Debt Consolidation Loans

Who will benefit from the new bankruptcy reform laws? The financial services industry and other big business groups, that’s who.

These groups contributed millions of dollars to elect Bush and other Republican
candidates in 2000 and 2004, with the goal of overhauling the bankruptcy system.
They and other big business groups have continued to spend millions, rage
arguments and lobby persistently for bankruptcy reform. In March 2005, with the
House and Senate loaded top heavy with Republicans, they succeeded.

The financial services industry includes the banks, credit unions, the American Bank
Association, credit card companies and retailers.

Big business groups pressuring for legislation include auto makers such as the Ford
Motor Company, General Motors, and DaimlerChrysler. These groups were willing to
pay millions of dollars and spend many years lobbying for bankruptcy reform. The
car makers, unhappy with the way auto loans are handled when an individual files
for bankruptcy, pushed for reform.

Others who lobbied heavily for reform were car dealers, record labels, and gaming
interests such as casinos, many of whom represent large corporations and prime
lenders, such as MBNA Corporation and American Express Company, who
contributed millions not only to stack the political odds in favor of the bankruptcy
reform bill, but to elect candidates sympathetic to their goals. MBNA Corp. and
American Express Co. are among the top beneficiaries of the bankruptcy reform.

Bankruptcy reform supporters argue that debtors seeking relief through bankruptcy
are either purposely gaming the nation’s bankruptcy system or they are
irresponsible spenders who should pay at least a portion of their bills if they are
able to. In fact, about half of the claims filed for bankruptcy are attributed to
medical costs.

Bankruptcy reform will require most filers to receive credit counseling and lessons
on how to improve their financial management skills. Bankruptcy reform states that
filers pay for the counseling themselves.

Included in the new bill is a provision requiring that credit card billing statements
include an example of the time it would take to pay off the balance at a particular
rate of interest. Billing statements are also required to supply a toll free number for
the consumer to call and inquire about the length of time it would take to pay off
the balance if they are only making the minimum monthly payments.

Citizen advocate Suzanne Arthur highly recommends the Repair Bad Credit Newslog,
for news and further information on consumer debt and repairing credit scores. Go
to: Bad Credit Repair Newslog

Tags: loans, finance, debt consolidation, bankruptcy, get out of debt

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Taking loans has become a way of life because of the convenience it offers. Within manageable limits loan repayment does not create any problems. However there is no harm in looking for better options.

A debt consolidation solution is any method of taking all debts incurred by an individual from various lenders and consolidating them into a single debt. Such a consolidation solution is best for those who have to repay various loans taken from different sources. It is really a bad time for a person who has to take loans to repay earlier loans.

For those who have taken multiple loans from different sources for whatever reasons, debt consolidation could help them. They can get choice of a fixed tenure, flexible loan, or revolving credit plan at a reasonable interest rate - all from a single agency. Otherwise the options for debt consolidation are limited to steps such as renegotiating with primary lenders, availing the services of a non-profit credit-counseling agency, transferring funds amongst credit cards, borrowing from your retirement fund, or taking an advance from your existing mortgage lender or transferring the mortgage to another lender.

It is important to take services of a reputed debt consolidation company for an effective debt consolidation solution. The company you contact will take care of all the debts you owe to various creditors. All you will have to do is make one monthly payment of a fixed amount to the company.

The advantages of debt consolidation are the following:

• You pay only single, fixed payments, instead of separate payments of varying amounts towards numerable debts at different rates of interest;

• This single payment is often substantially lower than the amount you previously paid;

• Your high interest rates and late fees are often eliminated;
• And the process of reducing your total debt load to zero is much faster.

You need to be aware of some of the drawbacks of using consolidation as a debt solution:

• Your credit is put on hold - and often your credit rating is hit for at least a few years;

• If your debt does not match the criteria, you cannot take advantage of this service, no matter how necessary it might be.

If you find yourself in need of debt consolidation, get this done at the earliest. Find an agreeable debt consolidation solution - and get out the debt-trap before it goes out of your hand.

Visit for information and solutions on debt consolidation:
http://www.sanjay-j.com/debt_consolidation_with_online_quote/

Tags: debt settlement, bad credit, debt consolidation, debt, personal finance

Popularity: 3%