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Non Profit Debt Consolidation – Should You Use It?

September 23, 2011

Non Profit Debt Consolidation

Consolidating your loans with a non profit debt consolidation company can enable one to enjoy many benefits and peace of mind when it comes to the debt that they have. If you are unfamiliar what consolidation does, well, a profit or non profit debt conslidation company basically allows you to take out a loan from them which you pay off all of your other creditors with.

non profit debt consolidation

This process more times than not equates to you getting a lower interst rate because you are now paying on just one debt, the loan they gave you which is a secured loan, which gnerally have much lower interest rates, as well as fixed rates than the rates you pay to creditors. Many times during this process of non profit debt consolidation, your consolidation companys tries and is often times successful at negotiating a lower debt total which means that the original debt you had will be lowered.

Non Profit Debt Consolidation Benefits

The word non profit right off the bat lets you know that they aren’t out to nickel and dime you for everything that you have, non profit meaning that their goal of operation isn’t funded off making profits off thier customers like for profit organizations are. Here are some benefits you can enjoy my using a non profit debt consolidation service.

  • Being that they are funded mostly by grants and donations for large companies seeking tax write offs, your service fees are going to very minimal to nothing at all compared to often times high fees with for profit organizations.
  • Non profit debt consolidation companies not only try to negotiate the debt total you owe, but will also try to negotiate any late fees, annual interest fees and any other additional charges that come with paying to a traditional creditor.
  • Non profit debt consolidation will allow you to not get calls from creditors anymore because your consolidation provider is the sole communicator with them after you start consolidation.
  • Free advice in the form of money management, creating a personal budget as well as free counseling for any questions that you have pertaining to getting out of debt.
  • Consolidation in general offers longer repayment terms which can allow you to pay lower monthly payments because the life of the loan is longer than what you were paying with other creditors. Although this means that you are going to be paying more interest payments, non profit debt consolidation organizations for the most part don’t charge a fee for paying higher than the minimum, so you can always up the payment later on.
  • As you begin paying payments to your consolidator, and they pay your debt off to your old companies you had debt with, your credit will start to go up significantly. This usually takes place after about a year of payment to your non profit debt consolidation company.

Avoiding Non Profit Debt Consolidation Scams

Although non profit debt consolidation can be an awesome method for eliminating your debt, there are often times scams out there, many in the form claiming the are part of a religious organization among others which can be legit or not at all. The below describes how to spot a scam as well as how to avoid them.

  • There are many non profit debt consolidation companies that boast their free or cheap service and it may look like it in their terms as well but it is far from the truth as these scams actually pay a certian portion of your loan payment to your old creditors for profit. The best way to spot this is to first off, before you fill out any personal information, ask them for proof of non profit which comes in the form of a (501(c)(3)).
  • Also a great way to verify if the non profit debt consolidation company you are thinking about working with is part of one or more of the following; The Better Business Bureau who keeps track of all the good and bad consolidation comanpies, or you can check if they are part of the Internal Association of Professional Debt Arbitrators (IAPDB) and/or The Association of Debt Settlement.
  • Talk to friends, credit counselers, lawyers as well as visit online forums to check if the non profit debt consolidation company you are looking to go with is reputable. (This is optional and can be done while you are doing the above methods).

Above all, don’t go with non profit debt consolidation companies who are offereing miraculous debt solutions like getting out of debt within months or something similiar. Usually if it sounds to good to be true, it probably is. By using these methods of spotting scams, you can pick out the good from the bad and settle with an accredited non profit debt consolidation company that will help you get out of debt and stay out of debt.


School Loan Consolidation – Overview & Companies

September 23, 2011

School Loan Consolidation

School loan consolidation can be done for many types of loans pertaining to schoo like college, vocational school among many others, and can be done on both federal loans as well as private loans. If you aren’t familiar with how school loan consolidation works, the basic overview of the process consists of a consolidation company essentially paying off your school loans, and then you pay a monthly payment to them only.

school loan consolidation

The school loan consolidation process not only will allow you to only have to worry about paying one company, but also can result in lower monthly payments and debt total as consolidators try to negotiate a lower debt as well as lower interest rates, and offer longer repayment terms which can mean lower monthly payments.

