gift shop – Cheeky Squirrel http://cheekysquirrel.net/ Mon, 21 Nov 2022 18:55:33 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://cheekysquirrel.net/wp-content/uploads/2021/08/icon-27-150x150.png gift shop – Cheeky Squirrel http://cheekysquirrel.net/ 32 32 Personal loan applications for rising debt consolidation, report finds https://cheekysquirrel.net/2022/11/17/personal-loan-applications-for-rising-debt-consolidation-report-finds/ Thu, 17 Nov 2022 21:20:15 +0000 https://cheekysquirrel.net/2022/11/17/personal-loan-applications-for-rising-debt-consolidation-report-finds/ In these unpredictable times, flexibility is key, especially when it comes to borrowing money for the things we need most. In a pinch, personal loans can be used to cover a number of things, from wedding expenses, surprise medical bills, to major home repairs or funeral expenses. Debt Consolidation can also be a particularly strategic […]]]>

In these unpredictable times, flexibility is key, especially when it comes to borrowing money for the things we need most. In a pinch, personal loans can be used to cover a number of things, from wedding expenses, surprise medical bills, to major home repairs or funeral expenses.

Debt Consolidation can also be a particularly strategic way to use them, as the process allows borrowers to better organize their debts and typically involves a lender sending funds to creditors on your behalf. Consolidating debt through a personal loan also allows borrowers to benefit from a lower interest rate while they repay the loan, which saves a lot of money over the life of the loan. .

A recent study by LendingTree reported that between the third quarter of 2021 and the third quarter of 2022, applications for personal loans in general increased by 12.3%, while applications for personal loans to use for debt consolidation increased by 29.1% during this period.

The report highlighted the increase in annual percentage rates, or APRs, coinciding with interest rate hike by the Federal Reserve as the main reason for the recent spikes.

Below, Select details what you can do if you want to take out a personal loan for debt consolidation purposes.

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How to apply for a personal loan

Before applying for a personal loan, you will want to check your credit score. Although there are several lenders, such as Reached and OneMain Financialwho will always consider borrowers with low credit ratings or one poor credit historyyou may have to pay a higher interest rate. However, those with higher credit scores will generally have to pay a lower interest rate.

Beginner personal loans

  • Annual Percentage Rate (APR)

  • Purpose of the loan

    Debt consolidation, credit card refinancing, marriage, moving or medical

  • Loan amounts

  • Terms

  • Credit needed

    FICO or Vantage score of 600 (but will accept applicants whose credit history is so poor that they have no credit score)

  • Assembly costs

    0% to 8% of target amount

  • Prepayment penalty

  • Late charge

    Greater of 5% of monthly amount past due or $15

OneMain Financial Personal Loans

  • Annual Percentage Rate (APR)

  • Purpose of the loan

    Debt consolidation, big expenses, emergency expenses

  • Loan amounts

  • Terms

  • Credit needed

  • Assembly costs

    Flat fee from $25 to $1,000 or percentage ranging from 1% to 10% (depending on your state)

  • Prepayment penalty

  • Late charge

    Up to $30 per late payment or up to 15% (depending on your state)

Click here to see if you are prequalified for a personal loan offer. Conditions apply.

Next, you’ll want to determine how much money you actually need to borrow. If you are consolidating debt, simply add up all of your balances to get a total.

While the smallest personal loan amounts — with a lender such as PenFed Credit Union, for example – tend to start around $600, minimum amounts closer to the $1000 mark are often more common. Be careful not to ask for more than you need, as you will eventually have to pay back all the money.

PenFed Personal Loans

  • Annual Percentage Rate (APR)

  • Purpose of the loan

    Debt consolidation, home improvement, medical bills, car financing and more

  • Loan amounts

  • Terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

Next, you’ll want to do your homework by researching and compare rates, fees and conditions from different personal loan providers. Some lenders will let you check your rate without hurting your credit score before you even apply.

Ideally, you’ll want to go with a lender that offers a low interest rate with no fees (or the least amount of fees) and a term that best fits your budget. LightStream and Marcus of Goldman Sachs are each known to offer personal loans with no origination fees, late fees or prepayment fees.

LightStream Personal Loans

  • Annual Percentage Rate (APR)

    5.99% to 21.49%* when you sign up for autopay

  • Purpose of the loan

    Debt consolidation, renovation, car financing, medical expenses, marriage and more

  • Loan amounts

  • Terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

Marcus by Goldman Sachs Personal Loans

  • Annual Percentage Rate (APR)

    6.99% to 24.99% APR when you sign up for autopay

  • Purpose of the loan

    Debt consolidation, home improvement, wedding, moving and moving or vacation

  • Loan amounts

  • Terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

When you decide which lender you want to go with, submit your application and wait for approval, which can take anywhere from one to a few days. After that, just wait for the funds to be paid out.

