Welcome to Debt Guide
Nonprofit Debt Consolidation Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Getting it Right: Understanding the Types of Debt consolidation loans
from:Debt consolidation loans are very serious commitments. When you get debt consolidation loans, it means that you have already incurred a substantial amount of debt and you’re using the loan to help settle those other debts. Hence, debt consolidation loans must be taken seriously. If you fail to meet the requirements of your loan, you may end up far worse than when you started. So before you choose the type of loan, do your research.
Secured or Unsecured?
The first step in choosing debt consolidation loans is deciding between a secured or unsecured loan. A secured loan is a loan that uses an asset as the collateral. The secured loans work in such a way that when you fail to meet the required payments, the loaning company will be allowed to take the collateral from you. People usually refer to this process as repossession. This loan may be more dangerous since it will require you to put a very valuable asset on the line. This means that you have to risk losing your car or your home. However, since the loan company has the collateral and since they know that you will strive harder to make sure your asset does not get repossessed, they will be willing to offer lower interest rates.
On the other hand, an unsecured loan means the loan is backed by nothing but the credit itself. There are no collaterals. This type of loan does not carry the risk of you losing any of your possessions. However, since the lender does not have the security of collateral, you may not get low interest rates.
Now that you have learned a bit about secured and unsecured loans, let’s look into more specific options for consolidating debts:
Home Equity Loan – Debt consolidation loans may come as home equity loans. This means that you will borrow against your house. You’re telling your loan company that you’re committed to paying and as guarantee, you’re putting your house up as collateral. Until you’ve finished the loan, the loan company will hold the deed of your house and they will have the right to claim it, if you fail.
Zero-percent Credit Card – Debt consolidation loans were meant to make it easier for you to manage debt. When you transfer your credit card debts to a single, zero-credit card, you will be able to reduce the interest significantly. However, remember that zero-percent credit cards are not a free pass. The zero-percent interest lasts only for a while, usually for six months. Also, the moment you miss a single payment, the interest rates will balloon. Hence, zero-credit cards must be taken with a lot of patience, diligence and responsibility.
Debt consolidation loans – There are finance companies that offer actual debt consolidations loans. However, before you commit to a debt consolidation loan, make sure you know how much debt you are paying now. After that, look at the options of debt consolidation loans and see which ones can be more helpful to your situation.
Nonprofit Debt Consolidation News
Brenda Shanahan: Four types of debt problems - Montreal Gazette
Brenda Shanahan: Four types of debt problems Montreal Gazette Q: I was reading your article about debt solutions and it was very interesting and helpful. I am wondering if you know any good accredited debt consolidation company that was reliable and could reduce my debt and stop interest? |
Westerly credit union coaches students on finances, living within their means - The Westerly Sun
Westerly credit union coaches students on finances, living within their means The Westerly Sun The average person in their 20s now carries some $45000 in outstanding debts, according to Debtmerica Relief, a nonprofit debt consolidation organization. By 28 or 29, that number soars to about $78000, for such things as student loans, ... |
Fitch: US Nonprofit Hospital Capex Rising - MarketWatch (press release)
Fitch: US Nonprofit Hospital Capex Rising MarketWatch (press release) The survey also indicated that one of the main drivers of consolidation among nonprofit hospitals is the potential for strategic benefits. Strategic benefits include increased scale of operations, diversified service mixes, and enhanced access points ... |
Romney's Higher Ed Platform - Inside Higher Ed
 Inside Higher Ed | Romney's Higher Ed Platform Inside Higher Ed In his education plan, the former Massachusetts governor also proposed consolidating some federal financial aid programs and changing eligibility rules for Pell Grants to ensure the program's financial future. During the Republican primaries, ... Romney Pledges to Simplify Federal Student Aid and Revive Bank-Based Lending |
Can your student loan debt be forgiven? - Fox Business
Can your student loan debt be forgiven? Fox Business Federal programs exist that will forgive the remainder of your federal student loan debt if you work in the public sector or for a registered nonprofit for 10 years and keep current with your payments. Others allow you to stretch out your loan payments ... |