Consolidate Loans Info...debt consolidation, debt management, credit repair- news, articles...

Article : Debt consolidation: cure or continued credit problems?

2008-07-19T05:57:00.002-07:00

By Jenny McCune • Bankrate.com

Interest rates haven't been this low for decades, tempting some consumers to take on additional debt to ease existing credit woes. The goal is to consolidate various higher-interest balances into one, easier-to-handle and less-costly package.

But be careful of what looks to be a quick fix.

"You're getting symptomatic relief, not a credit cure," says Chris Viale, general manager of Cambridge Credit Corp., a nonprofit credit counseling agency based in Agawam, Mass....

read all from bankrate.com

Debt Consolidation Articles and Advices from bills.com

2008-07-19T05:57:00.001-07:00

Bad Debt? Bill Consolidation Can Help
Bill consolidation is one of the many ways to make payments easier. Discover how to make it easier
Debt and bill consolidation help

Consolidate ALL Your Bills Easily
Learn how to consolidate all bills and make your debt easier to manage. The tips are here.
How to consolidate all bills

Consolidate a Credit Card Bill
If you have high credit card bills, consolidation might be the solution. Learn about consolidating credit cards.
How to consolidate credit card bill

Bill Consolidation Loan
Will a bill consolidation loan help or hurt your finances? Learn all the details here.
About a bill consolidation loan

Low Interest Bill Consolidation Loans
You need a low interest debt consolidation loan to make bill consolidation work for you. Learn more.
Low interest bill consolidation loans

Debt Management news from bakrate.com

2008-07-02T15:20:00.001-07:00

Battling back from devastating debt

Up to your eyeballs in debt? You're not alone. Americans are in hock. See how bad it is and what you can do about it.

Forgiving debt comes with tax bill

A collector's decision to forgive a debt won't shield you from a the big tax bill that will follow.

Resisting the urge to splurge

The flood of consumer spending in the last 20 years hasn't come without a price: massive debt.

Using credit cards to help credit score

Using credit cards wisely -- whether it's one or 15 -- is the key to improving the credit score.

Interest Rate Roundup

See rates from our national survey of mortgages, home equity loans, auto loans, credit cards and CDs.

More personal finance news »

Article : Structuring a Debt Consolidation Program

2008-07-02T15:05:00.000-07:00

By : MortgageLoan.com | June 30, 2008

Debt consolidation programs have helped countless individuals escape the diabolical clutches of debt. If you find yourself deep in the red, here are some simple ways to begin the journey back into the black.

Procrastination is the biggest enemy of anyone in debt. It's too easy to make those minimum credit card payments month after month without taking time to create a long-term solution for your financial troubles ...

read all from mortgageloan.com

Article : Tarragon posts Q4, 2007 losses

2008-04-01T11:16:00.004-07:00

Tarragon Corp. released fourth quarter and full-year losses on Friday as the company wrapped up a year of significant sales.

The New York-based home builder, which sold many major properties in South Florida and across the state last fall, said it lost $18.4 million, or 65 cents a share, on revenue of $157.1 million in the fourth quarter. In the prior-year quarter, it lost $24 million, or 85 cents a share, on revenue of $159.5 million. ...

read all...

Article : A Viable Alternative To Bankruptcy

2008-04-01T11:16:00.003-07:00

(ARA) - If you're carrying thousands of dollars in credit card debt, struggling to pay the rent every month and getting calls from collections agencies, you might be considering bankruptcy. Yet for almost all circumstances, a good financial advisor will tell you that's the last thing you should do.

Once you declare bankruptcy, there are many unpleasant implications. Not only do you lose control of your assets and have your dignity taken away, but when the debt is finally paid off, it will be very difficult to obtain credit again. Bankruptcies remain on your credit report for 10 years...

read all..

Article : Small business tools

2008-04-01T11:16:00.001-07:00

March 31, 2008

Small business tools

Keep on top of the health of your business with free tools from the American Institute of Certified Public Accountants. The financial literacy website offers brief articles, answers to frequently asked questions and calculators to help you learn vital information about your business, including your:

read all...