With debt consolidation, lenders will usually disburse the money directly to up to 10 of your chosen creditors – you only need to provide their information and how much money each needs to be sent. This way, you will simply be responsible for reimbursing your personal lender.

Get matched with personal loan offers.

At the end of the line

Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff only and have not been reviewed, endorsed or otherwise endorsed by any third party.

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Refinance an existing credit with debt consolidation https://cheekysquirrel.net/2022/11/15/refinance-an-existing-credit-with-debt-consolidation/ Tue, 15 Nov 2022 13:07:46 +0000 https://cheekysquirrel.net/2022/11/15/refinance-an-existing-credit-with-debt-consolidation/ Sponsored content Loan problems? You can refinance an existing credit with debt consolidation Credit cards represent a large part of our daily financial transactions. The ability to spend now and pay later is something that comes in handy most often. Whether it’s daily dinners, weekend getaways, or any […]]]>

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Loan problems? You can refinance an existing credit with debt consolidation


Credit cards represent a large part of our daily financial transactions. The ability to spend now and pay later is something that comes in handy most often. Whether it’s daily dinners, weekend getaways, or any ambitious need, we rely heavily on credit cards.

A significant 26.5% increase in transaction volume, value and average ticket size has been observed over the past year. And with the big announcement of credit card-enabled UPI payments, our reliance on these debt instruments will become inevitable.

Likewise, personal loans have been recognized as a trump card in planned or unplanned events. Along with enticing offers, brands and lenders have raised the bar by offering seamless onboarding journeys, end-to-end digital processes, and instant access to credit in minutes.

While debt instruments give you the freedom to spend money you haven’t yet earned, you need to be very careful not to abuse it. They are a blessing as long as you make timely payments and maintain them prudently. A little misunderstanding and you could find yourself in a debt trap situation.

Comfort from spiraling debt

As part of a prudent financial plan, you need to make sure you don’t have multiple debts at once. If you have multiple debts or credits that are spiraling out of control, debt consolidation is your solution.

Debt consolidation is a financial tactic that helps consolidate multiple loans and unpaid credit card bills into a single personal loan. Just be aware of its existing loan foreclosure policies. Using a single personal loan to pay off all dues has a plethora of advantages.

It is rather easy to repay a loan compared to several debts. This reduces the hassle of dealing with multiple lenders and due dates falling on different parts of the monthly calendar. Failure to pay can result in heavy penalties.

Low-Rate Loan Solution

We are well aware of the interest rates that credit cards attract. Not to mention the number of other costs involved. Debt consolidation helps convert all existing debt from 36-45% interest rate to a personal loan at 15-18% interest rate. Wiping out all high-interest debt with just one loan can help save quite a bit of money.

Since servicing a single loan will become a breeze, one due date, one lender to attend, and one EMI to repay, your risk of default will be reduced. Making payments on time definitely improves your credit score. Also, the lower the debts, the better the opinion of your credit profile.

Holding on to debts that you cannot afford can put you in a difficult financial situation. Although debt consolidation can be a temporary relief, it is not a permanent solution to financial problems. Be sure not to use debt securities as an extension of your paycheck and especially not to be enticed by enticing offers and rewards. Always monitor your spending habits and plan your borrowings to maintain your financial health at all times.

Data source – Reserve Bank of India (RBI) data

Learn more about Loan Tap here.

The Federal assumes no editorial responsibility for this content.

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How to choose the best debt consolidation lender? https://cheekysquirrel.net/2022/11/14/how-to-choose-the-best-debt-consolidation-lender/ Mon, 14 Nov 2022 22:41:15 +0000 https://cheekysquirrel.net/2022/11/14/how-to-choose-the-best-debt-consolidation-lender/ The Good Brigade/Getty Images Debt consolidation is combining multiple debts into one loan to reduce the number of bills you pay each month. Ideally, when consolidating debt, you also reduce the interest rate you pay and you can ultimately pay off the debt faster. If you are considering debt consolidationYou should start by deciding which […]]]>

The Good Brigade/Getty Images

Debt consolidation is combining multiple debts into one loan to reduce the number of bills you pay each month. Ideally, when consolidating debt, you also reduce the interest rate you pay and you can ultimately pay off the debt faster.

If you are considering debt consolidationYou should start by deciding which method is best and evaluating your financial and credit health to determine if you are a good candidate for debt consolidation. Once you’ve taken these steps, you can move on to researching and evaluating lenders to find the best solution to help you pay off those crippling debt balances sooner.

