How do you know if a debt consolidation loan is a good idea?

How do you know if a debt consolidation loan is a good idea?
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1 Answer

Answer :

Debt consolidation loans are good for people who are trying to keep track of lots of small bills like maxed out low limit credit cards, or for people with multiple student loans. By putting all the debt under one lump loan, it helps people who were falling behind get control of their debt. A debt consolidation loan is a good idea if after consolidation you have a lower total monthly payment at a lower interest. If one of your loans has a significantly higher interest rate than your other loans, you'll want to exclude it from your debt consolidation and focus on paying it off as quickly as possible. If your debt consolidation loan includes it, your rate will be higher and you will wind up paying more over time.
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Related questions

Where is the best place to get an unsecured personal loan for debt consolidation of around $19k?

Description : Where is the best place to get an unsecured personal loan for debt consolidation of around $19k?

Last Answer : You might want to check out Propser, a peer-to-peer lending site.

What banks offer the best interest rates on a debt consolidation loan in the Boston area?

Description : What banks offer the best interest rates on a debt consolidation loan in the Boston area?

Last Answer : There are a lot of banks that offer good interest rates on debt consolidation loans. The best one to choose is Regions.

How will a consolidation loan effect my finances with $20,000 in credit card debt?

Description : How will a consolidation loan effect my finances with $20,000 in credit card debt?

Last Answer : A consolidation loan will pay off all of your bills and give you one payment. This program will only really work if you cut up your credit cards and have discipline.

Is it wise to obtain a debt consolidation loan?

Description : Is it wise to obtain a debt consolidation loan?

Last Answer : Any time you can obtain a debt consolidation loan it is a good idea. This is especially true if you can lower your interest rate. You will simplify your finances and also get on a rigid repayment plan.

Can I get a debt consolidation loan with bad credit?

Description : Can I get a debt consolidation loan with bad credit?

Last Answer : I don't see why not. Here's a good article I found that will help you: http://www.lendingtree.com/debt-consolidation/advice/ I hope that helps.

What is the different of the consolidation debt loan from other debt loan?

Description : What is the different of the consolidation debt loan from other debt loan?

Last Answer : Obligation solidification and obligation repayment assist you with paying off your obligation load, yet they do as such in various manners and by utilizing various systems. affordabledebtconsolidation Obligation ... pay a lower sum than what you owe, frequently in a single amount settlement.

A type of loan, where the bank or the lending institution provides the borrower with a loan that helps the borrower to pay off his all previous debts is termed as ________ A. Debt Recovery B. Debt Settlement C. Debt Management D. Debt Consolidation

Description : A type of loan, where the bank or the lending institution provides the borrower with a loan that helps the borrower to pay off his all previous debts is termed as ________ A. Debt Recovery B. Debt Settlement C. Debt Management D. Debt Consolidation

Last Answer : D. Debt Consolidation Explanation: Debt consolidation is a form of debt refinancing that entails taking out one loan to pay off many others.

Should I Consider Credit Card Debt Consolidation?

Description : Should I Consider Credit Card Debt Consolidation?

Last Answer : Let the great debt-ate begin. Many Americans are still being hithard by the economic downturn of the past couple of years. Thoughthe economy is beginning to show signs of life and the job ... enjoyable either. Ofcourse, you weren't complaining when you were buying those JimmyChoo shoes or new Gucc

What are some of my options when it comes to debt consolidation?

Description : What are some of my options when it comes to debt consolidation?

Last Answer : An acknowledge advising administration works for lenders to improve terms on your credit, including decreased loan fees and lower regularly scheduled installments. You make one regularly ... lenders actually should acknowledge recommendations made by the credit advising organization debt redemption.

Is there a free federal program that provides debt consolidation advice online?

Description : Is there a free federal program that provides debt consolidation advice online?

Last Answer : On the .Gov pages is a long list of place that handle free federal program that provides debt consolidation advice. All they need to know is your location and they can help up in your own state.

How do I find the best debt consolidation help?

Description : How do I find the best debt consolidation help?

Last Answer : You can find the best debt consolidation help at www.DebtHelp-America.com. Another good site is www.FreedomDebtRelief.com

How much credit card debt do I need to qualify for consolidation?

Description : How much credit card debt do I need to qualify for consolidation?

Last Answer : Most debt consolidation companies advertise that you need $10000 in debt. There is actually no real amout, but less than $10000 and you are generally advised to pay it off yourself to save your credit.