Links to some popular discussion forums ->

2008-03-21T09:58:00.001-07:00

Pay Day Loans Threats (>343 posts)
What happens if I don't pay the payday loans (>25 posts)
United Cash Loans-PLEASE HELP!!!! (>106 posts)
I am getting really scared that I am being scammed (>25 posts)
GFSIL Payday loan company (>245 posts)
Federal Debt Relief System - Anyone know about them? (>133 posts)
Hess Kennedy Company (>104 posts)
Does anyone know about Geneva Roth? How to stop them from... (33 posts)
Cash Today Limited (>768 posts)
Law offices of Richard A. Brennan (>749 posts)
miracle management group (>3060 posts)
in dept who cares (>32 posts)
Big- INT problems (>50 posts)
Credit Partnership (>272 posts)

Debt Consolidation Articles

2008-03-02T16:25:00.000-08:00

Top tips: Reduce interest rates on student loans (Yahoo! Finance) 3/2/2008 3:32:02 PM

Find the Best Deal on Refinancing Your Home (Franklin County Times) 3/2/2008 2:05:26 PM

Should I Consolidate My Debts? (CBS 13 Topeka - WIBW) 3/2/2008 9:54:25 AM

Reverse Mortgage Information Site Sees Increase in Home Equity Loans for Seniors (Yahoo! News) 3/2/2008 7:26:52 AM

Managing Your Credit Card Debts (Franklin County Times) 3/2/2008 6:20:30 AM

A Viable Alternative to Bankruptcy (Argus Observer) 2/29/2008 6:37:03 PM

Sell this house and move family into an (Decatur Daily) 2/29/2008 4:17:10 PM

Net income falls. (Morningstar)

Article : The Ultimate Debt Consolidation Refinance

2008-03-02T16:24:00.001-08:00

Submitted By: Tristan Hunt
source : http://www.isnare.com/?aid=110244&ca=Finances

This week, I'd like to share some customer experiences with one of the most popular new strategies in debt consolidation refinance. Over the last few months, a select few in the mortgage banking industry have developed programs which allow borrowers to accomplish the 3 greatest goals of debt consolidation: Get Cash to Pay Off High Interest Debt, Lower the Overall Monthly Minimum Payment, and Boost Cash Flow to allow borrowers to save up money in a short amount of time. The benefits are nearly indisputable: Higher Credit Scores, Lower Monthly Minimums, and Greater Flexibility. But one of the biggest criticism of debt consolidation is that borrowers who consolidated their debts were still not saving enough money after the refinance, and needed to tap into home equity repeatedly to achieve their final goal. What if I told you that there is a new loan product available today which allows you to do all of these things, but also allows you to Make No Payments for 90 Days, with 0% interest due over the introductory period?

David in California said what many of you just said, that's too good to be true! If you can do that, sign me up! David had a typical Southern California situation, he works in sales, makes a decent living, has a young family of 5 and about $30,000 of credit card and other debt, which cost about $1100 a month in minimum payments just to cover the finance charges on his revolving debt. But David, like a lot of people in California, has seen solid appreciation year after year in the real estate market, and his home, which he purchased for about $350,000 in early 2003, was appraised for over $500,000 a bit more than 3 months ago. He owed $300,000 on the house, on a traditional principal and interest mortgage with a minimum payment of $2100 a month. Because of the relatively high level of consumer revolving debt, David's credit scores had gone down to about 630 even though he was making all of his payments on time.

When David called us, his loan officer walked through each of David's credit card bills a with him, and together they determined that David was paying and average interest rate of over 27% on his credit card payments, because his credit card companies had raised his rates as his overall debts had increased, which had hurt his credit scores badly. To make matters worse, David, like a growing number of Americans, wasn't saving any money. If he got sick, had a slow quarter, or was otherwise unable to work for any meaningful amount of time, he would be at risk of financial ruin.