Identify the type of debt consolidation that suits you best

The first step is to evaluate debt consolidation options and select the method that is best for you. Common methods include:

  • Personal loan: Many lenders offer debt consolidation loans or personal loans designed to help you pay off your debts faster and save a lot of interest. Debt consolidation loans usually come with a fixed interest rate and a loan term of 1 to 10 years. You are free to use the funds as you see fit, but the idea is to pay off your debt balance with the loan proceeds.
  • Zero APR credit card: Also known as balance transfer credit cards, these debt products can help you save a significant amount in interest and eliminate high-interest debt balances faster. They are generally reserved for consumers with a good or excellent credit rating. You should only consider this option if you can repay the balances you transfer to the card during the introductory period. Otherwise, you could end up paying a fortune in interest.
  • Home Equity Loan: You can convert up to 85% of your home equity into cash and use it to consolidate your debt with a home equity loan. It acts like a second mortgage and comes with a repayment period of between five and 30 years. The interest rate is also fixed and lower than most credit cards, but the main drawback is that your home guarantees these loan products. Therefore, you could lose your property to foreclosure if you fall behind on loan repayments.
  • Home Equity Line of Credit (HELOC): A HELOC is a home equity loan, but you will not receive the loan proceeds in a lump sum. Instead, you’ll have access to a pool of money that you can draw on as needed during the 10-year draw period. Interest-only payments are also required during the drawdown period on most HELOCs. Once completed, you will repay in monthly installments over a term of up to 20 years. The amount of the monthly payment can fluctuate since the interest rate on HELOCs is generally variable.

It’s important to select the best option for your needs, as this will help determine the type of lender you choose. Not all lenders offer the same borrowing options. Once you’ve decided on a consolidation option, you can analyze each lender’s interest rates, loan terms, and fees to determine which offers make the most financial sense for your goals.

Determine your qualifications

Lenders want to know that you are creditworthy and have the means to make timely payments on the loan or credit card you are using to consolidate your debt. This means you can expect the lender to assess your credit score and credit history to determine if you have a history of responsible bill paying.

Lenders will also look at your debt-to-equity ratio to determine if you can afford monthly repayments and if you’re not taking on more than you can handle. Lenders also want to see verifiable proof of income and will be looking for long-term financial stability.

Also, be aware that the most competitive interest rates are generally reserved for borrowers with a good or excellent credit rating. A lower credit score doesn’t always mean you’ll automatically be denied a loan or credit card. Still, you will usually get a high interest rate if approved to offset the risk of default posed to the lender or creditor.

Ultimately, you may find that it doesn’t make sense to consolidate your debt if you have bad credit if you only qualify for a higher rate than you’re currently paying.

Shop around for lenders

Look for lenders that offer the type of debt consolidation you are looking for. Most offer online prequalification with a flexible credit application. If you’re considering a debt consolidation loan, you’ll also get an overview of potential loan costs to compare your options with.

In addition to checking online lenders when shopping, it may be a good idea to check the options available from banks or credit unions. You may qualify for more favorable loan terms if you have a pre-existing relationship with a bank or lender.

Regardless of the type of lenders you include on your shortlist, prequalification takes the guesswork out of finding lenders willing to work with you. Plus, you’ll avoid going to lenders who might deny you a loan or credit card and get an unnecessary credit check.

Assess the lender

Once you have a shortlist of at least three lenders, it is a good idea to compare them side by side and compare the factors below, which will impact the overall cost of your loan, your ability manage it and the customer service you receive:

  • Annual Percentage Rates (APR): This figure represents the actual annual cost of borrowing. It includes interest and fees determined by your credit score and debt-to-equity ratio. Knowing this information for each loan option can help you assess which one will cost the least.
  • Lender fees: Some lenders charge origination fees ranging from 1-10% of the loan amount. Even if the APR is on the lower end, high origination fees might make a different loan product the more practical choice. Similar to APR rates, knowing each lender’s fees can help you determine which loan is more expensive or best suited for you.
  • Characteristics of the lender: Top lenders also have an online dashboard where you can monitor your account, schedule payments, and chat with customer service representatives. It’s also great if free educational resources can help you manage your credit and overall financial health more effectively. Understanding the features and customer service offerings of each lender gives you a better idea of ​​which loan will be easier to manage.
  • Customer reviews: You want to select a reputable lender with a proven track record of providing quality service. Checking online reviews from past clients can be a good way to gain peace of mind before signing on the dotted line with a lender. Seeking accreditation from the Better Business Bureau (BBB) ​​may also be a good idea.

At the end of the line

Before applying for a loan or credit card to consolidate your debt, weigh your options to decide which type of debt consolidation is best for you. Plus, get prequalified with at least three lenders to see potential loan quotes and compare your options. This will allow you to make an informed decision, reach your debt repayment goals faster, and save money.

