Monthly Archives: June 2013

debt consolidation

Debt Consolidation Loans

As the credit crunch continues to bite, debt consolidation loan advertisements are appearing with increasing frequency. This article explains how debt consolidation works, and the pros and cons of this form of borrowing.

For anyone struggling with debt, consolidation appears to be an attractive proposition. Debt consolidation replaces existing loans & debts with a single loan, leaving just only one payment to make every month.

Unsecured debt consolidation loans with poor credit attracts high interest rates. For most people today, the majority of theconsolidation loans repayments made on existing loans barely cover the interest. Meanwhile, very little is going toward reducing the debt. When finances get tight, it is natural to try to minimise outgoings as much as possible. Often, one of the first things people do is to cut the repayments on credit card and store card debt to the minimum.

Unfortunately, the majority of the payment will be put toward the interest, with very little actually going to reduce the debt. Credit card companies love people who only pay the minimum each month, as they will stay in debt longer and the company will make more money.

Debt consolidation helps to break the cycle of spiralling interest charges, by replacing all existing unsecured borrowings with a new loan, often at much lower rates. The loan repayments will be spread over a longer time period, but in many cases the total repayable will be lower than if the existing loans were left to run.

The downside to debt consolidation is that it extends the period a person remains in debt. Neither is it guaranteed to be a more economical solution in some cases. Debt consolidation loans work best for people with a reasonably high level of unsecured debt, including credit or store card debt, which is not likely to be cleared in the near future.

Debt consolidation is nothing but a major financial decision, and as such it is always wise to seek advice from a qualified debt counsellor or financial advisor. Whilst this article covers the basic advantages and disadvantages of debt consolidation, it is no substitute for proper professional advice.


Online Payday Loans

There are certain times in life when the cash just simply isn’t there. You might have a job or two but the extra emergency expenses just pile up. In such instances, on line payday loans can be a viable answer.

There are certain requirements to fulfill to have a successful application process. You must be of legal age in your particular area of residence, you must have employment or source of income, among other things. These requirements may vary between lenders.

The lender does not ask you why you need the money so you don’t have to be concerned if the reason is rather personal. They only really care that your identity is real and that you are able to repay the loan according to the terms that you have agreed to. This can relieve the stress that you feel during these times.

The convenience of the online payday loans doesn’t mean that you should frequently use this method of gaining cash. You are encouraged to use these quick loans for emergencies. They are there for you to use but there is interest to pay on them.

Of course, your definition of an emergency may differ from someone else’s. Plus, there are all sorts of emergencies that occur. Unfortunately, for someone without proper medical insurance, when there are certain services needed such as a physical examination or a prescription medication refilled, there are fees to pay. Online loans can cover these expenses.

The same applies for those instances when the vehicle might need repairs, you need groceries for the home, or you have to buy a gift for someone. There are plenty of situations that might call for extra funds and they usually occur when the money isn’t available. However, there is no need to panic. Whatever the case is, these loans offer a solution to various cash flow emergencies that you might experience.