What is the difference between debt negotiation and consolidation?

Description : What is the difference between debt negotiation and consolidation?

Last Answer : Debt Consolidation takes your debt and combines into one single loan, usually tied up in your house equity. Debt Negotiation on the other hand attempts to reduce the amount of debt you have by cutting the total amount you owe.

Does debt consolidation really work?

Description : Does debt consolidation really work?

Last Answer : Debt consolidation can be great for some people if you go through the right company. Do research before you decide on who to use.

How do debt consolidation services work?

Description : How do debt consolidation services work?

Last Answer : With a debt consolidation loan, a company fronts you the money to pay off your debt (or a portion of your debt), so then your monthly debt payments get streamlined into the one loan payment. Your debt consolidation loan ideally has a lower interest rate so you can save on interest as you pay it off.

How much do debt reduction and debt consolidation assistance companies charge for their services?

Description : How much do debt reduction and debt consolidation assistance companies charge for their services?

Last Answer : Debt consolidation and debt reduction companies generally charge a percentage of the debt reduction amount and may also include other fees. There are many different companies that offer these services and their charges and fees may vary.

How do loans and debt consolidation affect credit score?

Description : How do loans and debt consolidation affect credit score?

Last Answer : If you pay your bills on time and in full each month it will help your credit score rise. If you are late on payments and have outstanding payments then your credit score will become lower. Your credit score is an important thing to help you obtain loans such as car loans or a mortgage.

Debt Consolidation Loans Make It Easier to Manage Debt?

Description : Debt Consolidation Loans Make It Easier to Manage Debt?

Last Answer : A debt consolidation loan is a loan taken out to repay several unsecured debts. There are many benefits of debt consolidation loans. The main benefit is that these loans make it easier for consumers to ... of interest you pay over the life of the loan and make it easier to eliminate your debt.

Debt Consolidation- Do It Yourself And Save!!?

Description : Debt Consolidation- Do It Yourself And Save!!?

Last Answer : If you have ever considered a debt consolidation company to handle your debt, then you may want to try doing it yourself. You can do most of the things that debt consolidation companies offer ... has occurred. Do this yourself instead of paying a consolidation company and save hundreds of dollars.

What are some debt consolidation tips?

Description : What are some debt consolidation tips?

Last Answer : Some debt consolidation tips include taking out a loan. This way you will only have to one payment.

Debt Consolidation Calculator?

Description : Debt Consolidation Calculator?

Last Answer : Debt is a ubiquitous problem in America today. According to the Federal Reserve, as of December 2010 total consumer debt stood at $2.4 trillion. This load is divided into revolving and non- ... the consumer their estimated monthly payment. The consumer inputs the amount of each credit card, mortg

Get The Debt Consolidation Company For You?

Description : Get The Debt Consolidation Company For You?

Last Answer : If you are thinking about consolidating your loans into one easy monthly payment, you should first shop around for the best debt consolidation companies. Search for debt consolidation companies online and do ... , compare the various plans offered by each company. Debt can be consolidated in a numbe

Using a Debt Consolidation Calculator?

Description : Using a Debt Consolidation Calculator?

Last Answer : When trying to get a handle on one's finances, one of the best things to do is consolidate one's debts. Consolidating debts can mean that a person pays lower interest rate fees. Using a debt ... having trouble using this sort of calculator. Overall, this is a great tool to use for managing finances.

Does anyone know a good organization for Payday Loan Consolidation?

Description : Does anyone know a good organization for Payday Loan Consolidation?

Last Answer : answer:First, you cannot rob Peter to pay Paul. payday loans are money-suckers. pardon my language, but you will get a better deal at a pawn shop. being behind on one payment makes it a penalty and you ... order to get caught-up in your payments. Scratch payday loans off your list. it's a no-no!

Where can I find information on student loan consolidation?

Description : Where can I find information on student loan consolidation?

Last Answer : During this period, borrowers who make payments separately from your federal loans to one or more lenders (loans are settled before a management entity loans) may be eligible ... information about Conventional Loans Consolidation Direct Loan Program, visit Loan Consolidation Direct Loan Program.

Will you ever be able to payback your student loan debt?

Description : Will you ever be able to payback your student loan debt?

Last Answer : I didn't take out loans for college, Thank goodness. I think graduating with debt is just awful. I was very lucky to have parents who could afford to pay for my college, and who always ... government providing higher education for our young adults, the way the system is set up needs so revamping.