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The dirty secrets of debt consolidation loans revealed https://cheekysquirrel.net/2022/11/04/the-dirty-secrets-of-debt-consolidation-loans-revealed/ Fri, 04 Nov 2022 16:00:00 +0000 https://cheekysquirrel.net/2022/11/04/the-dirty-secrets-of-debt-consolidation-loans-revealed/ Things If you are considering a debt consolidation loan, you need the advice of a financial mentor. Rob Stock is a Stuff business journalist specializing in money and consumer issues. ANALYSIS: The dirty secrets of debt consolidation loans have been revealed in documents sent to the government. They can be interpreted as sending a clear […]]]>
If you are considering a debt consolidation loan, you need the advice of a financial mentor.

Things

If you are considering a debt consolidation loan, you need the advice of a financial mentor.

Rob Stock is a Stuff business journalist specializing in money and consumer issues.

ANALYSIS: The dirty secrets of debt consolidation loans have been revealed in documents sent to the government.

They can be interpreted as sending a clear message to borrowers who are considering taking out one: you are experiencing a financial emergency and need expert help.

A debt consolidation loan is a loan that people take out to pay off their other debts. The theory goes that one loan is easier to manage than multiple loans.

But if you are in debt, it may be time to question your own judgment and financial skills, and get free, independent advice from a budgeting service.

READ MORE:
* New rules on home loans force some people to turn to second-tier lenders
* Borrower complains after $41,500 turned into $59,500 during his jail term
* Retired banker protests banks’ ‘takeover’ of loans

The dirty secrets of debt consolidation loans have been exposed in submissions sent to the government by financial mentors from budgeting departments across the country opposed to plans to make it easier for lenders to sell.

Some mentors said they had never seen a debt consolidation loan that made things better for a borrower.

They said a typical trick of lenders was to refinance short-term debts into a single, longer-term debt consolidation loan, on which they could earn interest over a longer period.

Financial research website Moneyhub has compiled 12 credit card “sacred rules” that every cardholder should follow, if they don’t want to fall victim to easy and costly consumer debt.

Borrowers were charged new loan fees, and sometimes lenders sold them low-value loan repayment insurance, or waivers, which are like insurance, except they’re not covered by law. which are supposed to keep insurers honest and financially viable.

Mentors said unsecured loans were sometimes refinanced into debt consolidation loans secured by property, and not always the property of the borrower.

“We also see many debt consolidation loans secured by the assets of other family members. This has a huge negative impact on family dynamics and everyone’s mental well-being. We call it STD – sexually transmitted debt,” said Andrew Henderson and Charlotte Whitaker of the Dunedin Budget Advisory Service.

Collateral could be “clawed back” by lenders if borrowers do not repay.

Some mentors reported seeing interest-free debts such as buy now, pay later (BNPL) loans, family loans, some debt collection debts, education debts, health debts, electricity debts and even interest-free debts owed to the government refinanced into debt consolidation loans at higher interest rates.

Some mentors even claimed that “irresponsible” loans, granted to borrowers who could not reasonably be expected to repay them without suffering hardship, were converted into new loans through debt consolidation.

Under responsible lending laws, these irresponsible loans should be unwound, not sneakily converted into new loans.

The dirty secrets of debt consolidation loans have been exposed in submissions sent to the government by financial mentors from budgeting services across the country.

Things

The dirty secrets of debt consolidation loans have been exposed in submissions sent to the government by financial mentors from budgeting services across the country.

The mentors also said that sometimes the loans repaid by debt consolidation loans were on revolving loan facilities like BNPL accounts, credit cards or store cards.

These accounts were not always closed, and vulnerable and desperate households ended up having access to even more debt.

Henderson and Whitaker said, “In our view, a debt consolidation loan is not a loan, but a product used to achieve client betterment.”

Where it worked, it worked with low-interest, interest-free debt consolidation loans from nonprofit lenders like Ngā Tangata Finance and Good Shepherd, they said.

Lenders simply saw it as another way to keep whānau in debt, for a longer period, with collateral and no other options, they said.

The unequivocal conclusion is that debt consolidation should be approached with extreme caution.

GOLDEN RULES:

  • Debt consolidation loans are a symptom of financial distress
  • Beware of the Dirty Tricks of Debt Consolidation
  • Get independent advice

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Best Business Debt Consolidation Loans of 2022 – Forbes Advisor https://cheekysquirrel.net/2022/11/01/best-business-debt-consolidation-loans-of-2022-forbes-advisor/ Tue, 01 Nov 2022 18:40:49 +0000 https://cheekysquirrel.net/2022/11/01/best-business-debt-consolidation-loans-of-2022-forbes-advisor/ To consolidate your business debt, take out a new business loan and use the funds to pay off your existing debt from credit cards and other loans. This merges all your debts into one loan with one monthly payment, often with a lower interest rate and more favorable terms, depending on your creditworthiness. There are […]]]>

To consolidate your business debt, take out a new business loan and use the funds to pay off your existing debt from credit cards and other loans. This merges all your debts into one loan with one monthly payment, often with a lower interest rate and more favorable terms, depending on your creditworthiness.

