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October 12th, 2009:

A Debt Consolidation Loan – 5 Methods That You Can Use To Face Your Debts And Succeed

Debts can become overwhelming, particularly when the monthly payments steadily increase leaving you with less and less money to spend on your needs. Financial struggle can actually cause people to become paralyzed and unable to take the very action which could free them. Frankly, people stop thinking straight when they are under too much financial pressure for too long. However, most people could alleviate the stress caused by high monthly debt costs by simply combining all their debts into one low interest debt consolidation loan.
Your financial problems cannot change unless you are prepared to take action. Here are five methods you can use to face your debt and succeed financially:
1. USE A DEBT CONSOLIDATION SERVICE. It can be hard seeing your way clear of debt. It can be very helpful to obtain the help of professional debt counselors who can locate the best debt consolidation loan for your needs as well as providing budgeting advice and establishing a long term financial plan that will not only help you get out of debt, but will also help you to establish your own wealth.
2. TAKE ADVANTAGE OF YOUR HOME EQUITY. If you have enough equity in your home, a home equity loan is likely to be the lowest cost debt consolidation loan available to you. The only downside is that your house is used as collateral and if you don’t pay the loan payments when they fall due the lender is within its rights to foreclose. However, if you plan to pay by the due date every month, this debt consolidation loan will probably save you a lot of money.
3. CONSOLIDATE YOUR DEBTS INTO ONE PERSONAL LOAN. For those individuals who do not have home equity to draw upon or do not wish to use their home as collateral, an unsecured personal loan is the next best debt consolidation loan. Under some circumstances, lenders may require security on a personal loan but this is rare. Personal loans usually offer much lower interest rates than credit cards or consumer loans, although not usually as low as home equity loans. The right personal loan can be a low cost debt consolidation loan and it can free you from the stress of high monthly debt costs.
4. BUDGET. A debt consolidation loan won’t help you long term unless you can avoid repeating the mistake of using credit in a crunch. It is therefore very important to create a budget that you can live within. For long term financial success your budget should not only cover expenses, it should also include a strategy to pay off debt quickly and savings for emergencies.
5. CANCEL YOUR CREDIT CARDS. A mistake a lot of people make when they consolidate their debts is to keep their credit cards and lines of credit “just in case” when the balances are paid off.
There will be times in our lives when we feel that it is necessary to use credit. If we don’t have it to fall back on we will have to find another solution.
If you are stressed by high debt payments every month and need some quick relief, a debt consolidation loan could be just what you are looking for. Take some time to choose the right debt consolidation loan for you and then take action. You won’t regret it.

Debt Consolidation Loan: Information You Need To Reduce Debt And Live Your Life

Debt squeezes your finances, opportunities, health, and family relationships. It constrains, constricts, restricts and stifles. Heavy debt payments every month can leave their mark on your confidence, hopes, dreams, and your health. So how would using a debt consolidation loan solve your problems?
The most important thing you need to do is to free yourself from the strong grip of debt. While you may not be able to pay off your debts in a single hit, you can do the next best thing – consolidate your debts using one low interest debt consolidation loan. This will simplify your financial life by reducing the number of debt payments to one (apart from your mortgage) as well as reducing the size of your monthly debt payment.
By lowering interest rates and only having to make one monthly payment, you can substantially reduce your monthly debt costs. It’s not uncommon to be able to halve your monthly payments this way. Depending on the size of your debt and monthly payments, this can be a considerable saving, leaving you with more money in your pocket.
Furthermore, by freeing up more of your income for family use by using a debt consolidation loan to combine debts, you can improve your lifestyle, pay off debt faster, save or invest or pay for something as important as your children’s education that may have been beyond your reach.
There are many debt consolidation loan options including a home equity loan for those with adequate equity in their homes, an unsecured personal loan for those who either lack home equity or don’t want to risk their homes and a low interest credit card which may suit circumstances where extra borrowing for may be necessary for expenses that haven’t come in yet.
Whichever debt consolidation loan option you choose, be sure to cancel all credit cards and lines of credit once the balance has been paid off by your debt consolidation loan to avoid getting into debt again. An advantage of using a debt consolidation service or a debt counselor is that they will handle everything for you and help you to ensure you are in the best financial position for success.
Ideally, as well as organizing a debt consolidation loan, they will also help you to create a workable budget and a along term financial plan. They will also work with you to evaluate your spending habits so that you can identify problem areas and make necessary changes.
Even if you don’t want to use a professional service to do these things for you, you should certainly do them for yourself. Create your own budget. There are many free budget forms available on the internet that you can download or fill in online. You can also become more educated on financial planning and begin to create a long term vision for your financial success.
A debt consolidation loan is literally your first, significant step to financial freedom and the longer you delay taking this action, the longer you will continue to suffer the debt squeeze.

