Your Questions About Debt Consolidation Loans

Debt Consolidation

admin answers:

Well, I don’t promise anything but
people in debt often seem to find some help here :

http://credit-cards.ebookorama.com

http://credit.ebookorama.com

http://credit-repair.ebookorama.com

and here http://finance.ebookorama.com
good luck!

admin answers:

Bankruptcy should always be a last resort. Have you tried to make payment arrangements with the creditors. (payments you intend to keep) They will usually be anxious to receive monthly payments, because if you go bankrupt they may get nothing.

admin answers:

FFEL and Direct Stafford Loans:

FFEL Stafford Loans can be issued to undergraduates and graduates. The student must be enrolled at least half-time to be eligible for this loan. The loan amount depends on the student’s grade level in school and dependency status and is not based on financial need. The lender for the FFEL loan is a private lender such as a bank or Credit union. The lender for the Direct loan is the U.S. Department of Education.

FFEL and Direct Plus Loans:

Student Loans offered to parents of students enrolled in eligible education institutions. The undergraduate student must be a dependent and enrolled at least half time. As of July 1, 2006 PLUS Loans are also available to graduate and professional students at participating and eligible postsecondary institutions. Plus Loans may be in amounts that cover up to the entire cost of education (including living expenses), less other financial aid. Eligibility is based on the parents or graduate students in question not having an adverse Credit history. Additionally, the PLUS Loan program is now available for graduate and professional students to borrow to finance their own educations. The program is expanding away from a parent-only program to include graduate school students. The new option is commonly referred to as the Grad PLUS loan.

Private Student Loans:

As a good rule of thumb, students should only apply for private student Loans if they have exhausted all other Federal Student Loan options. Private Student Loans are Credit risk based. Therefore, they will usually come with a higher interest rate than Federal Student Loans. As well, Private Student Loan lenders may charge higher fees for the issuance of the loan. A loan with a low interest rate but high fees can cost more than a loan with a somewhat higher interest rate and no fees. Consolidating a private student loan is also Credit risk based. If your Credit is not ideal, a qualified co-signer can be added to become eligible for the consolidation.

Federal Perkins Loans:

Federal Perkins Loans can be issued to undergraduates and graduates. The student does not have to be enrolled at least half-time to qualify for this loan. There are allowable loan maximums depending on the student’s grade level in school. The amount a student may receive will depend on financial need, other aid received, and availability of funds at school. The lender for this loan is the school; therefore the student will repay the school.

You can get a free consultation by filling your information on this form: http://freedomstudentloans.com/student_loan.php

admin answers:

If this is like a personal loan where they put the money into your account or gave you a check to do as you please with (well, you were supposed to pay off your loan) there isn’t a way for them to track how you spent it.

The lender would have been smarter to have you provide all your student loan statements, and then paid them off for you. Too many people do what you are thinking of doing….bypassing what they really got the loan for and paying for other things.

I agree with the other guy, you are going to regret this.

admin answers:

A debt consolidation loan wouldnt affect your Credit in a negative manner, but try not to close the lines of Credit that you have now. So if you currently have like 3 Credit cards you are paying on and you will include those balances in the consolidation, then keep like 2 of them open so that you still have Credit (obviously you won’t have the balances on them anymore though). Having little or no Credit can be just as bad as having blemished credit.

I made the mistake of paying off balances and closing cards, which did affect my score negatively. You should always have Credit available, but you also want to make sure you don’t have a card with a $15,000 limit and no balance because that makes you a risk as well with all that Credit available. You should then call the Credit card company and have them lower your limit…I know it sounds stupid, but it will effect your score.

Ultimately, paying off debt will do wonders for your score and your idea of consolidating will not only allow you to pay down your debt faster, but it will definitely help when purchasing a home….as long as you are on time paying the consolidation.

Beware of those programs that are more Credit counseling though, cause those could effect your situation if you are not having trouble now. There is a difference between an actual debt consolidation loan and the Credit counselor thing where they call and work down your interest and you pay them one lump sum each month and they distribute the payments. If you are talking about this type, then I say continue on the path you are on.