There are several ways to consolidate business debt, but business debt consolidation loans and balance transfer credit cards are the most common methods.

Commercial debt consolidation loans

Commercial debt consolidation loans are available from traditional financial institutions and online lenders. Some lenders specialize in debt consolidation while others provide general business loans that you can use for a variety of purposes.

Depending on the lender, business debt consolidation loans can have lower interest rates than other business loans, making them an attractive option for businesses that want to lower the cost of their debt.

Business credit cards with balance transfer

Business credit cards with balance transfer involves transferring balances from existing business credit accounts to a new credit card with a lower interest rate. As with consolidation loans, this can be an effective way to reduce the cost of your debts, especially if you qualify for a 0% APR introductory period. To take advantage of these benefits, you must pay off the entire debt balance before the end of the 0% interest period, and you may be required to pay a balance transfer fee.

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Consolidation could help homeowners with debt worries https://cheekysquirrel.net/2022/10/21/consolidation-could-help-homeowners-with-debt-worries/ Fri, 21 Oct 2022 09:00:52 +0000 https://cheekysquirrel.net/2022/10/21/consolidation-could-help-homeowners-with-debt-worries/ “We could see more borrowers who don’t meet the criteria of traditional lenders or who have accumulated debt that has worsened their credit score.” October 10 marks World Mental Health Day and as we move through the cost of living crisis, we will likely continue to see rising financial debt sadly taking a toll on […]]]>

“We could see more borrowers who don’t meet the criteria of traditional lenders or who have accumulated debt that has worsened their credit score.”

October 10 marks World Mental Health Day and as we move through the cost of living crisis, we will likely continue to see rising financial debt sadly taking a toll on the mental well-being of borrowers.

A recent survey by YouGov for StepChange Debt Charity found that 45% of all UK adults – the equivalent of 23 million people – have struggled to meet household bills and credit commitments in recent months , compared to 30% in October. 2021 and 15% in March 2020.

This means that the number of people struggling with their financial commitments has increased by eight million in less than a year.

His research shows that 12% of adults – the equivalent of six million people – are currently behind on at least one household bill, with 2.4 million people reporting being behind on their energy bill.

Additional research from the charity shows that 48% of adults say their mental health has been negatively affected by the rising cost of living, rising to 83% for those in arrears with household bills.

As bills continue to climb this winter and more borrowers potentially find themselves in the red or taking out more credit, its essential advisors are aware of the options available to homeowners, especially after a period where home values ​​have gone up.

Some advisors may still be hesitant to consider a second charge for debt consolidation purposes, perhaps for fear of increasing the owner’s debt. While a second charge may not be the solution for all borrowers looking to consolidate their expenses, it could be a beneficial option for some.

A homeowner who has lost their job, for example, may have temporarily started to fall behind with their regular loan or household bills. As a workaround, they may have taken on more loan or credit card debt, resulting not only in multiple monthly repayments, but also in additional late fees, hurting their credit score.

Although the homeowner has since started a new permanent job, his poor credit rating may mean he cannot consolidate his debt through a mortgage.

A second charge for debt consolidation can help such a borrower regain financial control of their debts by consolidating them into one monthly payment and potentially reducing their monthly expenses. By assessing a borrower’s financial situation on an individual basis and looking at their current situation – not just their credit history – we can make an informed loan decision.

With the UK in the midst of heightened economic uncertainty, we could see more borrowers who do not meet the criteria of traditional lenders or who may have accumulated debt that has worsened their credit score.

The Bank of England’s latest Money & Credit report continues to show UK borrowers’ reliance on credit. On a net basis, a further £1.1bn of consumer credit was borrowed in August, following £1.5bn of borrowing in July.

This was split between £0.7bn on credit cards and £0.4bn via other forms of consumer credit. The annual growth rate of all consumer credit remained at 7% in August; the highest rate since March 2019, while the annual growth rate of credit card borrowing also remained unchanged at 12.9%, the highest since October 2005.

We are unlikely to see any significant decline in these numbers given the upcoming rise in mortgage rates and bills.

As borrowers continue to take out credit, for some a deterioration in their financial situation will also mean the same for their mental wellbeing and it is imperative that we are equipped to help homeowners with their borrowing options.

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What are the alternatives to a debt consolidation loan? https://cheekysquirrel.net/2022/10/13/what-are-the-alternatives-to-a-debt-consolidation-loan/ Thu, 13 Oct 2022 15:34:36 +0000 https://cheekysquirrel.net/2022/10/13/what-are-the-alternatives-to-a-debt-consolidation-loan/ A debt consolidation loan is designed to streamline multiple debts into one monthly payment. This can be a good option for those juggling multiple debts with different repayment dates, as it makes debt management easier and reduces the risk of missing payments. However, debt consolidation loans are not the only way to manage debts and […]]]>

A debt consolidation loan is designed to streamline multiple debts into one monthly payment. This can be a good option for those juggling multiple debts with different repayment dates, as it makes debt management easier and reduces the risk of missing payments. However, debt consolidation loans are not the only way to manage debts and may not be the most suitable option for you.

