 Wysłany: Śro 9:58, 14 Mar 2007 Temat postu: New Debt Consolidation Resource |
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| Debt consolidation entails taking out one loan to pay off many others. This is often done to secure a lower interest rate, secure a fixed interest rate or for the convenience of servicing only one loan.
Debt consolidation can simply be from a number of unsecured loans into another unsecured loan, but more often it involves a secured loan against an asset that serves as collateral, most commonly a house. In this case, a mortgage is secured against the house. The collateralization of the loan allows a lower interest rate than without it, because by collateralizing, the asset owner agrees to allow the forced sale (foreclosure) of the asset to pay back the loan. The risk to the lender is reduced so the interest rate offered is lower. Sometimes, debt consolidation companies can discount the amount of the loan. When the debtor is in danger of bankruptcy, the debt consolidator will buy the loan at a discount. A prudent debtor can shop around for consolidators who will pass along some of the savings. Consolidation can affect the ability of the debtor to discharge debts in bankruptcy, so the decision to consolidate must be weighed carefully. Debt consolidation is often advisable in theory when someone is paying credit card debt. Credit cards can carry a much larger interest rate than even an unsecured loan from a bank. Debtors with property such as a home or car may get a lower rate through a secured loan using their property as collateral. Then the total interest and the total cash flow paid towards the debt is lower allowing the debt to be paid off sooner, incurring less interest. In practice, many people are in credit card debt because they spend more than their income. If that habit continues, the consolidation will not benefit them much because they will simply increase their credit card balances again. Debt Consolidation Articles Apply online Bad Credit Debt Consolidation Consumer Debt Consolidation Contacts Debt Consolidation Form Debt Consolidation Calculator Debt Consolidation Faqs Debt Consolidation Information Debt Consolidation Options Debt Consolidation Program Debt Consolidation Refinance Debt Consolidation Services How We Help Privacy Policy Site Map Support Testimonials Links page 1 Links page 2 Links page 3 Links page 4 Links page 5 Links page 6 Links page 7 Links page 8 Links page 9 Links page 10 Links page 11 Links page 12 Links page 13 Links page 14 Links page 15 Links page 16 Links page 17 Links page 18 Links page 19 Links page 20 Links page 21 Links page 22 Links page 23 Links page 24 Links page 25 Links page 26 Links page 27 Link s page 28 Links page 29 Links page 30 Links page 31 Links page 32 Links page 33 Links page 34 Links page 35 Links page 36 Links page 37 Links page 38 Links page 39 Links page 40 Debt Consolidation Forum Debt Consolidation Blog |
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