Home Add to Favorite Contact Submit  
             25 November, 2020
 

    
Category:  Articles » Finances » Debt-Relief

 

Can A Debt Consolidation Loan Restore Order To Your Personal Finances?

Popularity:
         Views: 1344
2010-02-06 07:54:11     
Article by Jason Rodriguez

A debt consolidation loan is one that takes your existing credit balances and rolls them into a new loan. Usually, the payment on the debt consolidation loan is considerably less than the total of all the individual payments you have been making. These can sometimes be a good way to regain control of your personal finances, but there are some points you should consider first.

Before you take out a debt consolidation loan, see if there is another way to handle your personal finances. Can you reduce expenses and make larger payments on existing debt? Could you and/or your spouse take a second job for the express purpose of paying down debt and restoring order to your personal finances? Are there other ways to raise cash, such as the sale of a boat that hasn't been in the water for years or a vacation cabin you never use?

You also need to know how much the monthly payment on your debt consolidation loan will be. While it is normally less than your total payments, if it is still out of reach of your personal finance picture, you are not doing yourself any favors by taking one.

If your personal finances can be restored, and debt eliminated, in a relatively short period, you might want to stay with the debts you have. For example, if your financial problems are due to paying for a child's last year of college, you can probably survive without incurring a debt that may have a longer repayment term than you currently have.

You will also have to exercise control over your personal finances if you take a debt consolidation loan. Old habits will have to be changed, or you can quickly wind up in even worse circumstances than you started with. One example is when people take out a debt consolidation loan, pay off their credit cards, and then run their balances up again. Now they not only have the same payments they couldn't afford in the first place, they also have a payment on the debt consolidation loan to deal with. If a problem with your personal finances has been chronic, no matter what you did, you need to be sure that you are willing and able to change your spending habits before you take out a debt consolidation loan. Otherwise, your personal finances will continue to be a shambles and your debt load will keep increasing until there are no options left except bankruptcy.

If you take out a debt consolidation loan, it is a good idea to close as many accounts as you can. Keep one bank card for emergency use only, and close the others. Expect to be deluged by enticing offers from the department stores, who want you to reverse your decision and keep the account open. They may offer you huge discounts on your next purchase if made with their card or several months of no payments and no interest. Stay strong, and follow through on your commitment to regain control of your personal finances.

A debt consolidation loan is not for everyone, or a solution for every situation. But for many people, it is the best way to restore some sense of order to their personal finances. It can also bring peace of mind to others, and that is something that cannot be bought.

Specialized in: Debt Consolidation - Restore Order - Personal Finances
Print article      Bookmark this page
Related Articles 
Grow rich (Popularity: ): Through out the history of civilization this question was asked innumerable times. In the last decade the human beings reached a greater understanding regarding economic abundance. We witness it through out the industrial revolution and technological era that accompany this economical abundance. In the last hundred years many people tried to solve the riddle of economic abundance and what actually makes an average or poor person to own a fortune ...
Have You Called Your Credit Card Company Lately? (Popularity: ): It is estimated that on average an American household gets one credit card offer each week, although it is said that this number is probably higher. So with this in mind when was the last time you called your credit card company to get them to lower your rate to beat the offer that you have just received.Yeah yeah I know everyone tells you to do this but you never ...
Cash Advances Always End Up As More Debt (Popularity: ): Are you short of cash and just need a little to get by? Thinking about using the cash advance option of your credit card? Are you sure, have you read how that works? Let me tell you my story of the time I did that and some ideas to avoid this credit card trap.Normally we buy something on a credit card and if our balance started the month at zero ...
Debt Management Program UK (Popularity: ): Are you short of cash and just need a little to get by? Thinking about using the cash advance option of your credit card? Are you sure, have you read how that works? Let me tell you my story of the time I did that and some ideas to avoid this credit card trap.Normally we buy something on a credit card and if our balance started the month at zero ...
Ten Financial Commandments (Popularity: ): Well, here are ten good rules that someone might considering follow to achieve financial freedom and also not waste an important asset, money.1.Thou shalt not buy things before having the money. Many us think that we can pay for it later, so we buy it with our credit cards. Then, when the bill comes we are worried how we are going pay for it. We have several sleepless nights and ...


Related Business 
Debt Consolidation Help (Popularity: ): We advise on student loan debt consolidation, consumer debt consolidation and credit card debt consolidation. If you are serious about getting out of debt and getting a financial education, then you have reached the right site. You will learn alot of tips about money here.
Credit Redemption Particularly Serenitis (Popularity: ): The company website offers a service Serenitis simulation to redeem your credits. Restructuring of loans, loan restructuring, debt restructuring, loan consolidation, consolidation loans, renegotiated loans, renegotiated loans, consolidation loans, loan consolidation, refinancing, purchase loans, debt purchases, refinancing, aid to debt, debt reduction tool, etc.
Online Debt, Credit Card and Bad Credit Debt Consolidation loans at www.loanshopusa.com (Popularity: ): LoanshopUSA.com helps you to find an information on Debt Consolidation Loan,Credit Card Debt Consolidation,Online Debt Consolidation,Bad Credit Debt Consolidation .So, now no worries regarding loans.
Cheap Personal Loan UK (Popularity: ): Cheap Loan Online offer cheap loan, cheap loan UK, cheap unsecured loan, cheap payday loan UK, cheap bad credit loan, cheap personal loan UK and cheap debt consolidation loan in cheap rates. You can apply for cheap loan even with a bad credit score.
My Assets Consolidation; Wealth and Financial Planners (Popularity: ): My Assets Consolidation helps you consolidate all your financial assets at one place besides helping you identify your income dissipation by analyzing all your expenses through a user-friendly report. In case customer desires any debt restructuring, we will give practically implementable solutions for the loans availed such as home loan, credit card over dues, personal loan and business loan.
Free Debt Consolidation (Popularity: ): Free Debt Consolidation is a company which helps consumers become debt free. Through useful debt consolidation and debt settlement programs, these services can work to lower minimum payments.
Debt Consolidation Leads (Popularity: ): Order your Credit Repair, Debt Settlement, Debt Consolidation Software Securely Online. Debt Settlement Software used for management of clients is also included in addition to debt settlement forms and all the bonus software, tools and leads.
Debt consolidation loan (Popularity: ): 123debtconsolidationloan is a website about bank and debt consolidation. This site states different advice to persons who look for useful solutions. These counsels can help them to get rid of their financial burden. Indebted persons will find information that assist them avoiding excessive and unnecessary debts. You can leave your comments and provide readers with helpful tips about this topic. If you have some questions about bank and debt I ...
Tips To Get Personal Loans Easily (Popularity: ): Struggling with bad credit, click to learn how to find quick payday loans and home loan rates. Find Student Loans Consolidation, Personal Loan and credit card debt solutions online.
Loan Ranks (Popularity: ): Information about loans, debt and loan products like personal loan, mortgage loan, home loan, equity loan, payday loan etc. Definition of known loan terms and articles on current finance news. Informative articles covering all the tips and guidelines for loan.