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What Are Bill Consolidation Loans?
By Daniel Major
Quite simply, bill consolidation are that pay off lots of smaller and debts that usually have higher interest rates. The benefits and value of applying for bill consolidation are;
1#. The debtor can move all debt into a single loan, a single loan that will usually have a smaller monthly payment than the total amount payable on all previous debt.
2#. The interest rate is normally a lot lower than the average rate of all previous or debts.
3#. Bill Consolidation free you from the monthly worry of unintentionally missing a payment; with a single loan there would be only one payment to worry about on a fixed date instead of several payments all on different dates.
4#. Prioritizing will no longer be a concern; no more worrying about who should be paid first, one single creditor, one single payment, one payment to remember.
Types of Bill Consolidation
Bill consolidation need not be from financial institutions; those of us lucky enough to have a wealthy or comfortable relative may be able to get a family loan at no interest; or at very least at an interest rate comparable to the interest lost while the money is out of the account it came from.
If you have collateral, your home for example, a home equity loan would be the easiest and best way in which to carry out a consolidation and the interest rates are relatively attractive.
Unsecured
loans are much less frequently used as they require an excellent credit score to be approved. The interest rates are higher than the secured alternative but the threat of losing your home, should something terrible happen, is not a concern.
Credit Card chasing, with so many credit cards offering 0% introductory offers for 6 or 12 months on transferred balances it’s a clever way to eliminate your credit card debt quickly without paying interest, but vigilance is required as once the introductory offers expire you could be left with all your debt on quite a high interest rate.
An option many go for is the debt settlement specialist. These companies will contact your creditors, negotiate lower settlement figures with them and then sort out one of their many bill consolidation to suit your situation to pay off the negotiated settlement figures.
The benefits are that you reduce both your monthly payment and the time you are in debt, meaning you are out of debt that much sooner.
In all fairness, though, you WILL be charged for this service, and the procedures they use are quite easy to replicate. My suggestion is not to waste money paying someone else to do what you can do yourself. There are websites that offer all the information needed, plus methods that could have you free of debt quicker than any debt settlement service could promise, and you can check out these at the end of this article.
If you would like to know about the methods that would free you from the 'financial bondage' the financial institutions would rather keep you in click here.. These completely ethical methods of debt reduction have been kept secret by the financial institutions for decades so BeFreein3 and take some action now.
Credit Card Consolidation loans
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