Althoug this can be great for some, it should only be used for certain debt situations which are discussed below. ALso discuseed is how your rates are created and some of the benefits as well as tips to follow and companies to use if you choose to use school loan consolidation.

Who Should Use School Loan Consolidation?

If you aren’t having trouble paying your student loan payments each month than the act of school loan consolidation will probably not benefit you, but if you can’t afford them, then consolidating will drop your monthly payment total by providing you with a longer repayment period, which lowers the monthly dues but means that you will pay more in interest because of more years of repayment.

Another alternative to school loan consolidation is the Income Based Repayment Plan (IBR) available now on most all loans. This is where you pay a monthly fee of what is usually around 15 percent of your income. It should be known that once someone choose to use the Income Based Repayment Plan, their repayment period is immediately set to 25 years from when the opted to use it, but you can use the IBR and pay it off faster when you have more income coming in each month. If at the end of the 25 years, you have debt left, it is wiped away and taxed as income.

School Loan Consolidation – How It works & General Information

  • The rate that you will pay for school loan conslidation is based of this equation; It is the difference between your gross income and $16,245 which is considered to be 150 pecent of  a poverty level of income.
  • First off federal school loans cannot be consolidated with private student loans they must be consolidated seperately.
  • One of the main benefits of fedeal school loan consolidation is not credit based so pretty much anyone can qualify without having to provide a cosigner as private student loan consolidation needs you to provide a good credit score.
  • If a parent of relative co signed for a loan, the co signers name can be taken off the account after about 2-4 years after a person starts school loan conslidation. This provides a chance for the student to start building a credit score as well as makes the  co signer no longer liable.

TIPS For School Loan Consolidation

If you choose use a school loan consolidation company, here are a few tips that can help you along the way.

  • First off, a few questions you should ask the potential consolidator if there are any prepayment penalties, these restrict your from paying over the minimum and you don’t want these, are there activation fees which are fees for starting the service and can be avoided through certain conslidators like non profit organizations, and what is the maximum repayment term and maximum interst rate.
  • Compare different school loan consolidation companies before filling out any personal information. This can help you find the best interest rate, as well as a good lender.
  • Do your best to consolidate your school loans during your grace period as interest deductions are usually granted during this period/
  • Interest rates change on July 1st of each year so stay knowledgable on what is going on with interest rates, and if they are looking like they are goin up, then it will be a good call to go with the current interest rate, and vice versa.

School Loan Conslidation Companies

Here are some companies that have proved reputable for school loan conslidation, and are worthy to check out if you are going to consolidate.

  • Next Student
  • Loan Approval Direct
  • US Department Of Education

Credit Card Consolidation Loans Can Help You Get Out Of Debt

September 23, 2011

Credit Card Conslidation Loans

Credit card consolidation loans can provide great benefit to those who are overwhelmed with their credit card debt. If you are unfamiliar with what credit card consolidation loans are, they are basically a loan that a consolidation company gives you to pay off your credit card bills, and enjoy just one monthly payment as well as what often times come with lower interest and a lower monthly payment.

credit card consolidation loans

Benefits of Credit Card Consolidation Loans

  1. Consolidation will drop the interest rate that you are paying on your credit card debt, as a loan through a credit card consolidation service is a secured loan, which always offers lower interest than that of credit card companies. The money you save in interest can be used towards paying off your bills, money you wouldn’t have had if you didn’t consolidate. Lower interest also equates of lower monthly payments, as the interest rate determines how much you pay monthly, also the repayment terms are usually extended which will drop your total monthly payment.
  2. You only have to pay one payment each month, and you no longer will get calls or call your creditors as your consolidation company does it all for you.
  3. An all an all lower debt total can come out of credit card conslidation loans as consolidation companies often times can negotiate lower payoff totals.
  4. You can also get an even lower rate by using your property as collateral, which is basically the protection for the lender who knows that in the event of default, they take the property, but with lower monthly payments, you will have enough money to pay off your debt.. Also, you don’t have to have collateral in order to consolidate.

