Consolidation of credit cards, student loans and car payments tips
Should you consolidate your debt? For a lot of people, the mere phrase "debt consolidation" simply brings to mind the idea of a whole lot of disreputable debt consolidation companies that just want you to hand over your debt to them, in exchange for them offering ridiculously high, unconscionable debt consolidation rates.
That doesn't always have to be the case. At the most simple level, debt consolidation means that you can roll all your existing loans into one, and maybe get a lower rate. You have to watch out for debt consolidation companies, though, that only take all your existing debt and give you an even worse rate.
Cutting Through the Bull
Why would a debt consolidation company in Orange County, California represent itself as helping you when it really isn't? Simple -they know when they've found a sucker. They're banking on you not knowing the difference between debt consolidation, and debt management.
When you consolidate your debt, you combine all your existing loans - your student loans, your care loan, and your credit cards, into one debt. You'll be required to get a loan from one lender, and all your debts will be rolled into one. This may or may not save you money.
The most important thing you can do is find a reputable consolidator in Orange County, California. Try your bank and your credit union, and find out what mortgage rates they'll be able to offer. Pick the best deal. You can also look for online services, but make sure that you understand that not all providers are crated equally. Beware of debt consolidation companies that try to sell you other services, or that make you feel uncomfortable. And bear in mind that if it sounds too good to be true, it probably is.
Also, consider how debt consolidation is likely to impact your overall credit score. You'll almost certainly have to submit to a credit check if you're looking for debt consolidation.
Debt Consolidation Loans and Bad Credit
Now, are you struggling with credit debt? Is your credit rating less than what it should be? If you're looking for a way out, a way to get yourself back on track, and rebuild your credit, you're not alone. You might want to consider consolidating your credit into one loan, and deal only with one monthly payment, but you might find that your bank isn't overly helpful. You may have thought about other alternatives, but before you do that, you should think carefully. You can make a smart choice, pay off our debt, and rebuild your credit, but you have to do it carefully.
Your First Course of Action
If you're considering consolidating your credit, your first course of action will, of course, be to get in touch with your bank or credit union in Orange County, California. But don't be surprised if they turn you down. Usually, they'll offer traditional loans, but they won't want to do consolidation loans for people who don't have good credit. This is because they base their loans on risk - and if you're risk level is too high, they won't give you a loan.
If you're considering consolidating your credit, your first course of action will, of course, be to get in touch with your bank or credit union. But don't be surprised if they turn you down. Usually, they'll offer traditional loans, but they won't want to do consolidation loans for people who don't have good credit. This is because they base their loans on risk - and if you're risk level is too high, they won't give you a loan.
One word - don't. This type of lender offers you an advance on your paycheck, and gives you the option of paying back the loan when you get our next paycheck. If you look at the fine print, though, you'll find out that you're going to pay horrendous interest rates. It's not a good way to get out of debt, or to stay debt-free. It can get you so deep in debt that you'll never be able to get out from under. So if you see a neon sign advertising "cheap loans, now!" run, do not walk. They promise you no credit check and quick cash, but you'll be into them for the rest of your life.
Debt Consolidation Lenders
A debt consolidation lender gives loans to people who have bad credit. When you go for this type of loan, what you're doing is getting the lender to pay off your existing debts right now, and then you have just one loan and one monthly payment that you'll pay to your new lender. Your interest rate is based on your credit history, and your ability to pay back the loan.
Debt consolidation lenders come in all shapes and sizes - interest rates can vary considerably. So if you're thinking about a debt consolidation loan, shop carefully.
This isn't a type of loan. Essentially, with consumer counseling, what you're doing is paying an agency to help you get a better rate on your debts. A consumer counselor may also recommend bankruptcy as a way of getting out from under. Most consumer counseling agencies are not for profit, which means that they're actually in it to help you get out from under.
The Final Word
Whatever you decide to do - consolidate, declare bankruptcy, or go for an agency that can help you to get a better rate on your debts, consider your options carefully. And never, ever go with a payday loan company.