Student Loan Repayment for College Graduates
by Kevin Hodge
If you've graduated recently, or are in your final semesters, it may be time for you to start thinking about student loan repayment. One of the most basic things to remember for those who have borrowed money through the Federal Stafford Student Loan program is that you have options for the way you repay your loans. Student loans are typically set up on a ten-year repayment program, with a set minimum payment due every month. However there are options that could make a big difference in the amount you pay each month and the total amount paid in the long run.
Graduated and Income Sensitive Student Loan Repayment Options
You may qualify for a graduated or income-sensitive repayment plan. These can be great for graduates who are unsure about how much money they will be making as they begin their careers.
A graduated plan starts with relatively small minimum payment which is scheduled to increase over time. Income-sensitive payment plans adjust the minimum payment based on how much money you are making at the time.
Consolidation Loan for Student Loan Repayment
If you choose to take out a consolidation loan, your options may change. The monthly payment may be higher but you may end up paying less total on the loan in the long run.
Remember you can only consolidate once, so be sure that you are getting the best interest rate and payment plan with your consolidation. Shop around to various lenders if need be. Be sure to speak with your school's financial aid advisor and a representative of your lender bank before deciding how to go forward with your loan repayment.
Repayment Grace Period (Deferment)
The good news is that no matter what type of repayment plan you choose, you normally have six months after graduating before having to begin making payments. Federal student loans are typically deferred until six months after a student is no longer enrolled in school for at least half time. This can be a tricky one if you decide to take a semester or two off during your education. Just remember, everyone is entitled to one, full, six-month deferment, regardless of whether they graduate, drop out from partying too much, or have to stop and go earn more tuition money. (Both happen to the best of us.)
If you are out of school for a period of less than six months at any time, that full six-month deferment you're entitled to will still be there when you really are finished with school. It's not like you're using up any of that time for taking just one semester off. If you stay out for six months or more before you go back though, you will likely be asked to start making loan payments directly after graduation, because your six month deferment has already been used.
Get Help with Choosing the Best Repayment Plan
Student loan repayment can be a dreaded situation for those who have a high student loan balance. Be sure to visit with your financial aid counselor to discuss all of your options. They may have some ideas for you to make the situation less stressful. Armed with information and sound advice, you can choose the best student loan repayment option for you.
วันอาทิตย์ที่ 22 มิถุนายน พ.ศ. 2551
วันเสาร์ที่ 21 มิถุนายน พ.ศ. 2551
Online Student Loans: Skip Financial Worries Without Any Stress
Online Student Loans: Skip Financial Worries Without Any Stress
by Michal John
The main motive behind pursuing higher education is to achieve something special in life. With education, you can access opportunities which will enable you to make your life successful and adds a meaning to it. Quality education now comes with a very heavy price tag and it is impossible for students coming from financially weaker sections to cover the expenses. That does not mean that the students should get disheartened. To help these students in particular, lenders are now offering financial grant in the form of Online Student Loans.
These loans are affordable and are offered by most of the lenders. Any student in particular can source these loans to cover the expenses of any particular course. With the assistance of these loans, all the related expenses on education such as paying course fee, library dues, hostel and mess dues, purchasing equipments, computers, books etc.
These loans are classified in to 3 basic categories. They are * Government student loans * Parent student loans * Private student loans
In case of government student loans, the loan amount is approved by the government's education department, which is directly granted to the students. The terms and conditions are quite reasonable and needs to be repaid after the completion of course.
On the other hand, parent student loans are offered to the parents of those students who are dependent. Here, the repayment has to be done by the parent on completion of their wards education.
Private student loans can be sourced from lenders such as banks, financial institutions etc. student has to repay the amount after completing the course. However the rate of interest levied will be slightly higher.
As the name refers online student loans can be availed by applying online. There are numerous lenders offering these loans and a proper research will assist you to derive these loans with suitable terms and conditions. The approval is instant and free from any hassles. Moreover, with these loans, you get rid from the stress of arranging funds to cover your education expenses
by Michal John
The main motive behind pursuing higher education is to achieve something special in life. With education, you can access opportunities which will enable you to make your life successful and adds a meaning to it. Quality education now comes with a very heavy price tag and it is impossible for students coming from financially weaker sections to cover the expenses. That does not mean that the students should get disheartened. To help these students in particular, lenders are now offering financial grant in the form of Online Student Loans.
These loans are affordable and are offered by most of the lenders. Any student in particular can source these loans to cover the expenses of any particular course. With the assistance of these loans, all the related expenses on education such as paying course fee, library dues, hostel and mess dues, purchasing equipments, computers, books etc.
These loans are classified in to 3 basic categories. They are * Government student loans * Parent student loans * Private student loans
In case of government student loans, the loan amount is approved by the government's education department, which is directly granted to the students. The terms and conditions are quite reasonable and needs to be repaid after the completion of course.