When I compare my school loan statements and my credit card statement and my car loan it appears to me that school loans operate like credit card debt?

Description : When I compare my school loan statements and my credit card statement and my car loan it appears to me that school loans operate like credit card debt?

Last Answer : My loans were like a car payment, if I remember correctly. But have you ever deferred any of your loans or ever had them in forbearance? Depending on the type of loans you have, that would effect the total amount ... to pay them off. Ugh! Can't tell you how glad I am that that's over and done with.

What happens to student loan debt if you immigrate from US to Canada?

Description : What happens to student loan debt if you immigrate from US to Canada?

Last Answer : No. US law is not applicable in Canada.

If I consolidated all my debt, would I have a good chance of getting a credit card or loan with a decent cedit line? How long does it take to consolidate debt?

Description : If I consolidated all my debt, would I have a good chance of getting a credit card or loan with a decent cedit line? How long does it take to consolidate debt?

Last Answer : answer:Your eligibility for a credit card or loan with a decent amount of credit would depend on your credit report and credit history. Lots of open credit accounts, late payments, and number ... the lender you are looking to consolidate with. Both will look into your credit report for information.

If you are on a budget, and are having a hard time paying off debt. Is consolidating your debt with a loan a good option?

Description : If you are on a budget, and are having a hard time paying off debt. Is consolidating your debt with a loan a good option?

Last Answer : Not always. Sometimes it just aggravates the problem. See a debt counselor first.

Jocelyn takes home 2600 per month from her job as a paralegal if you’re only debt obligation or a car loan payment of 480 and a credit card payment of 80 every month is she in danger of credit overload?

Description : Jocelyn takes home 2600 per month from her job as a paralegal if you’re only debt obligation or a car loan payment of 480 and a credit card payment of 80 every month is she in danger of credit overload?

Last Answer : Yes, because the sum of $480 and $80 is greater than $520.2600x20%= 520

What Are Your Options Regarding Student Loan Debt Forgiveness?

Description : What Are Your Options Regarding Student Loan Debt Forgiveness?

Last Answer : Millions of Americans are dealing with student loan debt. For most, that debt will linger with them for several years or decades. Although the average student loan debt is somewhere around $25,000, many ... loan debt gets away from you, there are options designed to help you deal with that debt.

What bank will give me a loan to pay off the debt I accumulated in college?

Description : What bank will give me a loan to pay off the debt I accumulated in college?

Last Answer : Banks such as Bank of America and Fidelity are very good at handing out loans that can be used towards college debts and school tuition, as they have good return policies.

Where can we go to get a loan to pay off debt?

Description : Where can we go to get a loan to pay off debt?

Last Answer : Loans to pay down or pay off debt can be found at a few locations. The interest rate will be higher if you possess a low credit score. Banks. credit unions, or even family members may be able to assist you.

Where can I find more information about loan to pay off credit card debt?

Description : Where can I find more information about loan to pay off credit card debt?

Last Answer : There are a lot of sites offering advice on this topic. The first one I found is here: http://www.fool.com/personal-finance/credit/9-ways-to-pay-off-debt.aspx

Interest paid by the government on the loans raised is called - (1) Debt Servicing (2) Deficit Financing (3) Discounted Budgeting (4) Bridge-loan

Description : Interest paid by the government on the loans raised is called - (1) Debt Servicing (2) Deficit Financing (3) Discounted Budgeting (4) Bridge-loan

Last Answer : (1) Debt Servicing Explanation: Debt service is the amount of money required to make payments on the principal and interest on outstanding loans, the interest on bonds. or the principal of maturing bonds. An ... or company unable to make such payments is said to be "unable to service one's debt."

A trad-able form of loan is normally termed as ________ A. Certificate of Deposit (CD) B. Inter Bank term Money C. Bill Re-discounting D. Debt Instrument E. None of the Above

Description : A trad-able form of loan is normally termed as ________ A. Certificate of Deposit (CD) B. Inter Bank term Money C. Bill Re-discounting D. Debt Instrument E. None of the Above

Last Answer : D. Debt Instrument Explanation: A trad-able form of loan is normally termed as a Debt Instrument. They are usually obligations of issuer of such instrument as regards certain future cash flow representing Interest & Principal, which the issuer would pay to the legal owner of the Instrument.

Which of the following will result in the highest interest rate: a. Issuing Bonds. b. Issuing Stock. c. Current Debt. d. Emergency Loan. e. Both a combination of a and b.

