GET OUT OF DEBT – TOP FIVE REASONS YOU NEED TO CONSOLIDATE LOANS

Today, the number of people filing for bankruptcy has
skyrocketed by 44% in just the past 10 years with numbers
continuing to climb. Consumer credit has reached an all-time
high, leaving more and more people in debt. While we need
consumer spending to maintain and grow the economy, when money
and credit are misused, disaster strikes.

Unfortunately, people are notorious for abusing money and before
they know it, they are in completely over their heads with no
way to get out – or so they think. In truth, there are options
for getting out of debt, staying out of debt, and rebuilding
damaged credit. Below, you will find the top five reasons for
taking back control of your life with a debt consolidation loan
or 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 part
of a person’s income. However, with interest rates now at a
serious low and being a homeowner an excellent investment, this
is the time to save your home. If you find that you are being
swallowed up by bills and your mortgage is getting further and
further behind, a debt consolidation loan could not only get you
caught up on payments but also make owning your home more
manageable and enjoyable.

Going to School

Unfortunately, there are people all across the country that
would love to go to school or go back to school to complete a
degree. However, the high cost associated with tuition, books,
and supplies makes it impossible for many people due to the high
level of bills. In fact, with so many people working two jobs
just to stay above water financially, trying to fit in the cost
of the classroom is simply too difficult.

However, by choosing a debt consolidation loan or student
consolidation loan, you can get all of your outstanding debt
under control. With this type of loan, everything is wrapped
into one loan at a great interest rate and with payment
schedules, you can afford. With that, your bills would be far
more management, allowing you to earn the coveted degree that
will only push you further into success.

Credit Card Interest Rates

Sadly, many credit card companies lure people into having a
credit 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 by
several credit cards and there is no way the individual could
pay 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 high
interest rate, they would be paying on that one credit card debt
for 20 years or more before finally getting it paid off, just
because of the interest. That means they are spending thousands
and thousands of dollars just for the “privilege” to carry
around a credit card. By securing a debt consolidation loan, you
could have all outstanding credit card debt rolled into one loan
with a low interest rate. Therefore, the debt would be paid off
within 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 are
booming. With this type of service, you also have the
opportunity to meet one-on-one with a professional counselor
that will review your debt versus income ratio and set you up on
a realistic payment plan that works specifically for you.

An agency that specializes in debt consolidation loans or
student consolidation loans is structured to work directly with
your debtors, working out lower interest rates and better
repayment schedules. With that, you can keep a schedule that
would allow you to pay off all your debt in 30 to 60 months as
opposed to 20 to 30 years! The bottom line is that depending on
the 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 into
business for yourself, the first thing that will happen is a
report will be run on our credit history. This report will show
potential debtors how much money you own, if you pay your bills
on time, if you have ever had a judgment against you or filed
for bankruptcy, and everything possible about spending and
paying habits. If you are way in over your head from a financial
perspective, chances are you are overextended with credit, have
missed some payments, made late payments, and overall have a
fair or poor credit report history.

That means if you wanted to buy a home or car, you would be
denied. Maintaining good credit is crucial and something
everyone should take seriously. A debt consolidation loan would
help you get back on track so your history report is favorable,
not damaging. With that, if you want to invest in a home when
you get married, or buy a larger car when little ones begin
arriving, you could. Therefore, a debt consolidation loan can
help you with future buying

My son and his wife are entering an exciting phase of life. They are going to have twins. They have waited four years to start their family and now they are going to have two babies. They are very excited and a little overwhelmed at the same time. They wanted to wait to have children until they were both secure in their jobs and financially set. They have paid off their student loans and are starting to look for a home. They were planning to wait a while to move to a house, however having twins is speeding up that process because their apartment will not be big enough for the four of them.

They were excited about meeting with a realtor. They went to the bank to fill out loan applications so that they would be prior approved for a mortgage. I was surprised when our son called us and said the credit report came back with blemishes on it. There were several outstanding accounts in my son’s name. At first the bank thought someone had stolen his identity, however we have a very common surname and it seems that mistakes were made in the billing department at the university. His student loan payments had been credited to another person’s account. The university recognized the mistake and was going to correct it, but while this occurred the ability to get prior approved for a mortgage loan was going to be placed on hold. When I heard this I decided that I better check my credit report as well as my retirement account because their were two other women that had the same first and last name that I have working in my field. I am always careful to include my middle initial in all my documents.

I went on a popular site to check my credit report. I had talked with a friend of ours that is a banker and he suggested running the credit reports separately for myself and my husband and then one jointly. He said he always advises couples to do this so they know if one or the other has to establish a better rating. I was surprised when my credit report came back that I had an outstanding student loan for a university that I never attended. The loan was for over twenty thousand dollars and had been taken out ten years after I had my degree, from a different college. I called the university and set up an appointment to meet with the accounting department. I took my identifications with me and met with the accountant. The outstanding loan was for another woman that had a similar first name a completely different last name but in their system my social security number. When they told me this I had visions of all my social security being inaccurate, but when they looked things up they realized that they had superimposed some of her social security numbers. They cleared my social security number off of her account. It took several weeks but my credit report is now clean. The universities need to be more careful in their loan processing.