On the other hand, parent student loans are offered to the parents of those students who are dependent. Here, the repayment has to be done by the parent on completion of their wards education.
Private student loans can be sourced from lenders such as banks, financial institutions etc. student has to repay the amount after completing the course. However the rate of interest levied will be slightly higher.
As the name refers online student loans can be availed by applying online. There are numerous lenders offering these loans and a proper research will assist you to derive these loans with suitable terms and conditions. The approval is instant and free from any hassles. Moreover, with these loans, you get rid from the stress of arranging funds to cover your education expenses
Online Student Loan Consolidation
Online Student Loan Consolidation
by Archana Sarat
The concept of student loan consolidation is to simplify the complicated loan repayment procedures and add the benefits of extended pay back period reducing the monthly liability of the students to a great extent. Supplementing the efforts of consolidation this process is available online. They are provided with the facility to apply for a loan consolidation over the net. It is not only convenient but also very fast. You can submit the form in minutes. It gives you flexibility by allowing you to login and log out of the form as per your convenience to update the information required as and when you get the details. Loan details can be uploaded in no time. The information submitted is safe with the help of specifically designed digital encryption. You can access and submit the application from anywhere. After completion you can enter your individual account created and check the status of your application and update details if any. You can also have a printed copy of the details submitted for future reference. No application fees and credit verification process for online federal loan consolidation. You are required to submit contact details such as social security number, date of birth, address, phone number and driving license number. Reference details of at least two individuals who can friends or relatives. They should not live you in the same address. The process assures the fact they will not be disturbed during the process. Online application forms also contain the tutorials section which helps you to clarify the doubts encountered in filling and filing an online application. It also helps you to locate the information required and gather the same for future reference. Apart from tutorials you can also contact counselors over phone to clarify your doubts on the process and thereby submit the form.
by Archana Sarat
The concept of student loan consolidation is to simplify the complicated loan repayment procedures and add the benefits of extended pay back period reducing the monthly liability of the students to a great extent. Supplementing the efforts of consolidation this process is available online. They are provided with the facility to apply for a loan consolidation over the net. It is not only convenient but also very fast. You can submit the form in minutes. It gives you flexibility by allowing you to login and log out of the form as per your convenience to update the information required as and when you get the details. Loan details can be uploaded in no time. The information submitted is safe with the help of specifically designed digital encryption. You can access and submit the application from anywhere. After completion you can enter your individual account created and check the status of your application and update details if any. You can also have a printed copy of the details submitted for future reference. No application fees and credit verification process for online federal loan consolidation. You are required to submit contact details such as social security number, date of birth, address, phone number and driving license number. Reference details of at least two individuals who can friends or relatives. They should not live you in the same address. The process assures the fact they will not be disturbed during the process. Online application forms also contain the tutorials section which helps you to clarify the doubts encountered in filling and filing an online application. It also helps you to locate the information required and gather the same for future reference. Apart from tutorials you can also contact counselors over phone to clarify your doubts on the process and thereby submit the form.
Government Student Loan Consolidation
Government Student Loan Consolidation
by Archana Sarat
The cost of education is always on the rise. To enable students to cope up with this upward trend and continue with there higher education they are offered various study loan schemes. More and more students are availing these study loans to pursue with their goals. Government Student Loan Consolidation scheme offers various options to reduce the monetary responsibility of students under certain circumstances. Students who availed loans under the Federal Students Loan scheme are eligible for this Consolidation. They are required to meet certain conditions for availing this facility. The number of loans availed under the Federal student loan scheme should be more than one. Where there is only one loan consolidation does not arise. The student should have either paid the monthly installments at least for 3months or is in the 6 months grace period after post graduation. Loans can be consolidated whether subsidized or not. The consolidation will be done separately for subsidized and unsubsidized loans enabling the lenders to have an individual track of them as required under law. While the consolidation processes are different the students are required to make a single payment. Consolidation does not amount to waiver. Loans are consolidated into one, technically are the loans are repaid and a new loan is created. A valid repayment process exists. Monthly liability depends mainly on the repayment period available, loan amount and the rate of interest prevailing. Advantages of consolidation are that students are given extended time period for paying back their loans consequentially reducing their monthly commitment, it is more beneficial as it reduces the complicated procedure of tracking due dates of various loans. It is to be understood that though the monthly commitment reduces the total liability increases. Extended time frames range from 10 to 30 years. Excellent offers are available under consolidation which enables students to manage their loan liabilities and continue their studies.
