Credit Cards Debt Consolidation (Consolidate Your Debt)

Consolidate Your Debt

Consolidating credit card debt is never easy. Too often people run up their debts without even realizing it until it is too late. If you are one of these people, don't feel bad or trapped, or that there is something wrong with you. Credit cards are the hardest bills to consolidate because the interest rates are so high. But not any more. We are here to help you get your monthly payments to a bear minimum.

Most often, credit card debts get so high because people feel trapped within their payments. More often than not, you will find yourself using one credit card to make payments on another. You think to yourself, "at least I'm making the payments on time", when in actuality, you are simply substituting one payment for another. Right now you probably have up to five different payments to make. Let our professional team convert your five payments into one affordable payment. We'll help you sleep a lot easier.

Written by Risto - Webmaster of credit cards comparison site http://www.credit-cards-info.com

Consolidate Your Debt

Open the Cash Vault Inside Your Home (Consolidate Your Debt)

Consolidate Your Debt

Believe it or not, many people do not understand equity and the power it provides.

In its purest form, equity is money. With regard to real estate
(specifically, your house or other investment property), equity is measured
in terms of the value of the property minus what you owe. So, if your home
is valued at $100,000, and you owe $40,000 on it, you have $60,000 in
equity (actual money that is available to you, under particular
circumstances).

Surprisingly, many people have this type of equity and do
not take advantage of it. Some people are actually in dire financial straits
and fail to realize their problems can be solved very easily, by taking the
equity from their home. Remember, your home is a "vault," and the money
inside that vault belongs to you. Best of all, you can use that money/ equity
for anything you desire, from home improvement to travel expenses to
spending money.

Exactly what is a home equity line of credit or HELOC?
A home equity line of credit, which lenders and mortgage brokers
refer to as a HELOC, is a different kind of home loan. An equity line has
different rates and terms from a conventional first mortgage. In a standard
home loan, or mortgage, your monthly payments cover both the principal
loan and the interest you are charged.

Most mortgage payments include escrow, or taxes and insurance. An equity line of
credit payment does not reduce your principal loan amount and does not include escrow. You are
borrowing the equity in your house and paying the bank an interest premium
on that loan. With a HELOC, you pay only the interest on the loan and,
generally, you get the money for less time than you do a standard first
mortgage.

The underwriting on these loans is very simple, and in most cases, the
loans are very easy to get. At close, you either get one big check, which you
can deposit into your savings or checking account or you can get a check
book and treat your equity line of credit as another checking account. The
payment on equity lines is very enticing. Paying interest only makes for a
very low payment. It's important to remember, though, when paying
interest only, you are not paying down the principal loan balance.

The Power of Interest-Only Payments
So, let's suppose you take an equity line for $50,000 at 4.25% interest.
This interest rate is based on the Prime rate, a floating rate that can change
but does not fluctuate very often. When this article was first published, the prime
rate was 4.25 percent. So, on your $50,000 equity line of credit, your payment
is $177.00 each month. This is an incredibly low payment on a loan of this size.
This gives you a great deal of power, because you can control a large sum of
money for an extremely low monthly payment. It is this low, because you are only
paying the interest on the loan.

At the end of the first year, you will have paid the bank over $2,100.
You will, however, still owe $50,000. This is because your monthly
payment is an interest-only payment. This is where some people can get in
trouble with home equity lines of credit. If you use all the equity in your
home and never pay down the balance, then decide to sell your house, you
won't make anything on the sale, because you'll owe it all to the bank.

It is also important to understand the terms on a home equity line of
credit (HELOC). When talking to mortgage professionals about home
equity lines of credit, be sure you understand the terms, as lenders vary on
what they'll offer. Like conventional mortgages, which have terms of 30
years, 15 years, 10 years, etc., home equity lines also have various terms, but
not all lenders offer them. Don't let this confuse you. Just find your
trustworthy mortgage broker, and tell him or her exactly what you want.

Unlike mortgage payments, which include complicated yearly amortization of the
principal loan amount, interest-only payments are calculated very easily. You can
do it in two simple steps. To find out your payment, first learn what rate of interest
you'll be charged. If you are using 80 percent or less of the equity available and you
have an A credit rating, you'll be able to get the best rate available, which is
the prime rate.

