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Debt Consolidation Loans - Debt Negotiation & Settlement Tactics - Consolidate Debt DIY - Debt Reduction & Elimination What is Consumer Debt Consolidation? Archive of Posts 1 2 3 Alternatives to Payday Loans Appear (March 13th, 2008) A credit union in Kansas city called Boeing Wichita Credit Union has recently launched a new program. Members of this credit union will be able to take out loans of up to 20% of their monthly income up to $500 dollars at an interest rate of 36 percent a year. This differs from payday loan companies who charge an annual interest rate of around 400 percent. Furthermore Witchita Credit Union isnt the only companing increasing new programs to combat the ugly payday loans industry. The Credit Union of America recently introduced a "second chance" loan program a few months ago. Members of the credit union who take on such a loan must take an online financial education class it developed with Consumer Credit Counseling. Also, the government run Federal Deposit Insurance Corp. (FDIC), created guidelines for banks who wish to create small-dollar, low interest loan programs. Things look up in the combat against the payday loans industry. Hopefully change spreads quickly so people all over the country can get help. Jason Stokes Posted In: Debt Consolidation News | Entire Article| Comments |

How to Negotiate Debt Obligations with Creditors (August 27th, 2007) Technical Tips for Successful Debt Negotiation i) Any settlements you achieve, make sure you get them in writing. Keep copies of all your communication with your creditors including letters, phone calls notes, etc for future reference. ii) Negotiate to settle debts with those creditors with the lowest balance first. Once those debts are fully paid off, negotiate debt with creditors with the next highest debt. Go from smaller debt levels to higher ones. Read this article on Debt Elimination to learn more about this Debt Snowball Elimination technique. iii) Create your monthly spending budget to show to your creditors so that they can understand your financial situation better. Read this article on Debt Reduction to learn more about evaluating your debt, creating a household budget and getting out of debt. iv) Don't ask the creditor what amounts they are willing to accept. Tell them how much you can afford to pay. Never offer to pay more than what you can afford. v) Many creditors are willing to accept a lump sum debt settlement for as low as 70% of the original amount. Rather than getting reduced monthly payments from you (who knows whether you will default on them or not?), they will want to take a one time reduced settlement. vi) Negotiate debt with the original creditor and not the debt collection agency. This means you have to be fast in reacting to debt collection calls. For example, if the original creditor calls you regarding payment, do not ignore them and wait. They may sell this debt off to a junk debt buyer and matters will get even worse. vii) Never over-stretch yourself in negotiating your debts. Tell the creditor what you CAN do, not what you CAN'T do! viii) Show the creditor your determination to take control of your financial life, pay off your debts and regain a good credit score again. Mental Tips for Successful Debt Negotiation i) If the creditor refuses to settle debts the first time, do not give up. Wait for 1 month and present the settlement again. As time passes by, the creditor may realize it is in their best interests to settle the debt with you. ii) Be specific about your debt reduction goals. Tell them specifically what you want to achieve (in this case you want to reduce your debts and clean up your credit score). If creditors do not understand your goals, they will not respond to your desires. iii) Present a win-win situation to your creditors. Tell them that if you negotiate a debt settlement, they will have to avoid going through the collection agencies and the courts. This settlement will also help you repair your credit score. This is a win-win situation for you both. Do NOT present a settlement where you are the winner and the creditor is the loser, you will not succeed at this. iv) Be polite when negotiating debt with creditors. This is because creditors come across lots of difficult and rude customers, you will be better off if you are polite and understanding. Posted In: Debt Consolidation Articles | Entire Article| Comments |