by Archana Sarat
The cost of education is always on the rise. To enable students to cope up with this upward trend and continue with there higher education they are offered various study loan schemes. More and more students are availing these study loans to pursue with their goals. Government Student Loan Consolidation scheme offers various options to reduce the monetary responsibility of students under certain circumstances. Students who availed loans under the Federal Students Loan scheme are eligible for this Consolidation. They are required to meet certain conditions for availing this facility. The number of loans availed under the Federal student loan scheme should be more than one. Where there is only one loan consolidation does not arise. The student should have either paid the monthly installments at least for 3months or is in the 6 months grace period after post graduation. Loans can be consolidated whether subsidized or not. The consolidation will be done separately for subsidized and unsubsidized loans enabling the lenders to have an individual track of them as required under law. While the consolidation processes are different the students are required to make a single payment. Consolidation does not amount to waiver. Loans are consolidated into one, technically are the loans are repaid and a new loan is created. A valid repayment process exists. Monthly liability depends mainly on the repayment period available, loan amount and the rate of interest prevailing. Advantages of consolidation are that students are given extended time period for paying back their loans consequentially reducing their monthly commitment, it is more beneficial as it reduces the complicated procedure of tracking due dates of various loans. It is to be understood that though the monthly commitment reduces the total liability increases. Extended time frames range from 10 to 30 years. Excellent offers are available under consolidation which enables students to manage their loan liabilities and continue their studies.
Drowning in Educational Loan Debt: Will Loan Consolidation Save You?
Drowning in Educational Loan Debt: Will Loan Consolidation Save You?
by Kelli Smith
It's the first of the month and you've received a fistful of bills for the many different student loans that helped pay for your education: Perkins, subsidized and unsubsidized FFEL or Direct Stafford, and PLUS. Your salary hasn't reached the six figure income you had hoped for yet. Each month you watch as your hard earned cash evaporates in educational loan payments while you live in a cramped studio apartment and drive a car older than you are.
You've heard about loan consolidation and the idea of making a smaller payment to one lender sounds like a dream compared to your current nightmare of feeding a seemingly endless stream of money to a number of different lenders. No contest--where do you sign up?
Rein yourself in for a moment. Consolidation may be the perfect solution to your financial woes and then again it may not be. So before you jump on the consolidation bandwagon, here are a few things you might want to consider.
Are Lenders Axing Consolidation Loans? In an effort to remedy some inequities in the federal student aid programs, Congress recently enacted the College Cost Reduction and Access Act of 2007, which among other provisions, cuts lender subsidies that have historically been in place to encourage lenders to participate in the federal education loan programs. This legislation, in concert with the recent subprime mortgage credit crisis, has lenders taking a closer look at whether education loans continue to be profitable for them.
Higher education leaders anticipate that lenders may cut back on the Stafford and PLUS loan incentives and discounts previously offered to attract borrowers--and eliminate them altogether for consolidation loans. Consolidation loans, with the tightest profit margin of all education loans, may even be on the chopping block for some lenders while others may increase the minimum balance that qualifies a borrower for a consolidation loan.
Even if lenders back out of the consolidation loan business, consolidation is still available through the federal Direct Consolidation Loan program, but the government doesn't offer the incentives and discounts that lenders have long been using to attract borrowers.
Are Interest Rates Coming Down? Stafford Loan and PLUS variable interest rates, which are based on a formula that includes the interest rate of the most recent 91-day T bill, change every July 1; rates are expected to drop significantly on July 1, 2008. This decrease should make the educational loan variable interest rates very attractive. Because the interest rate for a consolidation loan is calculated using a weighted average of all interest rates for all of the loans you would include in consolidation, you may want to wait until after July 1 to make a more informed decision.
Consolidation: Thumbs Up or Down? To consolidate or not to consolidate: that is the question. But there's no easy answer.
Consolidation may be a good idea if:
* You have a variable interest rate and would rather have a fixed rate. This may be a good idea but you might want to wait and consider it only if interest rates start going back up. And, what happens if variable interest rates stay down or drop below your fixed rate?
* You have a variety of loans and lenders and would like to have only one lender. One problem--you may have to 'pay' for the convenience by accepting a higher interest rate on some of your loans.
* You need more flexible repayment options. Repayment options available through consolidation are: Standard - fixed monthly payments. Graduated - start out with low payments and increase every 2 years. Extended - for amounts greater than $30,000, either a fixed or graduated option. Income contingent - based on annual income and total loan debt, with a payment adjustment every year as income changes. The FFEL program offers income sensitive repayment, which bases monthly payments on a percentage of income.
Although the Stafford Loan programs offer flexible repayment options, the Perkins Loan program currently does not. Note: An income-based repayment option will become available for FFEL and Direct Stafford, Perkins, Grad PLUS, and Federal Consolidation (less undergrad PLUS) loan borrowers on July 1, 2009.
