Find Debt Consolidation Solutions

Taking loans has become a way of life because of the convenience it offers. Within manageable limits loan repayment does not create any problems. However there is no harm in looking for better options.

A debt consolidation solution is any method of taking all debts incurred by an individual from various lenders and consolidating them into a single debt. Such a consolidation solution is best for those who have to repay various loans taken from different sources. It is really a bad time for a person who has to take loans to repay earlier loans.

For those who have taken multiple loans from different sources for whatever reasons, debt consolidation could help them. They can get choice of a fixed tenure, flexible loan, or revolving credit plan at a reasonable interest rate - all from a single agency. Otherwise the options for debt consolidation are limited to steps such as renegotiating with primary lenders, availing the services of a non-profit credit-counseling agency, transferring funds amongst credit cards, borrowing from your retirement fund, or taking an advance from your existing mortgage lender or transferring the mortgage to another lender.

It is important to take services of a reputed debt consolidation company for an effective debt consolidation solution. The company you contact will take care of all the debts you owe to various creditors. All you will have to do is make one monthly payment of a fixed amount to the company.

The advantages of debt consolidation are the following:

• You pay only single, fixed payments, instead of separate payments of varying amounts towards numerable debts at different rates of interest;
  
• This single payment is often substantially lower than the amount you previously paid;
  
• Your high interest rates and late fees are often eliminated;
  
• And the process of reducing your total debt load to zero is much faster.

You need to be aware of some of the drawbacks of using consolidation as a debt solution:

• Your credit may be put on hold - and often your credit rating is hit for at least a few years. Debt consolidation agencies can give you advice on this issue depending upon the terms of your loans;
  
• If your debt does not match the criteria, you cannot take advantage of this service, no matter how necessary it might be.

If you find yourself in need of debt consolidation, get this done at the earliest. Find an agreeable debt consolidation solution - and get out the debt-trap before it goes out of your control.

Credit Reports

Regardless of whether or not you have ever dealt with credit in any form, checking and understanding your credit report is imperative to your financial security. Credit reports are often easily obtained and not difficult to understand. So what makes up a credit report and why is it so important to keep tabs on it? Read below for answers.

Credit reports basically consist of credit scores that are based on a mathematical formula. The result of this formula applied to your financial situation is intended to "predict" how efficiently you will pay your bills. What does your credit effect? Well, pretty much all major purchases will be affected by your credit score, from a new car to a new home or computer. Poor credit scores can result in a difficult time purchasing these large ticket items. If your credit score is poor, discuss with your bank or other financial institutions ways to repair your credit.

There are three valid and equally important reasons for keeping tabs on your credit report. The first is simply constantly being "in the know" of your financial situation. You need to know what is going on with your finances at all times and this is one good way to ensure that. The second is that mistakes happen. Things can be charged twice against your credit cards, or a glitch could have occurred keeping your electronic mortgage payment from being posted. If your credit score is poor, you need to take a closer look at your credit card bills and statements, as well as your mortgage statements.

The third reason is perhaps the most important: preventing identity theft. Identity theft is becoming an increasingly large problem in the United States. One of the most common effects of identity theft is a debilitated credit score, as credit cards and bank accounts are often used to fund elaborate purchases, cash advances and other forms of financial theft. If you know that you are paying your bills on time, paying your mortgage on time, etc, but your credit report is in bad shape, you know there is a problem and you need to investigate it further.

Credit Cards: Low APR vs 0% APR

There are so many types of credit cards that offer all sorts of promotions and rewards that it's definitely hard for a consumer to pinpoint which one would best suit their wants, needs and present financial situation. If, however, you've already managed to reduce your choices to just two and the battle's simply between the low ongoing APR credit card and the 0% APR intro rate credit card then here are several tips to help you determine which one is the best credit card for you.

Are You Planning To Buy Anything Expensive - Yes, the words zero percent can certainly be dazzling to the eye but is it something you really need? If you're planning to buy something very much expensive and that's beyond your budget then yes, it might be better if you go for a 0% APR intro rate credit card - just as long as you're sure you'll be able to pay off the full amount before the introductory period is over. Because if you can't and you don't, then what's the use of having 0% APR in the first place?

How Long Does The Introductory Period Last - Generally, for credit cards offering 0% APR intro rates, the introductory period usually lasts from ninety days to fifteen months.

If you're going to purchase something expensive but you don't think you can pay it off before the introductory offer expires then it's time to bring out your calculator once more. Compute how much your balance would be after the introductory period and see if it's still lower than what you'll pay with a low ongoing APR.

What Would The APR Be After The Introductory Period - Going back to the previous situation, let's just say that you don't think you'll be able to pay off the full amount in time. If the new APR is higher than what other low ongoing APR credit cards are offering then maybe, having a 0% APR intro rate credit card isn't the right credit card for your needs.

Are There Any Other Fees To Pay - Whether it's a 0% APR intro rate credit card or a credit card with a low, ongoing APR, don't forget to ask if there are other fees to pay. Naturally, it's better to stick with the credit card with lower fees.