Fair Debt Collection Practices Act (FDCPA) - Consumer Credit Protection Act (CCPA) (August 17th, 2007) The Fair Debt Collection Practices Act (FDCPA) was initiated in 1978 as a statute of law under the Consumer Credit Protection Act (CCPA). It was voted as Law by the Congress to protect consumers from harassment by debt collectors. When original creditors sell their accounts receivable to debt collectors, it is often reported that consumers are harassed to an extreme extent by debt collectors. Harassing phone calls to their homes, workplaces as well as on their cell phones was the case. This extreme verbal abuse led to the filing of record level personal bankruptcies, and Congress had to act on this matter. The uniqueness of the FDCPA is that it allows consumers to dispute debts that they owe as well as request validation of these debts from the collection agencies. This was not possible before the FDCPA became law. Definition of Debt Collector? Debt collectors can also name themselves as "Factoring Company" or "Collection Agency" in order to confuse consumers and immune themselves from the rules of the Fair Debt Collection Practices Act. A debt collector is anyone regularly collects debts from consumers on behalf of the original creditors or third parties. Debt collectors use the 2 main communication methods: mail and phone. What Kinds of Debt? The Fair Debt Collection Practices Act (FDCPA) is applicable to the following types of debt: Auto loans Medical care debts Mortgages Credit card debt Retail business loans The FDCPA does NOT apply to the following types of debts: Agricultural or farming debts Business debts Code of Conduct The FDCPA strictly prohibits debt collectors from conducting any of the following activities: 1) Phoning up consumers outside of the hours 8:00am to 9:00pm (consumer's local time). 2) Contacting consumers in any other way after receiving written notice that the consumer disputes the debt and refuses to make payment. The only way the debt collector can hereafter contact the consumer is via litigation or a court judgement. 3) Contacting consumers at their workplace (after receiving written or phone notice that the consumer does NOT wish to be contacted at his/her workplace) 4) Pursuing futher collection efforts after consumer sends a debt validation request which has not been fulfilled by the debt collector. 5) Misrepresentation of the debt or inflating the debt Posted In: Debt Consolidation Articles | Entire Article| Comments | How to Create a Debt Consolidation Plan (August 16th, 2007) Look for the best Debt Consolidation Loan Here are the types of loans you should consider taking out under your debt consolidation plan: a) Home Equity Line of Credit can offer the lowest interest rates available because your house is pledged as collateral, thus the bank can afford to lend money at lower interest rates because it can confiscate your house in case you default. The advantage of taking out a home equity line of credit is that the interest you make on this loan is tax-deductible, check with your tax accountant. For example, if you take out a home equity loan of $31,900 to pay off this loan, assuming you are charged 7% interest, your monthly payment over a 5 year amortization term will be: Annual Interest = ($31,900 x 7%) =$2,233 Total Debt = ($31,900 + $2,233) = $34,133 5 year term = ($34,133 / 5 years) = $8534 Monthly payment = ($8,534 / 12) $711 b) Cash-Out Refinancing is another option available. With Cash-Out Refinancing, you take out a new mortgage on your home that is larger than the existing one you have. For example, if you currently have a mortgage loan of $100,000 while the value of your house is $150,000, you could take out a bigger mortgage loan of $131,900 ($100,000 for the mortgage loan on the house + $31,900 to pay off all your debts). With this strategy, your monthly mortgage payments will increase however you will end up saving a lot more money because of the fully paid off debts and less interest payments. c) Personal Loans: With personal loans, your house is NOT pledged as collateral. Personal loans are a good option if you do not want to pledge your home as collateral or do not own a home yet. The interest rate you will get on these loans is higher than home equity loans but a lot better than credit card APRs (Annual Percentage Rates). When considering any of the above 3 loans, take into account any closing costs as well as other fees and points that may inflate the cost of borrowing these loans. Posted In: Debt Consolidation Articles | Entire Article| Comments | 4 Ways to Successfully Control Debt (August 8th, 2007) Increasing amounts of debt will always have a negative impact on your credit score even if you are always punctual in your credit card payments. Successful and financially free people know how to take out debt, what types of debt to take out and how to manage their debts. Financially free people can easily differentiate between