We looked at the whole situation, and used this new debt consolidation mortgage refinancing strategy to show David how he could pay off all $30,000 of his revolving debt and take out an additional $20,000 or so to provide a small cushion, partially to be used for value-adding home improvement. Remember, David's old minimum payments were: $2100/month for the mortgage + $1100/month for a total of $3300/month, his credit was getting worse each month and he had no cash in the bank. After refinancing, David's new minimum monthly payment was consolidated and reduced to Less Than $1300 per month Total! And he now had $20,000 in the bank which he wisely put into a high yield savings account earning 5.25% until he needed it. This monthly minimum payment being $2000 a month lower is amazing in and of itself, however what makes this product revolutionary is that for the first 90 days, David had Zero Percent Interest and No Payments due, allowing him to save substantial money each month. He socked it away each month for 3 months, and now 90 days after his debt consolidation he's managed to save an additional $10,000, which combined with the $20,000 he cashed out means he went from almost nothing in savings to over $30,000 in the bank earning solid interest.

But what about David's credit? Now, it's only been a bit more than 90 days since the refinance closed, but I am happy to say (as is David!) that his three scores are now 667, 684, and the high score is 703! Why? His debt ratio is down, and his debt to income ratio is way down too. Combined with a little advice from our credit specialists, the debt consolidation refinance has been the difference for David. He went from a total minimum payment of $3300 a month down to under $1300 a month. He went from 0 in the bank to Zero Percent and Zero Payments for 90 Days, and put over $30,000 in the bank between the refinance and the resulting monthly savings. Not only does he have some money saved up for a rainy day, the new, lower payment is much easier to make even when times get tough, dramatically lowering his risk of missing a payment. And because his credit scores have already improved and will continue to do so, any new car payments or loans he takes out over the next couple of years will be substantially less expensive, allowing him to qualify for low cost car leases and zero-interest, cash back credit cards.

So through this illustration, we've explored some of the benefits of using a minimum payment mortgage refinance with no payments & no interest due for 90 days as a debt consolidation tool. More so than other type of mortgage refinance, this new loan and other mortgages like it help borrowers achieve all of the key goals of debt consolidation, offering great payments and a real "vacation" from making payments. If you ask David and other borrowers like him what they like the most about the product, they'll tell you it's the "breathing room", the ability to get out from under debt and take a couple of months off of worrying about making the payment so they can concentrate on organizing their finances and improving their situations. We can all use that space from time to time, and I agree with our borrowers about the importance of this feature.

There are a lot of reasons we consider the "Zero Interest/Zero Payments for 90 Days" plan the ultimate debt consolidation mortgage refinancing tool. There are some limitations though, which do vary somewhat from lender to lender: While you don't need perfect credit, a minimum middle credit score of 620 is required to qualify for the 90 days with no payments option. You can borrow up to 80% of the value of your home with no payments for 90 days, with the balance above 80% rolled into a separate second mortgage (or you can keep your existing second mortgage if you have one). You are allowed up to one 30 day mortgage late within the last 12 months, however you cannot qualify if you have multiple late mortgage payments showing on your credit report over the last 12 to 24 months, and this program is not offered in all states. Depending on your credit, you may be able to state your income, or even qualify without considering your income. Contact your mortgage professional for more information, and if they don't have a program that allows you to pay off your debts, lower your payments, and get 3 months off of making mortgage payments all in one, find yourself a new lender!

Our next article in this series will tell the story of a single mother who has impressed us greatly with the way in which she's secured her family's financial situation with this loan immediately following a challenging divorce. If you have any questions about this article, please feel free to contact us, or visit us online.

source : http://www.isnare.com/?aid=110244&ca=Finances

Article : Do Credit Card Debt Consolidation Services Work?

2008-03-02T16:23:00.000-08:00

Submitted By: Dominic Ferrara
source : http://www.isnare.com/?aid=229907&ca=Finances

Credit Card Debt Consolidation Services can and are a big help. I know because I used them myself to try to get out of some financial trouble I was in. I initially thought about just claiming bankruptcy but we still had one option left and I was going to try it before filing for bankruptcy and ruining my credit for good wasn't much of an option for me. If you can, I highly recommend you at least talk to a Credit Card Debt Consolidation Service before you think about filing for bankruptcy.

One of the best ways to deal with mounting credit card debts is to seek professional advice. In my case I went to Consumer Credit Counseling Service and they were a big help. Most of the consumer credit services offer credit card debt consolidation service which can make it convenient for you to pay off your debts and which also help you make your monthly payments on a easy to follow schedules. The goal of the credit agency is to help you consolidate all of your credit bills into one lower payment and that is what we did.

