Consolidation of your Debt

Information about Consolidation of your Debt

Published on August 5, 2014

Author: myfinancialhelp

Source: authorstream.com

Content

PowerPoint Presentation: Steps To C onsolidate Your Loans http://myfinancialhelp.co.za PowerPoint Presentation: Get Your Credit Report Any loan you get will be based largely on your credit score. If your credit score quite well and have a reasonable rating, you may easily be able to consolidate loans at a lower rate. So in first step of debt consolidation, you should go over your entire credit report carefully to make sure it is accurate because inaccuracies can hurt your score. http://myfinancialhelp.co.za PowerPoint Presentation: Understand Properly Different C oncepts of Debt A Consolidation loan is simply a loan that pays off your other loans in which you owe that money to the new lender, not to the original creditor. Debt Management agency acts as a middleman between you and your creditors and tries to negotiate a reduction in the interest rates or fees on your loans. Debt Negotiation is the act of setting a debt for less than what you owe. http://myfinancialhelp.co.za PowerPoint Presentation: Aim to Pay Off Your Debt Quickly One of the most attractive features of consolidation loans is the potential for lower monthly payments. So figure out your budget and set your monthly payment as high as you safely can. You will end up paying less and get out of debt quicker. http://myfinancialhelp.co.za PowerPoint Presentation: Get The Right Loan For You Debt Consolidation Loans can be secured & unsecured. Secured loans, such as second mortgages, secured lines of credit or home equity loans, will typically have lower interest rate than unsecured loans because the lender can recoup the money by selling the underlying asset. Unsecured Loans are a safer option, because you don’t have to risk your house or other assets. If you have good credit, you should be able to get a decent rate on an unsecured personal loan. http://myfinancialhelp.co.za PowerPoint Presentation: Compare The Total Cost of Your current Consolidation with Other Don’t just pay attention to the monthly payment, also consider how much you will pay for a consolidation loan including the interest, upfront and recurring fees, closing costs and any tax implications, over the life of each loan. Then compare it to total amount you will have to pay to pay off your current loans. If you can realize substantial savings on the total cost of the loan, consolidation is probably a good option. http://myfinancialhelp.co.za PowerPoint Presentation: Read Your Loan Contract Carefully Read every word, and then read every word again. Ask any questions you may have, and make sure you understand the answers, no matter how many times you have to ask. If in doubt, get a lawyer or another knowledgeable, independent source to take a look at the documents for you. Something that seems inconsequential in a contract can end up costing your thousands of dollars or even your home, so do your due diligence. http://myfinancialhelp.co.za PowerPoint Presentation: Reject Credit Insurance Some lenders will attempt to pressure you into buying credit insurance , either by extolling its virtues, implying that your application will be rejected, or hiding it from you. If a lender does either of the latter two, get out of there and file a complaint with the appropriate authorities. Credit insurance can add a huge cost to the loan, and it generally offers you very little protection. The lender may make the cost seem small by telling you the monthly price, but don't be fooled. http://myfinancialhelp.co.za PowerPoint Presentation: Finalize The Loan If your loan hasn't already been approved, complete the full application process. This should be straightforward, but it can take some time and footwork. If your loan rate is different from that which you were quoted, find out why? http://myfinancialhelp.co.za

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