good debt and bad debt. Here's a tabular summary of good debt v/s bad debt: Good Debt Bad Debt Mortgage loan Business / Commercial Loan Real Estate Loan (Home Equity Line of Credit School Student Loan Auto loan Credit card debt Store credit cards Gambling debt Now our focus on this page is 4 smart ways to control debt. The most basic step is to AVOID taking out any of the above "Bad Debts." This can be hard for many people, take auto loans for example. Most people do not have enough cash on hand to fully purchase a car in cash, unless it is a $1000 car. Furthermore, most people carry Sears or Walmart credit cards, so the "Store Credit cards" item cannot be deleted from the list. 1) Take Out Debt at Lowest Interest Rates Possible If your credit card company charges you an interest rate in the 13% - 15% range, shop for other credit card companies that offer lower interest rates. If you have been a loyal customer to your credit card company for many years but have not seen a reduction in the interest rates charged, try to negotiate a deal with them to lower interest rates. Advise them that you have been a loyal customer to them for many years, but what are you getting from this loyalty? If they are not willing to lower the interest rate, advise them that you are shopping for another credit card company with lower rates and will be transferring your balance at any time soon. Credit card companies want to have long term loyal customers, so if they hear your statement about transferring your balance, they would be more than willing to co-operate with your demands. Tip: Negotiating a better interest rate will be easier if you have good credit, have been punctual with your credit card payments, do not have any late payment history and have been with a credit card company for a # of years. If you do find another credit card with lower interest rates, do not hesitate to conduct a credit card balance transfer. Use our Credit Card Balance Transfers Checklist to do this properly. Use these guidelines to make sure you get a good credit card transfer deal: Is the new lower interest rate that you are getting just an introductory rate? What happens when the introductory period is over? Does the interest rate go up? How high does it go up? What are the fees and charges you will pay when transferring your credit card balance? Make sure you know the minimum payments on your new credit card, any annual fees, the APR, finance charges, etc. learn more about all these credit card terminologies, go to 12 Important Credit Card Terms or Terminology You Need to Know Posted In: Debt Consolidation Articles | Entire Article| Comments | Credit Cards Can Help Make You Fat (July 15th, 2007) You probably think that's a rhetorical statement but it's true, credit and debit cards can help in making you fat. Most Americans know that high calorie fast foods can cause weight gains pretty quickly, infact 30% of Americans are considered obese. What's more, when you hop into the nearest McDonalds and have a bunch of credit cards in your wallet, it's easy to stick out the plastic to purchase those fries and burgers. Here are some statistics about credit cards and fast foods: » People using credit cards to buy fast foods spend 30% more than people who pay by cash. » More fast food outlets are accepting credit cards than ever before. Several years ago, fast food outlets accepted cash only because credit card transactions took too long to process; this was against the "fast food" concept. Nowadays, allmost all fast food outlets in the US accept credit and debit cards. Since they have these convenient pieces of plastic, they cannot resist the urge to grab something quick. A study conducted by Visa found that: » 68% of survey respondents said paying by Plastic means is faster than cash. » 77% said they can buy exactly what they want, because they are not limited by the amount of cash they have on hand. » $160 billion was spent in fast food restaurants in 2006. » 80% of these transactions were done in cash. » Up till March 31st, 2007, the use of credit cards has grown from 20% to 31%. Use of credit cards is growing because new technologies are enabling customers to NOT have to sign credit card receipts, and they don't even have to hand over their cards to the employees. This helps in eliminating credit card fraud. Jack in the Box restaurants has implemented a contactless card system in all of its restaurants that allows customers to hold their cards infront of a reader in the counter of the drive-through window. AMEX, Visa and MasterCard have all implemented a similar system. Cason Lane, a Spokeswoman for Jack in the Box quotes, "Instead of giving the credit card to the cashier, the consumer retains control of the credit card the whole time. They just swipe it themselves at the drive-through window. The feedback to that has been quite positive." Posted In: Debt Consolidation Articles | Entire Article| Comments | Top 10 Causes of Debt (July 5th, 2007) 3DebtConsolidation.com would NOT exist if there were no such thing as consumer debt. Peoples' lives would be a lot less stressful and we would have less bankruptcies every year. In this article, we will describe the top 10 causes of debt that if avoided, will help you live a debt & stress free life and achieve your American dream. Top 10 Causes of Debt » Less Income, More Expenses » Saving little or not at all » Divorce » Poor Money Management » Hoping to win the lottery » Underemployment » Big Medical expenses » Financial Ignorance » Non Financial Communication » Gambling 1) Less Income, More Expenses It so happens that the main breadwinner of the household loses his job but monthly expenses are not cut down in line with the reduction in income. This obviously leads to a rise in debt. The family is forced to use their credit cards for groceries, utilities, etc. 2) Saving little or not at all You should save for atleast 4-6 months of living expenses incase an unfortunate tragedy happens. For example, if you lose your job on June 1st, you shall have enough money to maintain your current lifestyle till December 1st of that year. Until December 1st, you can find yourself new employment or open your own business. You will often hear the phrase "Pay Yourself First." Having enough savings for a rainy day is always a worthwhile investment. Do it and you shall be better off! 3) Divorce Fees for the divorce attorney, division of assets between you and your spouse, proceeds given to children, etc are an easy way to rack up a huge debt. Filing for a divorce may force you to quit working for sometime which leads to reduction in income (point #1). 4) Poor Money Management Poor money management is one of the best reasons why so many families accumulate lots of debt. Not having a monthly spending plan and not keeping track of your monthly bills makes you unaware of where your money is going. You might be spending hundreds of dollars every month towards items that are useless and have no value in your life, yet you do not realize it. While your money is going towards purchasing useless items, you might also be charging your necessary purchases on your credit card, forcing you to pay interest on these purchases every month. To read more about creating a household budget to reduce debt, read our articles on Do It Yourself Debt Reduction. 5) Hoping to win the lottery Most people hope to win the lottery but the chances of that happening are 0%. Do not spend tomorrow's saved money today just because you expect a promotion in your job or are expecting an inheritance from a deceased grandfather. We all know life is unfair and things can go wrong more easily than going right. Posted In: Debt Consolidation Articles | Entire Article| Comments | When does Debt Collection Turn into Harassment? (July 1st, 2007) Dear 3DebtConsolidation.com: I have a problem with debt collection agencies. Debt Collection agency #1 calls me claiming i owe them $200, so i dispute that debt and ask for a debt validation letter. They do not respond to my debt validation request, instead sell my debt to Debt Collection agency #2 and this whole pattern repeats itself. Every 5-6 months, i have to send out a debt validation letter to each of these collection agencies costing me lots of money and time. Is this called debt harassment and what can I do to put a stop to it? I have contacted my state's Attorney General and he said that I have to file a complaint against each of these agencies, which doubles the amount of paperwork i have to do. Those collection agencies think by changing their name all the time and harassing me like this, I will eventually pay off this debt. However, I will not pay this wrongful debt! Dear Charlie: Charlie, by asking for a debt validation request each time, you are certainly doing the right thing. The problem in your case is that the debt collection agencies do not respond to your communication, instead use new tactics to constantly harass you. Since you have proof of a debt validation request letter, you are safe from any court judgements going against you. The next time a debt collection agency calls you, ask them for the Debt Collector's name, company and address. If they send you a letter, that's even better because all the company information will be on it! Next, you should file a complaint with the Federal Trade Commission. This is the Commission that's responsible for enacting the laws put in place by the Fair Debt Collection Practices Act (FDCPA). Their address is: Federal Trade Commission Physical Address: Consumer Response Center, Washington, D.C., 20580-0001 Phone #: (877)-FTC-HELP Website: www.ftc.gov Next, send the debt collection agency that is harassing you a copy of your complaint to the Federal Trade Commission. This letter will definitely make the collection agency reconsider its harassment efforts against you, considering they could get into serious trouble if the Federal