* You absolutely need to ease up on your monthly payments. Beware of this option. A lower payment generally means a longer repayment period and paying more interest over time.
Consolidation may not be a good idea if:
* Any of the loans you plan to include have cancellation or forgiveness options that may be lost if you consolidate. The Perkins Loan Program, for example, has a cancellation option if you teach in certain public school service professions or subject areas or in certain designated low income schools. Portions of a Stafford Loan may be eligible for cancellation if you teach full time for five consecutive years in a low income school. (Under certain circumstances, this option may also be available for consolidation loans.)
* Your current lender offers rebates (such as an annual reduction in your interest rate) for successive on-time payments. You would lose this option if you consolidate and, as previously mentioned, lenders may be phasing out incentives for consolidation loans.
* You consolidate during your grace period(s). The remainder of your grace period is lost.
* You've already substantially reduced the amount you owe. Because consolidation generally extends your repayment period, often with an increased interest rate, you may ultimately end up paying more.
Research and Conquer Unfortunately the answer to whether or not consolidation is right for you is..."it depends." To find out, collect information about what federal loans you have (Perkins, FFEL, PLUS, and Direct Loan programs) by accessing the National Student Loan Data System (nslds.ed.gov). Collect information about any private educational loans you have directly from your lender(s). Take the loan information and find an online consolidation loan calculator to help you determine how your loan repayments may change through consolidation.
Then ask yourself the following questions: * Am I willing to pay higher interest or extend my repayment period and pay more interest over time?
* Am I going to lose any loan cancellation options or incentives for which I'm currently eligible?
* Can I afford my current payments without consolidating?
* Would consolidation actually make my payments significantly more affordable?
* Does the 'lower payment now' benefit offset the 'pay more for longer' downside of consolidation?
You can see that the decision whether or not to consolidate is not black and white. It is an individual decision--it may work for some and not for others. Because there are long term implications to consolidation, do your research and weigh the pros and cons carefully. When all of the evidence is in, you should be able to decide whether or not a consolidation loan is the answer for you.
by Kelli Smith
It's the first of the month and you've received a fistful of bills for the many different student loans that helped pay for your education: Perkins, subsidized and unsubsidized FFEL or Direct Stafford, and PLUS. Your salary hasn't reached the six figure income you had hoped for yet. Each month you watch as your hard earned cash evaporates in educational loan payments while you live in a cramped studio apartment and drive a car older than you are.
You've heard about loan consolidation and the idea of making a smaller payment to one lender sounds like a dream compared to your current nightmare of feeding a seemingly endless stream of money to a number of different lenders. No contest--where do you sign up?
Rein yourself in for a moment. Consolidation may be the perfect solution to your financial woes and then again it may not be. So before you jump on the consolidation bandwagon, here are a few things you might want to consider.
Are Lenders Axing Consolidation Loans? In an effort to remedy some inequities in the federal student aid programs, Congress recently enacted the College Cost Reduction and Access Act of 2007, which among other provisions, cuts lender subsidies that have historically been in place to encourage lenders to participate in the federal education loan programs. This legislation, in concert with the recent subprime mortgage credit crisis, has lenders taking a closer look at whether education loans continue to be profitable for them.
Higher education leaders anticipate that lenders may cut back on the Stafford and PLUS loan incentives and discounts previously offered to attract borrowers--and eliminate them altogether for consolidation loans. Consolidation loans, with the tightest profit margin of all education loans, may even be on the chopping block for some lenders while others may increase the minimum balance that qualifies a borrower for a consolidation loan.
Even if lenders back out of the consolidation loan business, consolidation is still available through the federal Direct Consolidation Loan program, but the government doesn't offer the incentives and discounts that lenders have long been using to attract borrowers.
Are Interest Rates Coming Down? Stafford Loan and PLUS variable interest rates, which are based on a formula that includes the interest rate of the most recent 91-day T bill, change every July 1; rates are expected to drop significantly on July 1, 2008. This decrease should make the educational loan variable interest rates very attractive. Because the interest rate for a consolidation loan is calculated using a weighted average of all interest rates for all of the loans you would include in consolidation, you may want to wait until after July 1 to make a more informed decision.
Consolidation: Thumbs Up or Down? To consolidate or not to consolidate: that is the question. But there's no easy answer.
Consolidation may be a good idea if:
* You have a variable interest rate and would rather have a fixed rate. This may be a good idea but you might want to wait and consider it only if interest rates start going back up. And, what happens if variable interest rates stay down or drop below your fixed rate?
* You have a variety of loans and lenders and would like to have only one lender. One problem--you may have to 'pay' for the convenience by accepting a higher interest rate on some of your loans.
* You need more flexible repayment options. Repayment options available through consolidation are: Standard - fixed monthly payments. Graduated - start out with low payments and increase every 2 years. