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Debt Consolidation

Will Debt Consolidation Negatively Impact Your Credit?

Most people who are in debt want an affordable way to pay it off either quickly or over an extended period of time. Debt consolidation is a common solution, and there are two ways to go about.   Debt consolidation loans are the first options that comes to mind. A debt consolidation loan is a personal loan taken out with the purpose of paying off several other debts and getting …Read More

#AskanExpert: Why is a Home Equity Loan so Hard to Get?

Q. We’ve used our credit cards too much and gotten ourselves into a stressful situation. We make a decent income, but the monthly payments are putting financial strain on our budget. We would like to get a home equity loan to pay off all these cards and just have one payment, but we do not qualify for a new loan due to our debt-to-income ratio. Not too long ago, my …Read More

#AskanExpert: Can I Back Out of a Debt Settlement Program?

Q. In March of 2018, I decided to go through a debt settlement program. Big regret! The program they put me on is for 5 years. They have settled with one company thus far and they take their settlement fee off the top which is more than the monthly amount they are paying the creditor. Their method is baffling. I feel I made a bad decision and was wondering if …Read More

#AskanExpert: Should I Consolidate All My Credit Card Debt?

Q. Can the NFCC help consolidate all credit cards, even ones under $500? Dear Reader, If you are considering loan consolidation to repay your credit cards, we encourage you to think about it carefully. We can also connect you with NFCC-certified credit counselors that can help you explore this strategy. But, just like a credit counselor, we can only offer advice, guidance and education.   Loan consolidation usually works best …Read More

“Spring Cleaning” Your Wallet

From the birds tidying up their nests to the gardeners preparing their land, spring is the time that we clean away the cobwebs of winter and get ready for the year ahead. But while many of us take part in an annual spring cleaning of our homes, few of us extend that same principle to one of our messiest places: our finances.   Cleaning Up Your Finances The idea of …Read More

When Should You Consolidate Credit Card Debt?

The Reality of Using Credit Cards Between card designs, rewards programs, and one-step purchasing, it can be easy to become credit card complacent, so comfortable swiping for everything that you start to overlook the fact that credit cards are a form of debt. Every time you use your credit card, you borrow the money for each purchase from the issuing bank — and you are responsible for paying that money …Read More

Debt Consolidation vs. Debt Settlement vs. Debt Management Program

What is Debt Consolidation? Debt consolidation typically involves getting a lower interest loan to pay off multiple high interest secured or unsecured debts, such as credit cards or payday loans. The consolidation loan is generally secured against the borrower’s assets such as a home or a car.  Because credit card debts have such high interest rates, even an unsecured consolidation loan can significantly reduce the borrower’s monthly payment. For some this …Read More

Ask An Expert: I’m struggling to make payments on my student loan. I have all federal and Perkins loans. Should I consolidate them to get lower interest?

A: Dear reader, consolidating your federal student loans could be an option to help you manage your payments and potentially avoid default. However, combining your loans may help you for other reasons that do not necessarily include lowering your interest rates. If you are thinking about consolidation, you can start by looking into Direct Consolidation Loans. This type of loan offers a consolidation option at no cost to you through …Read More

The Debt-To-Income Ratio Explained

Dear Kim, I am considering buying my first home. I have been doing some research and keep hearing about debt to income ratio. What exactly is the debt-to-income ratio and how does it affect my mortgage application?   Dear Reader,   The debt- to- income ratio, or DTI, is a ratio that lenders use to determine how much of your monthly income is being used to pay your debt.  There are …Read More

Will Your Kids Inherit Your Debt?

By Jason Alderman Many people finally get around to writing a will in order to safeguard their assets for their heirs. But what if you’ve got the opposite problem: Your nest egg was decimated by the recession, bad investments, or simply living longer than expected and now you’ve got a mountain of bills you can’t pay off. Will your kids inherit your debts after you die? The short answer is, …Read More