Trade Commission takes action against them. I would also suggest the use of class action attorneys. Although a legal attorney would be too costly for your $200 claim, class attorneys look for patterns of abuse caused to the public. If your case turns out to be a series of debt collection agencies randomly abusing consumers across the country, this could become a class action lawsuit and the attorneys will not charge you for legal action. If these big class attorneys do not respond to your ideas, consider going to the Legal Assistance Office in your state. Their phone # can usually be found in the White Pages of your telephone directory. Good Luck Charlie! Consider making a post to our forums www.3debtconsolidation.com/forums to see if our Forum members have any suggestions regarding this matter. Posted In: Debt Consolidation Articles | Entire Article| Comments | Carnival of Do It Yourself Debt Consolidation 2 (June 30th, 2007) Welcome to the June 30th, 2007 edition of the Carnival of Debt Consolidation. In this post, we highlight 14 superb blog posts related to Debt & Credit, Finance & Investments & Personal Finance. Debt Consolidation Low Down Debt Consolidation Low Down presents the 9th Edition of the Debt Relief Carnival Credit Cards Aaron Wakling presents Virtual Prepaid Credit Cards posted at The Credit & Credit Card Blog, saying, "Interest in virtual credit cards seems to be increasing." Debt Tim Ramsey presents Student Debt Relief - How To Get Yourself Out Of Student Debt posted at My Debt Relief Blog, saying, "In this article you will find out how to get yourself out of student debt the smart way." Ted Reimers presents Student Loan Consolidation Tips posted at CampusGrotto. Finance & Investments Thomas Humes presents Millionaire Mind - Think Like A Millionaire posted at Wealth Building World, saying, "Millionaires, multi millionaires and billionaires have a unique way of looking at money. Learn about it and apply it to your own thinking." Jimmy Atkinson presents How Does Terrorism Affect Your Trading? posted at Forex Blog. Steve Faber presents Investments That Aren't - Just The Bad, and The Ugly posted at DebtBlog. Personal Finance Eric Stanley presents Personal Financing - Dos And Don?ts posted at Personal Finance Blog Articles, saying, "The following dos and donts can assist you to chalk out a constructive personal financing plan-" Wanda Grindstaff presents The Only Way to Solve Money Problems - Name it and Claim it posted at Creating Abundant Lifestyles. Tushar Mathur presents You are in financial trouble if... posted at Life of a Resident Alien.... Matthew Paulson presents How a $10 Purchase Might Rescue You from Your Cable Bill posted at Getting Green. Adam Parker presents Creating a Zero-based budget posted at Compelled By Reality, saying, "One of the things that has helped in this mindset shift of managing the finances given me was to create a "Zero-based budget." Well, "what is a zero-based budget?" you might ask. I'm glad you asked. I asked myself this same question when I first heard of it." Christine Kane presents Are You Saving Money or Wasting Time? posted at Christine Kane's Blog. Baz presents Air Conditioning At 69 Degrees - Way To Save! posted at Day In The Life of Baz. Posted In: Debt Consolidation Carnivals | Entire Article| Comments | Good Credit Scores Can Save Money on Mortgages, Home Equity Line of Credit & Auto Loans (June 25th, 2007) Have you ever wondered how much money you could save when borrowing loans if you had a good credit score? Small relative shifts on your credit score can make a huge impact on your monthly payments, and these monthly payments added over time can make significant difference as well. Gail MarksJarvis, author of Saving for Retirement without Living Like a Pauper or Winning the Lottery quotes, "What if you could invest that money in a simple mutual fund that covered the entire stock market and left it until you were approaching retirement?" Historically these funds have earned on average 10 percent per year. Investing even $100 per month of money saved, thanks to a better score, over the course of 40 years adds up to over $559,500." i) Money Saved on Mortgages It's assumed the mortgage is for $165,000 and 30 Year Fixed-Term Mortgage. Credit Score Interest Rate Monthly Payment Money Saved if Credit Score was >760 ** 760 - 850 6.274% $1,019 0 700 - 759 6.496% $1,042 $8627 660 - 699 6.780% $1,073 $19,788 620 - 659 7.590% $1,164 $52,336 580 - 619 8.905% $1,316 $107,234 500 - 579 9.899% $1,436 $150,192 ** This is the total money one could save over the life of the 30 year mortgage term if the Credit Score was greater than or equal to 760. These rates are derived from MyFico.com ii) Home Equity Loan It's assumed the home equity loan is for $30,000, 15 year Fixed-Mortgage term. Credit Score Interest Rate Monthly Payment Money Saved if Credit Score was >760 ** 740 - 850 8.492% $295 0 720 - 739 8.792% $301 $953 700 - 719 9.292% $310 $2,562 670 - 699 10.067% $324 $2,100 640 - 669 11.567% $352 $10,161 620 - 639 12.817% $376 $14,523 ** This is the total money one could save over the life of the 15 year mortgage term if the Credit Score was greater than or equal to 740. These rates are derived from MyFico.com Posted In: Debt Consolidation Articles | Entire Article| Comments | Credit Scores - Determining Your CreditWorthiness (June 24th, 2007) These days, it's not just loan lenders that check your Credit Score. Employers look at their potential employees' credit scores in the pre-screening process. Even landlords and insurance companies have got in the habit of checking Credit scores of their potential customers. If you have a low credit score, you are considered a high risk to lenders and have lesser chances of being granted credit. If you are indeed granted credit, you will have to pay higher fees, higher interest rates, etc. Apart from your credit score, lenders also look at your annual income, length of employment with your current employer, # of years you have lived at your current residence and the amount of debt you carry. It is actually thought that that 1 credit Score has made the entire concept of Credit Reports useless. Rather than analyzing the long and complicated Credit Report entries, lenders will simply look at your credit score and rate you on a scale from R0 to R9. More can be read about this rating at Importance of Your Credit Score (http://www.3debtconsolidation.com/credit-rating-importance.html) The factors that mean most to your credit score is your public records - any judgements against you, liens and any bankruptcies you have declared. Checking Your Credit Score Check your credit score 6 months before you apply for a big principal loan. If your credit score is low or medium, atleast this gives you 6 months of time whereby you can improve your credit score. Read this article for more analysis on this: How to Improve Your Credit Score - 4 Basic Things Check your credit score a few days before applying for your loan as well, and print out these results. This is because when the lender checks your credit score upon your loan application, the # he gets may be slightly different. This is OK because some lenders will print out a different version of the FICO score or industry specific FICO score. However, this # should be very close to the Credit Score that you received. Glinda Bridgforth, author of Girl, Get Your Credit Straight! quotes, "It's important to be patient with the process when it comes to increasing your credit score. Once you've fixed all errors, are paying your bills on time, reducing balances by paying more than the minimum payments and lowering interest rates as much as possible, be patient and let time work to your benefit. I know it can feel like you're watching grass grow, but if you're consistent with following these healthy habits, your credit score will definitely increase and you'll be well on your way to getting your credit straight." Posted In: Debt Consolidation Articles | Entire Article| Comments | 10 Big Bankruptcy Bloopers (June 22nd, 2007) If you're filing for bankruptcy, you're already in lots of trouble. You sure do not want to add any more troubles to your already huge list of troubles do you? So avoid the following 10 huge mistakes that anyone filing bankruptcy can commit: 1) Failure to Disclose any Past Bankruptcies When you're going through the court proceedings, be sure to disclose any previous bankruptcies you may have declared. If you don't, the Judge will check the US Bankruptcies Database and easily find out that you have previously declared it, and this will make matters even worse for you. 2) Understating Your Income and Overstating Your Expenses Do NOT use faulty techniques such as understating your monthly income and overstating your expenses to make the judge believe that you do not have any disposable income left over to pay off bills. 3) Failure to Disclose Assets Owned You may think, "I don't want to lose my car, therefore i better not say anything about it." The Judge has means and ways of finding out that you own a motor vehicle. Instead, tell your Attorney that you do indeed own a car and its a huge necessity for you, thus the Attorney will find ways of helping you retain your vehicle. If you do not want to lose your bankruptcy petition and be declined, declare all of your material assets to your Attorney and let him deal with them. 4) Trying to Use a Paralegal Under the new Bankruptcy laws, you cannot use a Paralegal to give you bankruptcy advice. Instead, you need the help of a professional bankruptcy lawyer, especially if you own material assets. 5) Failure to Remit Documents If the court asks you to fax them any important documents, do this immediately and take it very seriously. Your case could go against you if you fail to remit any important documents in a timely manner. Posted In: Debt Consolidation Articles | Entire Article| Comments |

