Tuesday, August 17, 2010

Different kinds of debt consolidation

Different kinds of debt consolidation

Many want to divest their debt when the economy is so bad. Trying to get a better interest rate with a mortgage loan modification is an idea while many nevertheless settle their additional debts by just getting a second mortgage. The market began to tank making many of the strategies fail miserably. It is hard to discover somebody who you can trust to help you get true debt settlement relief when it is so rare to find. Resource for this article – Not all debt consolidation is created equal by Personal Money Store.

Fixing debt with more debt?

Many people had credit card debt, or other outstanding debts, they’d pay by applying for a second mortgage or refinancing before the economy tanked. This is like borrowing debt from one to pay the debt of one more. If you are able to get a mortgage refinanced to the market rate, at the moment less than 5 percent, that can be helpful. However, according to Newsday, that is if you have the credit rating to qualify. So if you have any negative dings on your credit score, you may not be able to get a cash advance from your budget with a lower rate if you can’t qualify.

Steer clear of wolfish debt counselors

Be careful of who you let take your debt and consolidate it. You may be better off if you get a personal loan to do it yourself. You are able to get help doing this from non-profit organizations like the National Foundation for Credit Counseling. There is no charge for the services meaning you are able to get out of debt without an extra payday loan. Also, getting a debt consolidation loan at a higher rate of interest than the debt you already have because of your credit rating guarantees paying more in the end.

Dirty debt practices stopped by the FTC

For a long time there has been talk of financial reform. One of the big projects for the Federal Trade Commission is quashing crooked debt relief services. The Washington Post explains that customers can’t be charged an introductory fee, and any fees must be disclosed before being charged as well.

Additional reading at these websites

Washington Post

washingtonpost.com/wp-dyn/content/article/2010/07/29/AR2010072905958.html

Newsday

newsday.com/classifieds/real-estate/how-to-refinance-your-home-with-low-interest-rates-1.2200971



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