debt consolidation loan

What You Need to Know about Debt Consolidation in Arizona

August 12, 2013 by arizona

If you are having problems with your finances then the one thing you cannot do is to ignore the problem hoping it will sort itself out. It does not matter if you have been involved in an emergency that has used up all of your savings, lost your job or been irresponsible with credit card purchases. Once you are in difficulty then it is important to sort out of the problem before your credit is damaged, lose your assets or end up in bankruptcy.

Here are some ways that you can sort out your finances and get back to a position that you are no longer struggling to pay your bills.

Document your financial position so that you can identify where your income is being spent, how much debt you have.
Reduce your expenses as much as possible by cutting non essentials that will allow you to put more of your income to paying your debts down as quickly as possible.
Increase your income. This can be difficult but you can approach your employer for extra hours or try to get a part time job on the weekends so that you can pay down your debt to a more comfortable level.
Finance high interest debts like credit card debt with a consolidation loan so that you have a single lower repayment.
Contact one of the organizations and companies that specialize in debt consolidation in Arizona.

Debt Consolidation Loans in Arizona

A loan can be a great way to pay off credit cards that have high interest rates. This is known as a debt consolidation loan and has become very popular because it is relatively easy to obtain a loan at a favorable interest rate if your credit history is reasonable. There are different loans available and these include low or no interest balance transfers, unsecured debt consolidation loans and secured debt consolidation loans.

Here is some information about low and no interest balance transfers.

A great way to reduce your monthly payments is to take advantage of any balance transfer offers. This allows you to transfer your current credit card balance to a credit card at a low or no interest.
Offers lower repayments.
Is usually very quick and can be completed within a week from applying.
Consolidates all of your high interest debt into a single monthly payment.
You can tailor the repayment time for a lower monthly payment over a longer time or a higher repayment over a shorter time.
Many institutions from banks, credit unions and specialist lenders have unsecured loans available at favorable rates.

Advantages of an Unsecured Loans for Debt Consolidation in Arizona

Secured loans for debt consolidation in Arizona usually have the best rates but care must be taken because you will lose your security if you default on the loan.

This type of loan usually has the lowest interest rate available.
Is more likely to be approved even with a poor credit score or credit history.
Can be used if you need to consolidate loans that are too large for unsecured loans.

All of these loans can be a very good way to consolidate your debt and make it easier to repay. The problem with all of them is if you do not change the behavior that caused you to get into problems in the first place then you can end up in the same position with even more debt.

Debt Management Programs in Arizona

One of the more popular ways that people are using when they need debt consolidation in Arizona is to use a debt consolidation company or a credit counseling agency. These organizations specialize in helping people with debt problems. Let’s look at some of the ways that they can help people to stabilize their finances.

They comprehensively look at your finances so that they can understand your income, expense and debt situation.
Produce a budget that is used as part of debt payment plan so that you can afford to repay the debts that you have and still pay your bills and living expenses.
Negotiate with your creditors to adjust payments and interest rates so that you can repay the debts in a timely fashion.
Educate you on how to keep yourself from getting into further debt trouble.
Provide a single payment system where you pay them and they distribute the funds to the creditors making it simper to make your payments.
Provide information on how to budget so you can better handle your finances.

Debt consolidation in Arizona is a way to save your financial situation before you get so deeply in debt that you are forced into bankruptcy. It is a simple process that only takes a few visits and the commitment to stick to a budget and not accumulate more debt.

The Benefits of Debt Consolidation in Arizona

August 6, 2013 by arizona

Modern society presents us all with a virtual minefield of opportunities to take on more debt than we can easily handle. Do any of these “debt enhancers” sound familiar:

An unsolicited credit card with a low interest rate that skyrockets after a year, or if you’re a single day late with a monthly payment!
A layoff or unexpected gap between employment contracts
The uncovered expenses of an automobile accident
The loss of one income in a two income family
The gift a loved one really desires, when “no” is not an option

And this list doesn’t even include the costs of the numerous impulse buying opportunities that highly skilled and well paid marketers are constantly tempting us with. If you are a young person already carrying the burden of Student Loans, or anyone else facing credit card debt problem, take a moment to talk to trusted friends or relatives. It is more than likely that almost everyone you know has taken advantage of the benefits of debt consolidation at some point during their lives. Most will say that debt consolidation was a smart thing for them to do at the time. The ones that care about you will also caution you that using a debt consolidation loan to allow yourself to run up still more debt is a REALLY bad idea!

Here are some factors to consider if you are thinking about a debt consolidation loan:

Debt Consolidation Loans Can Lower the Cost of Getting Out Of Debt

One of the principal benefits of debt consolidation loans, of course, is that the interest rate is almost always lower. More of your money goes to paying down your actual debt, and less goes to profit for the lender.