What is a debt consolidation loan?

Debt consolidation loans are designed to streamline multiple balances into one monthly payment – they make it easier to manage your debt and reduce the amount of interest you pay. Taking out a debt consolidation loan means that you transfer all your existing debts onto one loan, so there is only one payment to manage and only one interest rate.

One of the reasons people choose to take out a debt consolidation loan is that it can sometimes be cheaper.

Personal loans, including short-term loans and even longer-term loans, generally offer low interest rates, which means transferring all your debts into one loan payment could mean that you pay less interest per month, saving you money in the long run. However, the most favorable interest rates are generally reserved for those with good credit, which means that for borrowers whose credit is not perfect, it may not be cheaper to transfer their debt to a Personal loan.

If not, how could you consolidate your debts?

If you’re not sold on the idea of ​​a debt consolidation loan, there are still many different options that might be a better option depending on your personal financial situation:

1. Pay off cards with the highest rate first

Before deciding which strategy to choose to pay off your debt, make sure you know exactly how much you owe and the interest rates for different types of debt. About 38% of American credit card holders are unaware of the interest rates associated with their credit cards (in the UK there are charities that can help you when you are in debt). The first step should always be to check out the different interest rates so you know which ones charge the highest interest, these should be the ones you pay off first in order to start managing your debt more effectively.

Once you have identified the cards with the highest interest, make the minimum payment required for each of your cards. Then any remaining money you have you can use to pay off the card with the highest interest rate. If you pay off your cards by APR order rather than by balance, it can help you get started with your debt management faster and could save you money.

2. Move your balance to 0% interest

If you have a good credit rating, moving your debt to a card with a 0% introductory rate might be a smart option. Some credit cards offer an introductory rate of 0% which can last for 12 to 18 months. If you choose this option, it means you can work on paying off your debt quickly without having to pay interest. Before you do this, you need to check if there are any fees charged for transferring to another card and how much those fees would be.

It should be noted that this is only a profitable method if you are able to pay off your entire balance before the end of the 0% introductory period, otherwise you may end up paying a large amount of interest.

3. Increase your minimum payment

Many cardholders make the required minimum payment per month in order to manage their credit card debt. While this avoids paying interest on the account, it does not help tackle your debt. However, if you are able to increase the minimum payment or double the minimum amount required, you could pay off your debt much faster.

4. Spend extra money on paying off your debt

Rather than paying off your credit card interest rates, it might be better to spend money on reducing the total value of your credit card debt. Even if you borrowed as little as $1,000 by credit card, paying off your debt sooner will save you money in the medium to long term, with less interest to pay. This will help you pay off your debts faster and get into the black sooner.

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Debt consolidation: how to get out of holiday debt https://cheekysquirrel.net/2022/10/10/debt-consolidation-how-to-get-out-of-holiday-debt/ Mon, 10 Oct 2022 20:49:06 +0000 https://cheekysquirrel.net/2022/10/10/debt-consolidation-how-to-get-out-of-holiday-debt/ If you’re looking to get rid of your holiday debt quickly, a smart strategy is to consolidate all your debt into a new loan with more favorable terms. This can guarantee you a lower interest rate, which means you’ll have a smaller monthly payment and can pay off your debt faster. Different debt consolidation options […]]]>

If you’re looking to get rid of your holiday debt quickly, a smart strategy is to consolidate all your debt into a new loan with more favorable terms. This can guarantee you a lower interest rate, which means you’ll have a smaller monthly payment and can pay off your debt faster. Different debt consolidation options can help you pay off your vacation debt faster.

The holidays are over and now it’s time to pay the piper. If you’ve gone a little overboard with your spending, you’re not alone. According to a recent study, the average American has a vacation debt of $1,000.

Debt can be a real inconvenience, especially during the holidays. But don’t worry, there are things you can do to control your vacation debt. Check out these tips and get back on track.

Debt Consolidation: Vacation Debt

As the holidays approach, many Californians are beginning to feel the pressure of freebies and travel expenses. For some, that means racking up credit card debt, using buy-it-now services, pay later, or taking out personal loans. Although the holiday season is a time of joy for many, it can also be a source of financial stress for some.

It is important to keep track of what you owe.

Photo credit: Trismegistus san

Start by making a list of all the debts you have. Indicate the type of debt, the name of the account and the balance due. This will give you a good overview of your overall debt situation. If you have multiple debts from different sources, be sure to include them all.

It’s important to stay organized when it comes to your finances and know how much you owe on each debt. Write down the minimum payment amount, interest rate, and payment due date for each.