Options to Become Debt Free

Regardless of how you got into debt, there are options to get debt free. Which option is best for you will depend on your situation.

The first option is simply to work to pay off your debts on your own. It’s not enough simply to pay the minimum amounts due on each card. Create a budget to determine how much you can afford to put towards paying off your debt. By increasing the amounts you pay each month, you are greatly decreasing the amount of time that it will take you to pay off your debt. It is a good idea to start with the debt with the highest interest and concentrating on getting that paid off, then moving on to the credit card with the next highest interest, etc. This is a good option for those with only a low to moderate amount of debt or who have the willpower to stick to a strict budget.

Another option that people choose for getting debt free is a loan. This could be a debt consolidation or home equity loan. Debt consolidation loans are specifically designed to pay off debt, and generally carry a larger interest rate than normal car or home loans. They also are not available to everyone. A homeowner can generally get a good rate with a home equity loan, but it is not usually a good idea to use it to pay off debt. With a home equity loan you are securing the debt with your home and could be at risk of losing it if you do not pay off your debt.

A third major option is a debt management plan. This type of plan is beneficial for a wider range of people as it can be made to fit your needs. With this plan, you will pay one monthly payment to the debt management company who will then distribute that money to your various creditors. They can usually work with your creditors to lower your interest rates and cancel many fees on your accounts. This will allow you to put more money to actually paying off your debts. In many cases, you can become debt free in three to five years with a debt management plan.

Another option that carries little benefits is debt settlement. Debt settlement companies often promise more than they deliver, so be careful. They will attempt to work with your creditors to allow you to pay only a portion of your debt. After you add on the extensive debt settlement fees and the taxes you have to pay on forgiven debt, you often don’t pay any less than you could have if you had just paid your debts in the first place. Also, there is no promise that they will be able to work out a beneficial deal with your creditors anyway.

A final option is bankruptcy. This is an extreme solution and should only be used when others have failed. While bankruptcy can allow for people to have a fresh start, it also ruins your credit for years to come. Make sure that it is absolutely necessary before you take this step.

Whichever option you take to get free of your debt, make sure that it is the best option for you. A great way to determine which might be best is to talk to an accredited credit counselor who can analyze your situation and give you a proper assessment.

Ronnica Rothe is a graduate with honors from the University of Oklahoma and a current student at Southeastern Baptist Theological Seminary. She works with to help individuals get out of debt and reach their financial goals.
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Business Debt Help – Business Debt Help is Available

There are a number of businesses restructuring tools that a counsellor can offer advice upon. The services are a gradation of financial negotiations with the specific creditors that will result in either a consolidation of the business debts or a settlement of business debt accounts. The business debt help that you will receive will be based upon the specific conditions of the business debts or loans involved, and most certainly upon the business income and the ability to make payments. The solution may only require a business debt consolidation of all of the business debts into a single, more manageable account. Sometimes, simply having one account with an averaged and lowered interest rate that only requires one monthly payment of the accumulated business debt, without separate account fees is sufficient to allow a business to get on top of the monthly bills again. In other individual situations, the business debt may be so large that a stronger form of relief is necessary such as business debt settlement, which seeks to pay the business debt off quickly. In this instance, the consultant negotiates with a creditor or all of the creditors to accept business debt settlement that represents a lowered payment in full for the business debts owed.

A business debt settlement can be an option for nearly every business and can be applied to all types of accounts, including those where the payment is due to the creditor or the payment has been acquired by a third-party debt collection agency. The debt settlement details will vary depending on the business assets and the details of the individual debt, but it usually is a good solution for all of the parties involved. The settlement usually results in a substantial amount of money being reduced from the amount of the overall business debt and ensures that the creditor will receive payment, sometimes at a comparatively faster rate. This is usually the case when the business debt consultant is able to negotiate terms wherein the creditor agrees to accept payment in full of the business debt that is less than the actual amount due. This can be accomplished if the creditor cancels the interest and accepts payment for the actual amount which represents a smaller portion of the debt. The creditor is not actually out any money on the principal of the debt, he just does not collect the full amount of the anticipated interest.

Business debt settlement may be the proper option that lets a small business breathe easier and get on top of monthly bills again. Don’t hesitate to get help that can be the solution that allows your business to stay healthy and successful.

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Debbie White is a contributing writer to and is currently writing some special articles to guide businesses on how to manage debt and avoid bankruptcy. For Business Debt Information and Debt Help Consultation, call toll-free 1-877-850-3328.
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