Homeowners who use a second mortgage as the vehicle for achieving the benefits of debt consolidation may reap the additional benefit that the interest they pay on their debt consolidation loan may be tax deductible.

Debt Consolidation Loans Can Get You Out Of Debt Sooner

The combination of low minimum payments and high interest rates can make progress on paying down some credit card balances nearly impossible. People sometimes find that the monthly interest charge added to their balance, plus the few new purchases they simply had to put on the card, more than wipe out any reduction in the outstanding balance from the small monthly payments they make. Properly constructed debt consolidation loans assure you that each monthly payment will result in at least some progress toward reducing the balance.

If your debt consolidation loan allows it, making occasional payments, even small ones, between your scheduled payments, can significantly shorten the time needed to pay off the loan. Talk to your lender for the surprising details.

Debt Consolidation Loans Reduce Stress

Keeping track of the balance due on a half dozen consumer loans with different payment dates each month can be a real nightmare. With a debt consolidation loan you have just one single payment to worry about, saving you time and anxiety. You always know the exact amount you must pay, and the date that one payment is due. Having the payment automatically deducted further simplifies matters.

Some who have struggled with too much debt, and too many payments, for too many years, insist that the most single most important benefits debt consolidation brought to them was ending the embarrassing and humiliating collection calls that always seemed to come when guests were in the home or dinner was on the table.

Debt Consolidation Loans Make Wise Investments Possible

Life is a precious gift. There isn’t much we can do to change what has happened in the past, but there is much we can do to shape the future. One of the principal benefits of debt consolidation is that it can provide the cash flow to make meaningful investments in the future that would otherwise not be possible. These investments may be in the form of minor home improvements that lower fuel consumption cost while adding to the resale value of the home, or educational opportunities to increase future our earning potential.

Importantly, part of that extra cash flow may also be used for increased contributions to an IRA or the 401(k) plan offered by your employer. Today’s typical American can expect to live to 85 or older. Social Security and Government health benefits are intended to cover only a portion of our post retirement living expenses. Getting money safely invested in a tax sheltered retirement account is vitally important, and the earlier one starts, the better. Yes, that does mean you should start saving for retirement even if you are still paying down old debts.

Remember, however, that you will not enjoy the benefits of debt consolidation if you are unable to manage impulse buying, or if your household budget contains fixed costs such as mortgage payments, real estate taxes, or similar costs associated with the maintenance of a second home. In cases where the benefits of debt consolidation alone are insufficient, the services of a professional budget advisor may provide the best path to regaining control of your current and future financial security.

Aim For Financial Stability With Debt Consolidation

June 3, 2013 by arizona

Financial independence, while a good goal, is sometimes not enough. If you want to recover from your debt situation, you may want to opt for financial stability instead. You can easily confuse the two but let us define them for you.

Financial independence refers to your ability to supply your current needs without putting yourself in debt. Financial stability gives you the same but it also goes further – it allows you to pay for unexpected expenses that are beyond your usual budget.

Financial stability can be achieved by one thing: savings. This is the best way for you to prepare for any incident is by growing your emergency or reserve fund. That way, you do not have to think about where you will get the extra amount that you have to raise immediately. You can simply dip into your savings without compromising your usual expenses or borrowing money just to finance that emergency need.

This is easy if you have enough money to save. But how do you aim for financial stability when you are in the midst of a debt crisis? Surely you have to prioritize your debt payments right? While your debts may be a priority, you have to realize that your savings should be prioritized as well. It will help you keep up with debt payments even when an emergency situation arises. But how do can you afford both?

This is when debt consolidation becomes the perfect debt solution. Let us identify the reasons one by one.

First of all, debt consolidation allows you to make lower monthly payments. Although the debt balance is not reduced, the payment term is extended over a longer period and that lowers the contribution every month. This will free up some funds that can be used to grow your savings.

Another reason why debt consolidation can help you achieve financial stability is through the easy payment method that it lays out for you. All debt consolidation types will make it easier to pay off debts because of the single payment scheme. This relieves you from exerting too much effort in monitoring debts and will also minimize late payments. Because of this, you get to focus more on growing your income – which in effect, will help you increase the amount that you can put into your savings.

Lastly, you can benefit from the personal finance education that debt consolidation will teach you – at least if you opted for debt management. To be financially stable, you need to practice various financial management skills and be consistent with it. These include creating a budget and making sure that you will stick to it. Smart spending is also something that you need to implement so that you will not waste your money.

What you have to remember is that financial stability cannot happen overnight. You have to realize that it takes time and you have to be patient in sticking to your goals. And once you have achieved both debt freedom and financial stability, make sure that you will never leave that financial state ever again.