Now, let's assume you have $40,000 in equity in your house, but you
only need $20,000 (taking less than 100% of the equity is important). You
take $20,000 and multiply it by 4.25%, which gives you 850. This is what
you'll pay each year to borrow $20,000. Next, divide the 850 by 12 for a
monthly, interest-only payment. Your payment for your $20,000 home
equity line of credit is $70.83.

This is a very powerful loan. Imagine paying less than 71 dollars for the
ability to control $20,000. Some people pay more for cable TV or their monthly
cell phone bill. Some people even take the equity in their home and invest it elsewhere.
You're probably figuring out how much equity you have right now, and what you can
do with that money!

To learn how you can turn your equity into a never-ending money cycle that
will fill your bank account year after year, read Winning the Mortgage Game.
Whatever you decide, open the cash vault inside your home, and make use
of your equity today.

Mark Barnes is author of the wealth-building system, Winning the Mortgage Game and other investment real estate books. He is also a suspense novelist, and his new novel, The League, will thrill both suspense and sports fans. Learn about Mark's wealth-building system and get his free home loan course at http://www.winningthemortgagegame.com. Learn more about The League and read an excerpt at http://www.sportsnovels.com

Consolidate Your Debt

16.4% APR $5,000 Auto Loan...HELP! (Consolidate Your Debt)

Consolidate Your Debt

Are you the victim of a high interest rate auto loan? If so, the following email discussion may help you. Read on:

DEAR LoanResources.Net:

I was very impressed with your article entitled "8 Point Checklist, Evaluating Online Lenders."

I have tried several sources to refinance my auto. I only have 2 more years to pay $245.04 a month. I owe 4,414.00 on the car loan.

This may not seem like a lot of money but I would like a lower interest rate on my car loan which is now $16.4% APR.

I want to still pay it off in 24 months but at a lower rate so that I can use the money saved to help pay off other bills.

In my internet searches, the auto refinance loans required that you borrow more money than I need. I tried to search for unsecured personal loans on your website and they also required that I borrow more money.

I have a very good credit record and I am working to get some of my bills paid off.

Is there anything you can suggest so that I can get a lower rate auto loan for under $5,000? Any assistance will be appreciated.

Thanks. Geraldine W.

DEAR Geraldine:

Sorry I have not gotten back to you sooner. I took a couple weeks off to be with family...Thanks for the compliment on the article!

Anyway, I read your email and I do indeed have a suggestion or two that I'm happy to share.

A COUPLE THINGS INITIALLY:

1. First, you're paying a very high interest rate at 16.4% APR for an auto loan! I'm going to assume that your statement as to your good credit is accurate. If that's true, then you do indeed need to fix this.

2. Since you only need $5000, with the intention of paying it off in 2 years or less, I don't think you should look for a refinance auto loan or a refinance on your home. Indeed, the bank is going to want to loan you much more money, usually at least $25,000. While a refinance or equity loan on your home does offer tax benefits, we're only talking about interest on $5,000 over the course of 2 years. I have another idea you may not have considered.

HAVE YOU CONSIDERED?

Have you considered just putting the balance of your car loan on a credit card that has a lower interest rate?

1. Credit Cards are, indeed, unsecured lines of credit with financial institutions.

2. They are the perfect financial vehicle for a $5,000 transfer of debt, with added flexibility, and you should be able to find an interest rate between 9 to 11%, and better, on average.

3. IN ADDITION! Once approved, the bank will usually give you blank checks for balance transfers (sometimes they'll just do it for you right over the phone)...,

4. AND GUESS WHAT? The majority of the time, the incentive interest rates on the balance transfers are EXTREMELY low; sometimes zero percent for up to 6 months to a year.

5. IN ADDITION! you can apply for incentive cards that provide rewards for your spending....free airline miles, cash back programs, etc. I use the American Express Blue, and I get cash back of up to 3% on everything I spend. So, for $5,000, 3% cash back, AMEX? pays me $150.

How do you like them apples? The bank pays YOU to borrow money.

RECOMMENDED PLAN OF ACTION:

So, Geraldine, here's what I recommend you do:

1. Go back to our website, and explore the credit card offers we've recommended. We've picked out what we think are the best offers, and there are a LOT of them, so think of it as a much needed shopping trip! Pay particular attention to our links for "incentive cards". We have two pages of them.

