ipl-logo

Pros And Cons Of Debt Consolidation

1039 Words5 Pages

When we get into debt, feelings of fear, anxiety, and hopelessness often take over. We don't know who we can turn to for help. Rather than borrowing money from family or taking on a third job, debt consolidation can help you fix your problems. Read on to find out more.

Don't fall victim to companies claiming to cut your monthly payments in half with just one phone call. It is understandable that you want a quick solution to your problems, however, you can just be making your situation worse. Sit down and consider the different debt consolidation options that are available to you and decide on the pros and cons.

Consider a bill consolidation service to help with your monthly debt. When you seek to consolidate debt, paying monthly bills to …show more content…

Look at the fine print. Often there's an initial fee that you need to pay (it can be multiple hundreds of dollars), and there's usually a 12-month or 18-month limit to the offer. At that point the interest rate may increase to higher than it was before. Do the math before you say yes to make sure that the deal works in your favor.

Get a debt consolidation company's TOS (terms of service) in writing before making any decisions. It should have information about their fees and how long you will have to use their services. They should also outline what the benefits of using their company are. If you cannot get anything in writing, steer away from the company.

Do you wonder if debt management might be an answer for your issues? If you are able to pay off debt short-term via managing the current issue, you can pay less and become more financially secure in short period of time. Simply pick a company to work with that can get you better interest rates.

Instead of a debt consolidation loan, consider paying off your credit cards using what's called the "snowball" tactic. Pick the creditor who charges the highest interest, and pay that debt down quickly. Then take the money saved from not having that payment and place it towards paying off your next card. This is among the better

Show More
Related

  • Nt1310 Unit 1 Assignment 1 Loans

    452 Words  | 2 Pages

    The debt consolidation company executives will compromise with your current creditors

    Read More

  • Pros And Cons Of Student Loan Debt

    103 Words  | 1 Pages

    Hello, Professor Gray, The lost loan repayment plan would have a positive impact on the taxpayers by working with your loan servicer to choose a federal student loan repayment plan to make loan payments more fordable giving the loaner more time to repay their loans based on their income. Student loan debt is referred to as installment debt, which means you have fixed payments for a specific period of time. The interest you pay on your student loans is tax deductible that would put additional funds that could be used to purchase items that would increase spending with will help build the

    Read More

  • The Pros And Cons Of Raising The National Debt

    366 Words  | 2 Pages

    (1) I can see how you would say “several presidents that fit into this category but I read about two in particular.” if you are talking about raising the National Debt. Reagan more than doubled the National Debt, from$997,853 million in 1981 to $2,602,337 million in 1988 and GW Bush also more than almost doubled the National Debt going from $5,807,463 million in 2001 to $ 10,024,724 in 2007. When it comes to a discussion about National Debt, would please explain (I know you most likely will not reply) how President Reagan’s approval rating has anything to do with the topic?

    Read More

  • The Pros And Cons Of Student Loan Debt

    1075 Words  | 5 Pages

    In the U.S, there is a huge problem facing the government: student debt. College students are graduating from school with huge amounts of debt and loans borrowed from the government. Many students have a hard time finding a job upon graduation and have no way to pay back their loans. This hurts the students as well as the government and the economy. The student loan crisis keeps getting worse and worse.

    Read More

  • Pros Of Student Loan Consolidation

    1506 Words  | 7 Pages

    A lender will give you money to pay off all your other student loans so that you only have to make one payment to the lender. The one payment will be for an amount of money that you can afford with terms that suit your situation. Get the Student Loan Consolidation Facts There are various reasons as to why getting a student loan consolidation will be to your benefit. First of all there is only one payment to be made. So you are responsible for only one monthly payment.

    Read More

  • Student Debt Pros And Cons

    940 Words  | 4 Pages

    Is getting in debt for going to college interfering with pursuing life long dreams? Many people have student loan debts, and are struggling to pay them off by working more than one job. People decide to go to college to follow their dream job and having a degree behind them, they get paid more. However, in some cases, students don't know what they're getting themselves into if they can't afford to get into college or universities. They sign up for student loans and eventually get into debt because they don't know how much they’ll owe before.