Finding Reputable Credit Card Conslidation Loans Service

There are three things which you should check when looking for a provider for credit card consoliation loans, which one or more of them will prove that they are accredited and a reputable conslidation company.

  • They are listed in the Better Business Bureau.
  • Check if they are part of Internal Association of Professional Debt Arbitrators (IAPDB).
  • Also, are they are part of The Association of Settlement Companies.

Who Should Use Credit Card Consolidation Loans?

You want to use consolidation loans if you have few options left, which it is suggested to make a budget first and try to manage your finances, as just like with anything there are negative aspects of credit card consolidation loans. Credit card conslidation loans should be used by those who are buried in debt and their monthly payment are too much compared to what they can afford as well as those who are either behind in their payments, or have flat out stopped paying. Also, if you are having trouble tracking all of your monthly payments, credit card consolidation loans are great to manage your debt.

The Right Time For Consolidation

When it comes to the right time for people to take out credit card conslidation loans, there is a pretty basic explanation for this. You shop around for interest rates that are lower than what you are paying on your credit cards. If interest rates in consoliation companies are higher, than the act of consolidation will not benefit you. Right now, interest rates are at an all time low it is a great time to get credit card conslidation loans, but you can also find out if the time is right by keeping track of the interest rates in the consolidation market.

Finding Good Credit Card Consolidation Loans Companies

To ensure that you are doing service with a reputable provider, you can do one of three things:

  • Conslidate with your personal bank.
  • Or you can call your credit card lenders who will assist you in finding a conslidation company who provides honest service.
  • You can also seek the consultation of a lawyer or credit counseler for information on credit card consolidation loans.

Bad Credit Consolidation Loans Overview & Providers

September 23, 2011

Bad Credit Consolidation Loans

If you happen to have a bad credit score and are entrenched in debt and feel as if there is no escape, then a bad credit consolidation loan can be an excellent resource to help you out in many ways, like lower payments as well as the possibility of reducing your total loan debt. Below we will elaborate on the suject of bad credit consolidation loans like the process, benefits and how to obtain them, as well as provide you with 3 reputable companies that provide thiese bad credit consolidation loans. This way you can attain the knowledge you need on the subect as well as resource on how to get the process started if you choose to do so.

bad credit consolidation loans

Bad Credit Consolidation Loans Overview

How Does It Work?

Basically a consolidation loan is when you take out a large loan through a conslidation company and use it towards paying off all of your bills, which in turn means you only have one bill to pay on and that is the loan that the conslidation company gave you.


To make the process of learning about bad credit consolidation loans, we have made a bullet point list of different things that a consolidation provider can do for you if you have bad credit. Also, although that we are talking about band credit conslidation loans, you can also just consolidate one loan, you can still enjoy the benefits of consolidation.

  • First off they can lower your monthly payments where you can actually afford paying off your debt without having to fork your entire paycheck over each month. This is done by stretching out the repayment period from what you were paying on as well as the bad credit consolidation loans representatives contact each one of your creditors and try to negotiate both lower debt totals as well as lower interest.
  • Also, many people with bad credit consolidation loans find that their providers actually counsel them with ways of getting back in control of their finances, managing the debt that they have as well as avoiding more debt from piling up.
  • Bad credit consolidation loans allow you to only have to pay one single monthly payment, instead of having to worry about paying multiple payments each month.
  • You can also begin to build up your credit score as you will have a more manageable monthly payment that you can pay on time.
  • They payments are usually based off a percentage of your income, so you will know that you will be able to afford it each month.
  • You don not have to have any collateral to get bad credit consolidation loans.
  • Often times, conslidators will give you a grace period of anywhere from 3 to 6 months where you do not have to pay monthly payments during that time, leaving you with a chance to build up and emergency fund.
  • Probably the best of all when it comes to bad credit consolidation loans, you conslidation company deals with your creditors at all times, which means no more harassing calls.