2. Apply for whatever card or cards suit your tastes and needs. There are so many great reward cards. Limit yourself to only your imagination.

3. Get approved, receive card, and receive balance transfer checks.

4. Pay off loan to 16.4% bank!

5. Pay off credit card loan (with extremely low rate and incentives), at your leisure!

?And enjoy the fact that you just made an excellent financial move, saved money, made money, and gave yourself the flexibility to manage your debt on your own schedule...

Hope this helps...Let me know how it all works out.

We've enjoyed providing this information to you, and we wish you the best of luck in your pursuits. Remember to always seek out good advice from those you trust, and never turn your back on your own common sense.

Publisher's Directions:

This article may be freely distributed so long as the copyright, author's information, disclaimer, and an active link (where possible) are included.

Disclaimer: Statements and opinions expressed in the articles, reviews and other materials herein are those of the authors. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.

Copyright 2005, by LoanResources.Org , This article is available in full format at: Auto Loan Help , Tom Levine provides a solid, common sense approach to solving problems and answering questions relating to consumer loan products. His website seeks to provide free online resources for the consumer, including rate-watch, tips and articles, financial communication, news, and links to products and services.

Consolidate Your Debt

The Pros and Cons of Debt Consolidation Loans (Consolidate Your Date)

Consolidate Your Debt

You are swimming in debt. You have 4 credit cards maxed out, a car loan, a consumer loan, and a house payment. Simply making the minimum payments is causing your distress and certainly not getting you out of debt. What should you do?

Some people feel that debt consolidation loans are the best option. A debt consolidation loans is one loan which pays off many other loans or lines of credit.

I'm sure you've seen the advertisements of smiling people who have chosen to take a consolidation loan. They seem to have had the weight of the world lifted off their shoulders. But are debt consolidation loans a good deal? Let's explore the pros and cons of this type of debt solution.

Pros

1. One payment versus many payments: The average citizen of the USA pays 11 different creditors every month. Making one single payment is much easier than figuring out who should get paid how much and when. This makes managing your finances much easier.

2. Reduced interest rates: Since the most common type of debt consolidation loan is the home equity loan, also called a second mortgage, the interest rates will be lower than most consumer debt interest rates. Your mortgage is a secured debt. This means that they have something they can take from you if you do not make your payment. Credit cards are unsecured loans. They have nothing except your word and your history. Since this is the case, unsecured loans typically have higher interest rates.

3. Lower monthly payments: Since the interest rate is lower and because you have one payment vs many, the amount you have to pay per month is typically decreased significantly.

4. Only one creditor: With a consolidated loan, you only have one creditor to deal with. If there are any problems or issues, you will only have to make one call instead of several. Once again, this simply makes controlling your finances much easier.

5. Tax Breaks: Interest paid to a credit card is money down the drain. Interest paid to a mortgage can be used as a tax write-off.

Sounds great, doesn't it? Before you run out and get a loan, let's look at the other side of the picture - the cons.

Cons

1. Easy to get into further debt: With an easier load to bear and more money left over at the end of the month, it might be easy to start using your credit cards again or continuing spending habits that got you into such credit card debt in the first place.

2. Longer time to pay off: Most mortgages are the 10 to 30 year variety. This means that rather than spend a couple of years getting out of credit card debt, you will be spending the length of your mortgage getting out of debt.

3. Spend more over the long haul: Even though the interest rate is less, if you take the loan out over a 30 year period, you may end up spending more than you would have if you had kept each individual loan.

4. You can lose everything: Consolidation loans are secured loans. If you didn't pay an unsecured credit card loan, it would give you a bad rating but your home would still be secure. If you do not pay a secured loan, they will take away whatever secured the loan. In most cases, this is your home.

As you can see, consolidated loans are not for everyone. Before you make a decision, you must realistically look at the pros and cons to determine if this is the right decision for you.

Wesley Atkins is the owner of http://www.credit-cards-advisor.com- which aims to get you fitted with the best credit cards to suit your situation. With numerous credit card articles and easy online credit card applications you will never choose the wrong credit card again.

Consolidate Your Debt