Debt Consolidation Loans

Bankruptcy is an option for people who have acquired a lot of debt. While bankruptcy may eliminate your debt legally, it is extremely damaging to your credit rating. If you file bankruptcy, expect to pay higher interest rates on credit cards, vehicle loans, home loans, etc. However, this can be avoided. Here are a few tips to help you reduce your debt without bankruptcy.

Improve Bad Credit and Reduce Credit Card Debt

If you are hoping to improve your credit rating without bankruptcy - be patient. This may be a long process, especially if you have bad credit. Many people who file bankruptcy have a decent credit rating. The problem lies in the inability to repay large credit card and medical bills. However, there are ways to reduce debt over time.

Begin by paying more than the minimum balance. If possible, pay double and triple the minimum payments. Financially, some people are unable to pay larger monthly payments. Getting a second job is a great alternative. The extra money from your employment can be used to pay your bills.

If you have bad credit, begin improving debt by maintaining a current standing with your creditors. This involves paying monthly minimums on time. Do not pay creditors late. This harms your credit report. Additionally, avoid missed payments. If you maintain regular payments, your score will improve, and then you can begin paying more than the monthly minimums.

Eliminate Debt with Home Equity Loan

If you own a home, you have more options for eliminating debt without bankruptcy. Contact your mortgage lender and discuss getting a home equity loan or line of credit. These loans are ideal for eliminating or reducing debt. Moreover, getting these types of loans are much easier because your home secures the loan amount. Of course, if you refuse to repay the money obtained from a home equity loan, the bank has the right seize your property.

Free Debt Consolidation Company

If you do not own a home, consider contacting a debt management company. These companies are non-profit organizations who are dedicated to helping consumers eliminate their debt. With a debt management program, you can reduce your debt up to 70%. In addition, you can be debt free within a few years. All your debts are consolidated into one loan amount. Each month, you make one payment to the debt management company.

Here are our Recommended Debt Consolidation Companies Online.

Carrie Reeder is the owner of ABC Loan
Guide, an informational website about various types of loans.

Tags: loans, debt consolidation, money, debt problems, debt

Popularity: 1%

Thanks to the new bankruptcy reform laws, many Americans who are overburdened by their credit card debt will no longer qualify for Chapter 7 bankruptcy protection. However, consumers need to know that an alternative exists for people to walk away from 100% of that debt, without bankruptcy, consolidation, or refinancing. The program is applicable to all major credit cards, unsecured lines-of-credit, and signature loans.

The process that is used to discharge debt is based off of U.S. Supreme Courts decisions, Title 15 United State Code (USC) section 1692, the Fair Debt Collections Practices Act, section 1601, the Fair Credit Billing Act, the Uniform Commercial Code (UCC), section 203, and numerous Banking and Lending laws.

There are many cases that have already been decided on when it comes to the issues of money, credit, and banking. The collection of interest on credit issued by a bank or a credit card company is in direct violation of all usury laws. In addition, the United States Supreme Court has ruled time and again against the legal authority for banking institutions to lend credit. Both Federal and state laws allow banks to lend money, but banks do not have the authority to loan credit.

Even with the reform, some bankruptcy protection is still in place. However, consumers must obtain credit counseling from an approved agency within six months prior to filing for bankruptcy. Also, the consumer may still be required to repay most of their debt. In addition, being enrolled in credit counseling will show up as a negative on a consumer’s credit report, as damaging to credit as a bankruptcy.

A large percentage of people with debt trouble were not irresponsible with their credit cards, but have had some type of crisis in their lives. This program is giving people a fresh start on their financial lives. A ‘do-over’ you might call it. Without the credit-sting or shame of bankruptcy. Let’s face it, for people who are carrying $20K, $40K, $80K, or more of credit card debt, unless they win the lottery, they are never going to pay it off.

The time-tested legal procedures used to eliminate credit card debt have been used by thousands of people with tremendous success. It is truly the alternative to bankruptcy, credit counseling, and debt consolidation.

Billed as The True Debt Advisor (http://www.TrueDebtAdvisor.com), Jim Vrana’s mission is to educate and empower people to overcome their financial challenges.

Tags: finance, financial, consolidation, consolidate debt, money

Popularity: 1%