How To Get Bad Credit Consolidation Loans

  • If you want to see if you will qualify for bad credit consolidation loans, you can do so by going to a consolidation companies website, or in person, and you will need to fill out some general personal information, information that will introduce to them your specific situation which is checked out and evaluated by their counseling professionals. They will then review all of your information and contact you when they have tailored out a plan for your situation.

Things To Keep In Mind

  • Bad credit consolidation loans provide people with lower monthly payments, which is great, but you will now have more money each month on what you saved on the lower monthly payment. Due to this, you must save and budget this money and not spend it, so that you don’t end up in the position you were in before consolidation.


The requirement to qualify for bad credit consolidation loans are:

  • You must be at least 18 years of age.
  • Be able to provide proof of your place of employment, as consolidation companies want to know that you have the financial resources to at least pay your monthl dues to them.
  • Proof that you are a US citizen or a citizen of whatever country your are applying for conslidation.

Bad Credit Consolidation Loans Providers

Also, before we get into bad credit consolidation loans providers, you can actually talk directly to your creditors to inquire about conslidation services to go through. This may sound weird, but creditors want to get paid off any way possible, so they know they are gauranteed to get paid if their client goes through conslidation.

As far as bad credit consolidation loans go, there are many great providers that can help you get out of a rut. Here are 3 providers who assist those who have bad credit with consolidation:

  1. LendersMark
  2. Direct Lending Solutions
  3. Choice Personal Loans

Debt Consolidation Loans For Bad Credit

September 21, 2011

Debt  Consolidation Loans for Bad Credit

Bad credit can be a major source of stress in peoples lives. It can prevent you from being able to get the car or home that you dream of. Many canʼt afford such big purchases all in one payment so a loan is the only option. Having bad credit however makes your chances of getting that loan slim to none. Debt consolidation loans for bad credit can be a great solution to this problem. A consolidation loan is basically where all your existing payments are merged into one monthly payment. The advantage of this is that it makes it more easy to keep up with your payments and also vastly reduces the amount youʼre paying in interest.

debt consolidation loans for bad credit

There are two types of debt consolidation loans for bad credit. The first of which is called an unsecured consolidation loan. With this type of loan you do not need to put up anything as collateral, such as your car or home. This is a particularly appealing option for those who do not want to take any risk with their home when consolidating their debts. It should be noted that with this type of loan the interest rates are usually higher since the risk for the lender goes up without anything as collateral.

The other type of debt consolidation loans for bad credit option is a secured consolidation loan. As you may have guessed this is where you are required to put up something as collateral. For most people this will mean putting up their home. You should exercise great caution when thinking of doing this as though it may be easy to get the loan your risk losing your home if youʼre unable to make the payments each month.

Many people think that a debt consolidation loans for bad credit will reduce the amount of debt they are paying. This can be true, but the place where you are saving money is in the reduced interest rates thanks to the debts being combined. This is not the only benefit however.

Benefits of Debt Consolidation Loans For Bad Credit

Some of the other benefits include -

• A lower interest rate

• Your debts are made more manageable by being merged into fewer payments

• Lower your monthly payments

Waive late fees

• Avoid bankruptcy

Of course there are other options that people consider when their finances get on top of them. One of the most popular ones is to fie bankruptcy . The would not be advisable however due to the fact the once you file bankruptcy you cannot do it again. This may not seem like a problem but if you were to find yourself with financial troubles again in the future it would not be an option for you. Also when you file bankruptcy it is a matter if public record and could potentially hurt your chances of employment in the future

Since the recession has hit many more people have found themselves with bad credit. Of course it cannot be blamed only on this factor but it certainly hasnʼt helped  situation. Debt consolidation loans for bad credit are on of the best solutions to the problem of mounting and unmanageable debt.

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