing a debt consolidation loan, youcould have all outstanding credit card debt rolled into one loanwith a low interest rate. Therefore, the debt would be paid offwithin a few years, saving tremendous money.
Controlling Debt
Because so many people are struggling with debt versus income,debt consolidation loans and student consolidation loans arebooming. With this type of service, you also have theopportunity to meet one-on-one with a professional counselorthat will review your debt versus income ratio and set you up ona realistic payment plan that works specifically for you.
An agency that specializes in debt consolidation loans orstudent consolidation loans is structured to work directly withyour debtors, working out lower interest rates and betterrepayment schedules. With that, you can keep a schedule thatwould allow you to pay off all your debt in 30 to 60 months asopposed to 20 to 30 years! The bottom line is that depending onthe 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.
Future Buying
When you go to buy a home, car, get a student loan, or go intobusiness for yourself, the first thing that will happen is areport will be run on our credit history. This report will showpotential debtors how much money you own, if you pay your billson time, if you have ever had a judgment against you or filedfor bankruptcy, and everything possible about spending andpaying habits. If you are way in over your head from a financialperspective, chances are you are overextended with credit, havemissed some payments, made late payments, and overall have afair or poor credit report history.
That means if you wanted to buy a home or car, you would bedenied. Maintaining good credit is crucial and somethingeveryone should take seriously. A debt consolidation loan wouldhelp you get back on track so your history report is favorable,not damaging. With that, if you want to invest in a home whenyou get married, or buy a larger car when little ones beginarriving, you could. Therefore, a debt consolidation loan canhelp you with future buying
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