In addition to helping you consolidate your debt, the credit card debt consolidation service will help you negotiate a lower payment to your creditors. I was pleasantly surprise that they were willing to call all of the people I owed money to and ask them if they were willing to take a lower payment and or balance. In most cases the credit usually dropped the percentage they charge and some even took off late charges.

Learning How To Budget

Another great feature is learning how to budget. In my case, I got into financial trouble because I was trying to run a small business that just kept taking more money away than it was bringing in. However, the budgeting help they provided was very good and very helpful. They will sit down with you and go over your bills. They will help determine what money is coming in and how much is going out. Then they will work on a plan with you so that you don’t need their services again.

I believe I mentioned earlier that their service was free but now I believe I remember paying somewhere in the neighborhood of $19 per month. The reason I thought it was free was because their charge is included in the money you send them every month. Believe me, paying $19 per month was well worth it because they saved me $100's per month in lower fees and they were able to help me save my credit.

Thus, the best and most effective means of paying off as well as reducing credit card debts is through the use of counseling services that credit card debt consolidation service companies provide. They will help you become self-sufficient and help put your finances back on track and also help you save your credit. As I mentioned above, if you can avoid bankruptcy by getting some credit card help, I highly recommend you do so. If however bankruptcy is your only option, talk to the credit card consolidation company first and they will be able to help no matter what decision you make.

Article : Your 3 worst debt consolidation moves

2008-02-10T14:54:00.001-08:00

"If you're up to your eyeballs, the fantasy of debt consolidation can suck you right in. Watch out for the slippery side of consolidation loans, balance transfers and other 'easy fixes.'" read all...

By MP Dunleavey

Link to a forum : How to get extra money to pay off debts

2008-02-10T14:50:00.000-08:00

Jan 13, 2008(>16 posts)
First post of this forum :

"I had been through the debt road before and although I am still undergoing debts but thankfully it had been minimized tremendously.

Sometimes, you can't just depend on a source of income unless you are earning a CEO's pay or 10k and above per month

These are a list of things which I did that had earned me extra cash to put that extra to the debts

(1) E-Bay- IF you have items that need selling belief me E-bay is the place. Remember One man's junk is another's treasure. (On a side note, i even seen people selling their souls??) Moving on..

(2) DO you have insurance? You may wish to take from your insurance first to repay heavy debts especially Credit Cards.

(3) Do you have a skill? My Example, I went to learn Home Beer-Brewing course and sold my beers between friends and neighbours. You will be amazed on the power that the word of mouth has. Of course your beers need to be good. (I don't mean to brag but..

IF you can paint, go house to house and offer domestic services.. I managed to make a bundle from this

(4) Research through the internet and you will find certain get paid to (like this one) google paid to survey

Well these are just a few that I did and thought of sharing.

Good Luck

see this forum at : http://www.debtconsolidationcare.com/settlement/extra-cash.html

Link to a forum : New... any advice would be great!

2008-02-10T14:42:00.000-08:00

Feb 04, 2008 (>7 posts)
First post of this forum :

"Hi everyone. I am in my mid twenties $45,000-50,000 in debt. I still have 3 more years of school left and am having an impossible time making minimum payments on all of my cards! I am at my wits end. I recently started looking into debt consolidation but am very unsure about it. Was hoping to get some advice from everyone regarding what the best options are for me. I don't want to do bankruptcy, I just need to drastically reduce my monthly payments. I have been told that Take Charge America is a good company. Any advice? Other recommended companies? Should I consolidate or is there something better that I should do? There seem to be a lot of very knowledgeable people of this site and I would love to learn more from them!
Thanks a lot!

see this forum at : http://www.debtconsolidationcare.com/settlement/take-charge-america.html

Link to a forum : Help with credit card debt please

2008-02-10T14:37:00.000-08:00

Fri Feb 08, 2008 (>10 posts)
First post of this forum :