student loan refinancing

entails taking out one loan to pay off many others. This is often done to secure a lower interests,rates secure a fixed interest rate or for the convenience of servicing only one loan.

Debt consolidation can simply be from a number of unsecured loans into another unsecured loan, but more often it involves a secured loan against an asset that serves as collateral, most commonly a house. In this case, a mortgage is secured against the house. The collateralization of the loan allows a lower interest rate than without it, because by collateralizing, the asset owner agrees to allow the forced sale (foreclosure) of the asset to pay back the loan. The risk to the lender is reduced so the interest rate offered is lower.

Sometimes, debt consolidation companies can discount the amount of the loan. When the debtor is in danger of bankruptcy, the debt consolidator will buy the loan at a discount. A prudent debtor can shop around for consolidators who will pass along some of the savings. Consolidation can affect the ability of the debtor to discharge debts in bankruptcy, so the decision to consolidate must be weighed carefully.

Debt consolidation is often advisable in theory when someone is paying credit card debt. Credit cards can carry a much larger interest rate than even an unsecured loan from a bank. Debtors with property such as a home or car may get a lower rate through a secured loans using their property as collateral. Then the total interest and the total cash flow paid towards the debt is lower allowing the debt to be paid off sooner, incurring less interest.

Because of the theoretical advantage that debt consolidation offers a consumer that has high interest debt balances, companies can take advantage of that benefit of refinancing to charge very high fees in the debt consolidation loan. Sometimes these fees are near the state maximum for mortgage fees. In addition, some unscrupulous companies will knowingly wait until a client has backed themselves into a corner and must refinance in order to consolidate and pay off bills that they are behind on the payments. If the client does not refinance they may lose their house, so they are willing to pay any allowable fee to complete the debt consolidation. In some cases the situation is that the client does not have enough time to shop for another lender with lower fees and may not even be fully aware of them. This practice is known as predatory lending. Certainly many, if not most, debt consolidation transactions do not involve predatory lending

USA

In the United States, federal student loans are consolidated somewhat differently, as federal student loans are guaranteed by the U.S. government. In a federal student loan consolidation, existing loans are purchased and closed by a loan consolidation company or by the Department of Education (depending on what type of federal student loan the borrower holds). Interest rates for the consolidation are based on that year's student loan rate, which is in turn based on the 91-day Treasury bill rate at the last auction in May of each calendar year.^{[citation needed]}

Student loan rates can fluctuate from the current low of 4.70% to a maximum of 8.25% for federal Stafford loans, 9% for PLUS loans.^{[citation needed]} The current consolidation program allows students to consolidate once with a private lender, and reconsolidate again only with the Department of Education.^{[citation needed]} Upon consolidation, a fixed interest rate is set based on the then-current interest rate. Reconsolidating does not change that rate. If the student combines loans of different types and rates into one new consolidation loan, a weighted average calculation will establish the appropriate rate based on the then-current interest rates of the different loans being consolidated together.

Federal student loan consolidation is often referred to as refinancing, which is incorrect because the loan rates are not changed, merely locked in. Unlike private sector debt consolidation, student loan consolidation does not incur any fees for the borrower; private companies make money on student loan consolidation by reaping subsidies from the federal government.

Student loan consolidation can be beneficial to students' credit rating, but it's important to note that not all federal student loan consolidation companies report their loans to all credit bureaus.^{[citation needed]}

[edit] UK

in the UK Student Loan entitlements are guaranteed, and are recovered using a means-tested system from the students future income. Student Loans in the UK can not be included in Bankruptcy, but do not affect a persons credit rating because the repayments are recovered from the students future salary at source by the employer before any income is paid, similar to Income Tax and National Insurance contributions. Many students however, are struggling with debt well after their courses have finished

The level of personal debt in the UK has also risen astonishingly in recent years:

"Total UK personal debt at the end of February 2008 stood at £1,421bn. The growth rate increased to 8.9% for the previous 12 months which equates to an increase of £111bn. ^[1]

[edit] Concerns

In recent years, reports in the media have raised concerns about the use of consolidation loans.^[2] The worry is that many people are tempted to consolidate unsecured debt into secured debt, usually secured against their home. Although the monthly payments can often be lower, the total amount repaid is often significantly higher due to the long period of the loan. Debt consolidation sometimes only treats the symptoms of debt and does not address the root problem. In some circumstances, snowballing debt may be a better solution.

