Debt Consolidation - The Good, The Bad, The Ugly

The private student loan consolidation process includes several targets. It must aim to get the lower interest rate, the longer payment time, no upfront fees and a chance to pay more before the agreed timetable without penalties.

Loan Term. Are you able to stand paying back your student loan consolidation loan for 15 or 20 years? If you pay the loan back early will there be any prepayment penalties? What if you were to default on your loan?

Emergencies happen to everyone. Unfortunately people we love die, life-long careers disappear, and, as we've all seen in the news lately with Hurricane Katrina, natural disasters create havoc. All too often we are unprepared for such events and we end up putting a lot of expenses on credit cards. As you analyze your budget, it's a good idea to determine a set amount to save each month for emergencies. Ideally, if your budget allows for it, a good amount is 5-10% of your take-home income. But if you can't manage that much, then set aside as much as you can.



credit card consolidation is a relief program that merges all your card debts into one making it easier to pay. This program helps you to avoid paying high interest rate on card bills. In this program, the relief firms negotiate with the Card Company to lower the interest rate, so that it becomes easy for the debtors to pay. Along with this you will be able to pay debts at low interest rate making it manageable. Often your late fees get deducted and you don't receive any calls from the agencies.

With that being said, lets take a look at what exactly a home equity line of credit (HELOC) is and how it could possibly work in debt management. First of all - Do you qualify for a HELOC loan? In this economic climate, that could be tough especially if your finances and debt is a little out of whack. Before you get too wrapped up in the process, check with a bank or two to see if an equity loan is even a possibility.

Due to these reasons it is better to explore other debt relief solutions such as debt settlement, pay off payday loans, credit counseling etc. Amongst all these options, debt settlement is one of the most sought after debt relief program. Here, you can negotiate a reduction in the total amount that is to be repaid to your creditors in exchange of a certain amount of down payment. If you have ten thousand dollars or more in unsecured debt then you can avail this option of debt relief.

There's just no getting around it; you happen to be in difficulty with your credit as you are living above your income. In other words, you are spending greater than you earn. This isn't to fling lots of blame and guilt around. You'll find many conditions that could cause you to live above your earnings. You could lose your job or have an emergency in the family that could cause you financial worries. However when the cash going out is the more money than is coming in, you've got a problem that will increase your credit card debt. It will even cause a drop in your credit score therefore you'll need to repair your credit once you get your credit card debt under control again.

But what are your long term goals? You need to take a look at what you really need and what you want. It is easy to save money on things you don't really need. Take a good look at the item you are going to buy and ask yourself do you really need it? Maybe you could get by with only half of what you need. You just need to make a list of your wants and your needs, once you have the list you can work on one thing at a time. So you can get on the fast track out of debt. You can live debt free it's not that hard, you can do it. .