"Hi,

I have the most basic sounding problem many of us seem to have. I had a credit card through CitiBank while in college that I did not make payments on for a while...let's say it's been about 2 years at this point. The credit card debt has been placed with ARS at this point, and the debt is for $3952 up to now. I have recently got to a point where I can make payments of about $100 a month on this debt, which could be more sometimes depending (but keep in mind I have student loan debt that I pay on every month--in excellent standing--and am expecting a new baby in two months--so finances are tight). My question is this: what would be the best way to deal with this situation? I have ignored all correspondences because some people have told me not to talk on the phone with them, others say consolidate, others say it's not enough debt to worry about consolidation, while others say to try to negotiate a payment plan via mail. I'm very confused. I know if I only pay $100-$200 a month it's going to take a while to pay it off, but this is all I can do right now...which is better than nothing, right? Please help! I want to have this taken care of asap. "

see this forum at : http://www.debtconsolidationcare.com/settlement/negotiate-payment-plan.html

Debt Consolidation News and Articles

2008-02-10T14:23:00.001-08:00

BBB: Seek ways to shrink your serious debt Better Business Bureau
Sunday, January 13, 2008

Debt consolidation: cure or continued credit problems? By Jenny McCune • Bankrate.com

Debt Consolidation?

Can a Debt Consolidation Loan Help Your Credit Record?

Play your cards for an interest-free loan By Lucy Lazarony • Bankrate.com

Debt help that isn't By Lucy Lazarony • Bankrate.com

Debt consolidation Thisismoney.co.uk

How to Consolidate Student Loans at a Low Interest Rate

Link to a forum : consolidate with a scured loan or a re-mortgage

2008-01-06T06:06:00.001-08:00

First comment from this forum :

"What should I do. I need to raise £22,000 to pay off several loans which are beginning to get on top of me. I am struggling to meet the minimum payments and if the interest rates rise any further I won't be able to meet them.

Should I consolidate with a secured loan or re-mortgage my house? I have made an appointment to see an IFA but would like some advice before I see him.

Cheers

brummy"

see this forum at : http://forum.debtwatchdog.com/Debt-Consolidation-consolidate-with-a-scured-loan-or-a-re-mortgage-Thread-50.html

Link to a forum : miracle management group

2008-01-06T06:05:00.000-08:00

First comment from this forum :

(3046 posts)

"I was reading concerns from people dealing with the named group above and I am also experiencing the same problems has anyone received legal advice as to what is next? "

see this forum at : http://www.debtconsolidationcare.com/forums/about3064.html

Link to a forum : Has anyone dealt with Hess Kennedy & Company or Credicur

2007-12-20T10:29:00.000-08:00

First comment from this forum :

Tue Feb 28, 2006 (332 posts)
"Hey all,

I'm trying to do debt consolidation and have received offers to consolidate through "Hess Kennedy & Company" and "Credicure". Has anyone had any dealings with these companies? If so, how would you rank them? Thanks everyone.

Alex "

see this forum at : http://www.debtconsolidationcare.com/forums/about7509.html

Link to a forum : Cash Transfer Center

2007-12-13T16:32:00.001-08:00

First comment from this forum :

"I I have been using Cash Transfer Center for about a year with no problem. However, last week I requested a loan of $200. Next day checking status of loan I was shocked to discover $900 was to be put in to my account. I called CTC immediately to rectify situation to no avail. The person I spoke to said there was noting they could do. But if I talked to a supervisor they could be some options. No way. The supervisor was very rude and unwilling to do anything!!! Made it a point to stress I would be charged NSF if I didnt have the money in the bank. Would bnot negogiate at all == funds weetn reven in my account yet. Emails are unanswered.I cannot afford to have them withdraw $1143 out of my account. I am willing to pay the $900 back but not the fees. Any suggestions?

Ps I live in Massachusetts where Payday loans are illegal. "

see this forum at : http://www.debtconsolidationcare.com/mystory/about26961.html

Link to a forum : What to watch out for

2007-12-03T04:57:00.000-08:00

First comment from this forum :

" I think debt consolidation can be a good idea but there's a few things to watch out for.

1. Research the company before going with them. There's some shady "non-profit" business out there.

2. Keep a close eye on the fees. The debt consolidation company shouldn't be putting you further into debt.

3. Don't listen to the "lower your monthly payments". This just prolongs your debt. You're after lowering your interest rate, and applying as much as possible to the debt each month.