    Read More

  • Sunflower Nutraceuticals Summary

    1939 Words  | 8 Pages

    This has placed SNC in a position to take on more leverage in the future, especially with its continuously growing interest coverage ratio. At the end of phase 3, SNC has a high interest coverage ratio of 105.88 due to the low level of interest expense, which steadily decreased from phase 1 to phase 3 . The improvement in interest coverage over the three phases shows investors that SNC is a creditable investment and shows SNC that they can take on more debt if needed. SNC is satisfied with its decision to switch to AT as its financier over MDM because of the long run potential benefits. Although SNC did not over draw its credit line or utilize the additional $500,000 on their credit line over the nine years, they have generated a cash surplus and enough value to meet their debt needs, as well as built a more stable and profitable company.

    Read More

  • Bankruptcy: How To Discharge Student Loan Debt

    370 Words  | 2 Pages

    Bankruptcy is a financial remedy reserved for frantic situations. Student loans are the only form of consumer debt which have considerably different bankruptcy rules. Before 1978, any student loan debt , whether it was private student loans or federally funded loan, was dischargeable in bankruptcy, without any exceptions. Eventually in 2005, a new law was passed to avoid almost 100% of private student loans from qualifying for bankruptcy discharge. Student loans are generally non-dischargeable in bankruptcy.

    Read More

  • Atwood Debtor's Prism Analysis

    2405 Words  | 10 Pages

    It seems that debt has become a norm in today’s society; people do not flinch at the sound of the word or attempt everything in their power to not succumb to it. When debt was a feared concept, people ran away from it. However today it seems that people are somewhat forced into a life of debt. The piece by Margeret Atwood, “Debtor’s Prism” is one about how the idea of debt has been deeply woven into our literature, social structure, and culture. Since the recession began in late 2007, Atwood takes a unique perspective of the history behind debt and the meaning of having been pawned.

    Read More

  • The Pros And Cons Of National Debt

    757 Words  | 4 Pages

    The national debt is growing by the second. The United States is 20 trillion dollars in debt. The largest portion of the debt is money that the government owes itself, borrowed from Medicare and social security. Debt is different from the deficit, deficit when the government plans to spend more than they have yearly counted. Debt is the accumulation of deficit.

    Read More

  • William Wrigley Company Case Study

    707 Words  | 3 Pages

    1 Introduction The main issues in this case relates to a mature firm that does not use debt at all and is not taking advantage of the lowest interest rates in nearly 50 years. William Wrigley Jr. Company makes chewing gum, has a leading market share in their line of business, and yet has no debt. Blanka Dobrynin, a managing partner of Aurora Borealis LLC, wants to see if Wrigley Company can take advantage of and benefit from debt. 2

    Read More

  • The Pros And Cons Of Student Loans

    585 Words  | 3 Pages

    Student loans have always seem to be a controversial topic. Many people are in agreement and disagreement over the opportunity to student loans. Student loans can be a great advantage to many students, but it can also drown them in an immense debt, that will follow them for many years. The more we analyze this perspective, we are able to distinguish the advantages and disadvantages of student loans. There is a variety of perspectives on student loans, some involving annual salaries, interest rates, and commodity.

    Read More

  • Argumentative Essay On Student Loans

    378 Words  | 2 Pages

    Student loan debt loads have been spiraling, doubling over the last decade, and the enrollment rates of young people from lower socio-economic groups are rising far slower than middle and upper groups. Governments must recognize the renewed public investment in post secondary education is an economic and social imperative. 6.7 million borrowers in repayment mode are delinquent (Snider 1). The sad fact is that many lenders aren't exactly incentivized to work with borrowers. Unlike all other forms of debt, student loans can't be discharged in bankruptcy.

    Read More

  • Grandma's Best Swot Analysis

    984 Words  | 4 Pages

    Their three options include a loan (sweetheart), bonds or an IPO. The firm has expressed interest in the first option (loan). This appears to be a good fit as they have decreased their long-term liabilities from previous years and if they want to expand, extra liquidity will be needed. The firm’s current line of credit is about double what it normally is and the payments on their remaining long-term debts are going to increase through the next four years with a balloon payment due in 2015 of $642,000. The increased current line of credit is due to the recently added production lines and only carries a 4% interest rate.

    Read More

  • Persuasive Essay On Credit Card Debt

    922 Words  | 4 Pages

    3. Call Party Credit Card. When you are no longer able to live with a number of bills that increasingly suffocating, contact the credit card to be wise and intelligent next step you can do. To deal with this debt you can go part of the credit card debt settlement. Here, you can express the problems that your inability to pay the debt.

    Read More

More about Pros And Cons Of Debt Consolidation

Open Document