There are other alternatives to a debt consolidation loan, where unsecured debt is not "shifted" to secured debt, but is eliminated through a settlement or payment plan. Debt consolidation can be confusing for many people, so it is helpful to learn about all of your options, and sometimes with the help of an advisor.

[edit] Debt consolidation vs loans

The multiple options available to consolidate ones debts can be quite confusing, credit counseling programs, debt settlement, debt consolidation loans, bankruptcy are just a few options available today. Trying to find the best option to suit your current financial situation can be a difficult task.

Typically, debt consolidation programs are debt repayment programs. They can consolidate most types of unsecured debts from major credit cards to personal and student loans. You choose the accounts you want to enter into the program when joining. Once enrolled, the company will contact your creditors to negotiate more favorable repayment terms on your accounts and possibly reducing your interest rates and it may even elimination late fees. You will then send that company one lump sum payment monthly which they will disperse to the creditors you enrolled on your account when joining.

Most so called debt consolidation loans are just home equity loans in disguise. They use the equity built up in your current home loan and use it to repay all of your unsecured debts. These types of loan options usually come with heavy application fees and can greatly extend the amount of time it will take you to pay off those debts. These loans also convert all of your current unsecured debts into on secured debt which is now backed by your home. If you fall behind on your payments you could risk losing your property

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Student Loan Consolidation

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• Lower your payment by as much as 50%
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Private Consolidation Loan

• Introductory rate starting as low as 5.76%
• Option to pay interest-only for the first two years
• If you have a cosigner now, this could be an avenue to get them off

Loan Resources & Tools

Student Loan Consolidation FAQ
Answers to common questions about your student loan

Federal Consolidation Calculator
Estimate your monthly payments and savings with our loan savings calculator...

Student Loan Consolidation Rates
Current rates for Stafford, Plus and Grad Plus.

Loan Application Forms
Appropriate forms available for you to download

auto insurance quote

Auto Insurance Quotes - To The Rescue!

When you buy a new vehicle or decide to switch your insurance coverage, you can do so easily. Buying new auto insurance is not like it once was. There are often many agencies and representatives willing to answer you questions on the spot.

One easy way to obtain auto insurance is through auto insurance quotes. These are often free and quick to obtain. One way to ensure that the quotes that you receive are affordable is to maintain a good driving record. This includes driving safely and following any guidelines that are needed if you have a teenage driver in your house. Following these regulations will help you achieve the lowest auto insurance quote available.

Career

What is your dream job..? what you wish to be ? ,many people asked me that Question..and you have to ask your self about then write a paper.....
so ,,
you found many dreams
At first you have to make a co-operation between your interests hobbies, and things you are talented with..
you wrote it ...oak so you need to write the points of weakness that you have and compare then write the common things between them ,but be sure that you have organize your dreams gradually according to the most and the least..and how you got benefits of the things you are not that much keen to do..


And now you are ready to be what you want

Be good to others ..you will reach the skies

At first you have to know that God blessed you with many things . Start to be grateful then every thing will change to be better.So..at first you have to believe that this world is made for you and God blessed you more than any creature on the earth..look at the world ,explore the miracles as you will find that their is God in this wold . And God made all this specific details that you try to ignore..then what about ignoring you by the world.
You didn't do any thing yet so , you need those first steps to be the person you dreamed to be:
1-Be grateful to God,family,neighbors friends,relatives and teachers..learn to thank people before you forget there good deed to you.

2-If you hope some thing for your self hope that thing to every on the planet .

3- Try to help people as you can and be devoted by your will to God, never consider ,what you will get.

4- When you help people, imagine that they are a part of your family,and you have to do your best for them.

5- Forget the offense and try to remember the the best Qualities and characters of every one.

6-Never talk about people behind there back.

7- Share what you got with every one. .

8-When you do something harmful because of anger remember two things that God sees you,and the one you will hurt you will change him or her to worse.

At first follow those words for one week then write your planes with clear mind .

GOOD LUCK...........