4. Do NOT put your house up as collateral. If you can not pay for whatever reason, you can now loose your home."

see this forum at : http://www.destroydebt.com/forum/t/475-what-to-watch-out-for.html

Link to a forum : debt during university

2007-12-03T04:55:00.000-08:00

First comment from this forum :

"Am just worried about the current debt situation.Two of my cousins will start going to university within a year. What can we do to prevent them accumulating large debts during university ?"

see this forum at : http://www.destroydebt.com/forum/t/464-debt-during-university.html

Below are the most searched keywords,about 'consolidate loans',in the internet (datas of 2007)

2007-11-25T09:54:00.000-08:00

Search

Word

99169

consolidate loan student

14383

consolidate loan

4040

consolidate college loan

3305

consolidate private student loan

2044

consolidate debt loan student

1737

consolidate debt loan

1548

personal loan to consolidate debt

1426

consolidate school loan

1425

consolidate federal student loan

1266

consolidate consolidation debt loan

1071

consolidate payday loan debt

source : http://www.zirve100.net/incele.php

Article : What Everyone Ought to Know About Student Loans

2007-11-17T07:41:00.000-08:00

By: WittyArticles

Student loans are a godsend for many students but they can be a curse for other students. The world of student loans is murky waters for the average person. Careful considerations must be given for the type of student loan, interest rates and method of repayment.

Types of Student Loans

For students who qualify, government-subsidized student loans are relatively easy to obtain because the risk to the lender is low. They are also advantageous to the borrower because the interest rates are low compared to commercial loans; in some cases, interest rates are as low as 3 percent.

Many government-subsidized student loans are tied closely to your eligibility for financial aid. Most students today have some kind of eligibility. Check with the financial aid office at your college about determining your eligibilities.

There are four basic kinds of low-interest, government backed student loans for education. They are:

-Perkins Loans
-Stafford Subsidized Loans
-Stafford Unsubsidized Loans
-Parent Loans for Undergraduate Students (PLUS).

Perkins Loans are need-based student loans made directly by the school to undergraduate or graduate students; they have the lowest interest rates.

Stafford Loans are available to all students and are administered by regular lenders such as banks, savings and loan institutions, credit unions and others.

SLS and PLUS are also administered by regular lenders. SLS loans are for independent, self-supporting students. PLUS loans are for the parents of dependent students. Both SLS and PLUS loans have higher interest rates and tighter repayment rules.

There are also some more specialized types of loans for those entering the health care field.

For all student loans, there are regulations about how much you may borrow and when you must begin repayment. Your school or lender will provide you with the details.

Loan Consolidation-what they don’t tell you

It\'s common for students to borrow from several lenders and loan programs to fund their college education. After graduation, when the former student is just entering the workforce, the loans typically come due. With several different loans to pay, financial commitments that seemed reasonable on paper can quickly become overwhelming.

Many people carrying student loans have a unique opportunity to reduce their overall borrowing costs. Former students or parents with at least $7,500 in PLUS loans can consolidate debts with a SMART Loan from Sallie Mae, Nellie Mae or a similar deal from other lenders.

You shouldn\'t consolidate loans just because you can. Stretching out repayment terms is almost always a bad idea unless it\'s done strategically. When the payback period is lengthened, it increases the total finance charges and encourages you to remain in debt.

But student loan consolidation is smart in three specific situations:

1) When making ends meet is a constant struggle.
2) When you\'re already paying a much higher interest rate on credit cards or another type of debt.
3) When you\'re anticipating borrowing money at a higher interest rate.

Consolidating student loans can reduce monthly payments by as much as 40 percent. You\'re eligible if you want to consolidate more than $7,500 in Stafford Loans, SLS Loans, Perkins Loans, Health Professions Student Loans (HPSL), Nursing Student Loans (NSL) and/or PLUS loans.

To apply, you must be in your grace period or already in repayment

Stafford, Perkins and HPSL loans can be consolidated at a 9-percent rate. If you add SLS to the mix, the rate will be the weighted average of all your loans (with a minimum of 9 percent and a maximum, under the SMART Loan program, of 12 percent).