Staying organized with your finances is key to avoiding astronomical bills. Make a list of all the debts you owe, including the amount, minimum payment, interest rate, and due date for each one.

Make it affordable

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Debt consolidation can be a difficult thing to deal with, but there are ways to make it more manageable. One of these ways is the 50/30/20 budget. With this budget, you allocate 50% of your monthly income to necessities, 30% to needs, and 20% to savings and debt repayment. This can help you better manage your income and expenses and ultimately help you get out of debt.

Make a payment plan

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Start by understanding how much you owe and what your budget is. Next, create a repayment plan that will help you pay off your vacation debt as quickly as possible. making more than the minimum monthly payments will help you reach your goal faster.

You don’t have to pay more than the minimum on all your debts at this time. You can focus on one debt at a time using the snowball or debt avalanche method.

Debt Snowball vs. Debt Avalanche: What’s the Best Way to Get Out of Holiday Debt? If you are considering two different debts, one with a higher interest rate and one with a lower interest rate, which should you pay off first?

The debt snowball method says that you must first pay off the debt with the smallest balance while making the minimum payments on the others.

Check out ways to get out of holiday debt

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Here are some tips to help you pay off your debt faster:

Earning more money gives you the opportunity to pay off your debts faster. You can earn extra money on the side (for example, by walking your dog or using a cashback app).

Try to negotiate with creditors

If you are unhappy with the interest rate charged to your credit card, call your issuer. It might pay off – you might be able to get a lower rate or more favorable terms.

Consolidation optional

Debt consolidation can be a useful way to manage multiple debts by combining them into one payment. This can help reduce the total amount you pay over time and get your finances back on track, making it easier to manage. Usually you will need a good or excellent credit score to qualify. Even if you have bad credit, there are options to help lower your interest rate. By doing this, you can pay off your debt faster and start fresh.

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Why should you get a debt consolidation loan now https://cheekysquirrel.net/2022/09/29/why-should-you-get-a-debt-consolidation-loan-now/ Thu, 29 Sep 2022 20:45:28 +0000 https://cheekysquirrel.net/2022/09/29/why-should-you-get-a-debt-consolidation-loan-now/ Debt consolidation loans allow borrowers to combine their debts into one loan with a lower interest rate. Getty Images/iStockphoto No one likes to pay more than their fair share. Whether you have a mortgage, student loan, Personal loan or any type of insuranceit is important not to overpay. For borrowers in debt, this is particularly […]]]>
Debt Consolidation Approved Form Shows Agreed Loan Approval - 3d illustration
Debt consolidation loans allow borrowers to combine their debts into one loan with a lower interest rate.

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No one likes to pay more than their fair share. Whether you have a mortgage, student loan, Personal loan or any type of insuranceit is important not to overpay.

For borrowers in debt, this is particularly important. If you end up with a high interest rate, it will be that much more difficult to pay what you owe and the outstanding balance can quickly become prohibitive.

Fortunately, consumers have debt consolidation loan options. Debt consolidation loans allow borrowers to combine their debts into one simple loan with a lower interest rate. The advantages of this unique financial option are multiple and significant.

If you think you could benefit from a debt consolidation loan, act now and start saving money.

Here are three reasons why you should get a debt consolidation loan now.

You want a lower interest rate

This is arguably the best reason to get a debt consolidation loan. By consolidating your debts into one loan with a lower interest rate, you can start saving money right away. But you will also save significant sums in the long run, as the loan will be adjusted into a more manageable sum.

This is especially useful for those with high interest credit cards. The average interest rate on a 24-month personal loan was 8.73%, according to recent data from the Federal Reserve. Compare that to the average credit card interest rate of 16.65% – almost double!

Check the rates you currently have. Then compare the rates to a debt consolidation loan. Getting started today is easy.

You want to improve your credit score

Your credit score affects so many aspects of your financial life. If you’ve put yourself in a hole with credit cards or other debt, you’ve probably damaged your score, making it harder to get better rates in the future.

A debt consolidation loan helps solve this problem by bringing all your debts together under one roof. After a series of one-time payments on the loan (and assuming you don’t accumulate debt elsewhere), you will begin to improve your credit.

Lenders like to see regular, on-time payments. You may be doing this now with one or two of your debts, but are you doing this with all of them? However, if you combine them into one debt consolidation loan, you will be able to make payments more easily and boost your score In the process.

You want an end date

One of the most frustrating things about being in debt is that you feel like you’ll never get out of it. This is especially true for credit cards where there is no real time limit (except for making a minimum payment). Borrowers can get themselves under water by paying only their minimum monthly card debt – all while the high interest on their cards adds up.

With a debt consolidation loan, however, there is a fixed repayment date so the borrower knows exactly when they can stop paying. So even if the debt you have consolidated is significant, you will at least know when it will be eliminated.