Description : Which of the following will result in the highest interest rate: a. Issuing Bonds. b. Issuing Stock. c. Current Debt. d. Emergency Loan. e. Both a combination of a and b.

Last Answer : d. Emergency Loan.

Interest paid by the government on the loans raised is called (1) Debt Servicing (2) Deficit Financing (3) Discounted Budgeting (4) Bridge-loan

Description : Interest paid by the government on the loans raised is called (1) Debt Servicing (2) Deficit Financing (3) Discounted Budgeting (4) Bridge-loan 

Last Answer :  Debt Servicing

So I have an idea to start a program for students in debt with student loans, how can I start this?

Description : So I have an idea to start a program for students in debt with student loans, how can I start this?

Last Answer : first of all, paragraphs are your friend. it sounds like you want to set up a non-profit agency. You need to file with your state to begin. You must have a plan in place before you file. For ... as a non-profit agency so they can report it as a donation. http://www.usa.gov/Business/Nonprofit.shtml

The idea that irrespective of how a government chooses to increase spending, either by debt financing or tax financing, the outcome will be the same and demand will remain unchanged, is popularly known as: a) Ricardian theory of equivalence b) Ricardian theory of competitive advantage c) Ricardian theory of stability d) None of the above

Description : The idea that irrespective of how a government chooses to increase spending, either by debt financing or tax financing, the outcome will be the same and demand will remain unchanged, is popularly ... b) Ricardian theory of competitive advantage c) Ricardian theory of stability d) None of the above

Last Answer : a) Ricardian theory of equivalence David Ricardo was a British political economist and his most famous theory was that of comparative advantage (along with above theory of Ricardian ... nation should use its resources solely in industries where it has the most international competitiveness

Is this a smart idea, to take a loan out of my 401k for?

Description : Is this a smart idea, to take a loan out of my 401k for?

Last Answer : answer:I think you should start a side fund, if you can, to save money for your venture, rather than to touch your 401K. I was in a financial pinch a while back for about the same amount of money and ... s something that can wait a month or two for you to pull together the money, I'd wait and save.

Would refinancing my auto loan be a good idea if I can not afford the payments/?

Description : Would refinancing my auto loan be a good idea if I can not afford the payments/?

Last Answer : Refi of an auto loan can help to lower montly payments. You can get a lower rate if you refi with a lower interest rate.

What are the best and reputable credit consolidation/management companies?

Description : What are the best and reputable credit consolidation/management companies?

Last Answer : many of these companies are sham organizations that are going to consolidate your debt and charge big fees and interest for doing so. if you're in debt, you're probably better off just calling each ... negotiate a lower rate. try to make payments a little at a time and knock it down slowly.

Consolidation

Description : I want to ask if they will approve of consolidation when the company where I work moves elsewhere and I will not work there anymore, but I do not have a notice period yet.

Last Answer : consolidating means putting something together, settling, etc. It is not clear to me what you imagine the company should approve of you. Whatever it is, no one here can answer you. It is up to the specific company whether to approve something or not.

Which of the following is the consolidation of H. No. 5224 and S. No. 2683? A. RA 9292 B. RA 5734 C. RA 7925 D. RA 6849

Description : Which of the following is the consolidation of H. No. 5224 and S. No. 2683? A. RA 9292 B. RA 5734 C. RA 7925 D. RA 6849

Last Answer : A. RA 9292

This is very important component of Green Revolution. A. Land. B. Labour. C. Land consolidation. D. Water.

Description : This is very important component of Green Revolution. A. Land. B. Labour. C. Land consolidation. D. Water.

Last Answer : D. Water.

The complete absorption of one company by another, wherein the acquiring firm retains its identity and the acquired firm ceases to exist as a separate entity, is called a…. A. Acquisition B. Consolidation. C. Merger D. Spinof

Description : The complete absorption of one company by another, wherein the acquiring firm retains its identity and the acquired firm ceases to exist as a separate entity, is called a…. A. Acquisition B. Consolidation. C. Merger D. Spinof

Last Answer : Acquisition

A film company and a music recording company may choose to combine, believing that the result will be more effective than the sum of the two component parts. What term is used for the benefits? A. Synergy B. Diversification C. IntegrationD. Consolidation

Description : A film company and a music recording company may choose to combine, believing that the result will be more effective than the sum of the two component parts. What term is used for the benefits? A. Synergy B. Diversification C. Integration D. Consolidation

Last Answer : Synergy