Try to avoid refinancing a Perkins Loan, which carries a 3-, 4- or 5-percent interest rate. Trading it for a 9-percent loan is not a good idea.

The other deals may be more advantageous, particularly with regard to Stafford Loans. Stafford Loans are variable interest rate loans. Since most Stafford Loans start at 8 percent and jump to 10 percent after four years of repayment, switching to a 9-percent rate can actually save you a little bit of interest if you can\'t extend the repayment period.
Always check to see what the new variable rate and current cap is.

Of course, most people do stretch out repayment. Instead of paying what you owe in five to 10 years, you can extend payments over 10 to 30 years. Sallie Mae\'s \"Max-2\" option requires interest-only payments for the first two years of the loan, followed by fixed payments for the rest of the term. With \"Max-4,\" it\'s interest-only for the first four years, then gradually increasing payments for the remainder. (Nellie Mae offers interest-only plans for one to four years.)

Consolidating a student loan can be expensive

What\'s the potential cost of consolidating? A 10-year, $15,000 Stafford Loan (the 8 percent/10 percent variety) would cost an average of $187.67 a month. The total repayment cost of the loan, including interest, would be $22,520.64. By consolidating the loan to a 15-year repayment schedule with two years of interest-only payments, the monthly bill drops to $112 for the first two years and $163 thereafter. The additional interest cost-$5,677.36.

Debt-reduction strategies

Lower payments come at the expense of longer and deeper debt. The decision to apply a debt-reduction strategy like extra principal payments lies in the interest rate. Using 9 percent as the dividing line between high and low interest, it\'s a good strategy to pre-pay principal on student loans with interest rates above 9 percent but continue to make regular payments on any low-interest loan over the full term of the loan.

When you have extra money, don\'t apply it to your low-interest loans. Instead, apply the money to any higher-interest loan you may have, or put it toward your savings and investment plan.

If you have school loans with interest rates in the 12-percent range, target them for early payoffs. If at the same time you have even higher-interest debt, such as credit card debt at 18 percent, pay off the credit cards even before you begin paying down your high-interest student loans.

If you find yourself in a position where you are unable to make the payments on your student loan, contact the lender as soon as possible. Most student loans will allow you to defer payments if you are still in school, unemployed or experiencing a personal hardship.

Defaulted Loans

What do you do if your student loan is already in default?

If the Student Loan Commission reported the delinquent account, the only way you can remove it is to pay off the loan in full and then dispute it with the credit bureau. You can inform the bureau that the loan has now been paid in full (only if it has, of course). The credit bureau will then have to verify the information with the Student Loan Commission.

If the bank or the collection agency reported the delinquent student loan account, then you can negotiate a settlement with the agency that you owe the money to. You can either work out a new payment plan or pay off the debt completely

In some cases, you might want to consult the services of an attorney or professional debt-negotiator. It may even be possible to settle the account for pennies on the dollar or create a new payment plan that is within your means.

Bankruptcy and Student Loans

Student loans are generally backed by a government agency, and consequently, are governed by special rules under the bankruptcy code. In most cases, government backed student loans cannot be discharged through bankruptcy. There are, however exceptions.

Student loans that are not backed by a government agency generally fall under the same bankruptcy rules as other loans. Additional questions regarding student loans, or the dischargeability of other debts, should be discussed with an attorney.

Closing Thoughts for student loans

Don\'t take student loans for granted. If at all possible, plan ahead and save for your (or your children\'s) college expenses. Before taking on the responsibility of a student loan, seek out all scholarships, grants or other sources. Also, there\'s nothing wrong with the old-fashioned concept of working your way through college. In the next chapter you\'ll learn how putting a little bit away each month can pay off big in the future.

source : http://www.articleboy.com/Article/What-Everyone-Ought-to-Know-About-Student-Loans/22856

Link to a forum : consolidate payday loans without turning them to collection

2007-11-10T12:12:00.000-08:00

First comment from this forum :

"Can I consolidate payday loans without turning them over to a collection agency? I don't have any defaults, but I'm not making any progress, just paying about $600 a month in interest. "

see this forum at : http://www.debtconsolidationcare.com/forums/merge-payday.html