Get a free consultation and see if a debt consolidation loan is right for you.

Other Debt Relief Alternatives

If you are currently in debt, there are options other than debt consolidation loans to consider.

Credit cards with balance transfer work the same way and can also help you save money. Refinancing by collection (and mortgage refinance in general) may also be beneficial. Older homeowners can also get money to pay off their debts with a reverse mortgage.

Do you have other questions about debt consolidation loans? Want to explore all of your debt relief alternatives? Speak with an expert now who can help you.

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4 reasons to take out a personal loan for debt consolidation https://cheekysquirrel.net/2022/09/21/4-reasons-to-take-out-a-personal-loan-for-debt-consolidation/ Wed, 21 Sep 2022 12:56:13 +0000 https://cheekysquirrel.net/2022/09/21/4-reasons-to-take-out-a-personal-loan-for-debt-consolidation/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. If you’re juggling high-interest credit card debt, […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

If you’re juggling high-interest credit card debt, taking out a debt consolidation loan to pay off those balances offers 4 major benefits. (Shutterstock)

You can consolidate high interest credit card debt many ways, including home equity products (if you own a home), balance transfer credit cards, and personal loans.

Here are four reasons why you might consider a debt consolidation loan to settle your high-interest debts.

If you want to consolidate your debt, Credible makes it easy to view your prequalified personal loan rates from various lenders, all in one place.

What is debt consolidation?

Before we dive into why a debt consolidation loan makes sense, let’s define what it is. Debt consolidation consolidates multiple debts into one account with one easy-to-manage payment. It’s a strategy you can use to simplify the debt repayment process and potentially save money on interest. If you are overwhelmed with debt, debt consolidation can be a smart move.

Although you can consolidate your debts in several ways, the personal debt consolidation loan is one of the most popular. With a debt consolidation loan, you take out a new loan to repay one or more unsecured debts that you already have. It gives you a manageable monthly payment so you don’t have to worry about juggling multiple debts, interest rates, and payment due dates.

It is important to understand that while a debt consolidation loan may treat the symptoms of your financial problems, it will not address the cause. Think of it as a tool to give yourself some breathing room so you can get back on your feet and devise a long-term plan for a better financial future.

ADVANTAGES AND DISADVANTAGES OF DEBT CONSOLIDATION

1. Reduce the overall cost of your debt

A Personal loan can help you reduce the cost of your debt in two ways. If you’re able to lock in a lower interest rate than you currently have on all of your debt, you can save hundreds or even thousands of dollars in interest.

Plus, a personal loan gives you a specific end date for paying off your debt. It can help you stay focused on your goals and pay off your debt faster.

Visit Credible for compare personal loan rates from various lenders, without affecting your credit.

2. Refinance your debt without risking your home or other assets

Although home equity products – such as home equity loans and home equity lines of credit (HELOC) – may have lower interest rates than personal loans, they have some disadvantages you should consider:

  • Deplete your home equity — Since a home equity loan relies on the value you have built up in your home, you could find yourself under water on your mortgage and owing more than your property is worth if the value of your house goes down. This could be a serious problem if you are planning to move soon.
  • Put your home at risk — A home equity loan puts your home as collateral. If you fail to make your payments, you could lose your home through the foreclosure process.
  • May not qualify — Most lenders will not give you home equity loan or HELOC unless you have some equity in your home. Your equity is the difference between what you owe on your mortgage and the current value of your home. Although each lender has their own criteria, most will be looking for at least 15% equity.

A debt consolidation loan, on the other hand, requires no collateral, which means you won’t have to put your house, car or other assets on the line. You can also lock in an interest rate below the one you could get with a credit card.

Your rate will likely be fixed instead of variable (as it would be with many HELOCs), so you can budget your payments in advance. And if you have good or excellent creditit may be easier to qualify for a debt consolidation loan than a home equity product.

3. Reduce your monthly payments

If you have a lot of high-interest credit card debt and take out a personal loan with a lower interest rate, you may be able to lower your monthly payment amount. This can free up your cash flow and give you more money to spend on your emergency fund and other financial goals, such as saving for a home or for retirement.

Choosing a personal loan with a longer term can also result in lower monthly payments. But keep in mind that if you go this route, you will pay more interest over time.

4. Simplify your debt

When juggling multiple loans and credit cards, it’s easy to miss a bill payment. Missing a single payment can impact your credit.

A debt consolidation loan allows you to combine several monthly payments into a single loan with a fixed interest rate. It can make the debt refund much more manageable process and reduce your risk of missed payments. Many personal lenders also offer discounts for setting up automatic payments, which will ensure that your monthly loan payments are made on time.

If you’re ready to apply for a debt consolidation loan, Credible makes it quick and easy compare personal loan ratess to find the one that best suits your needs.

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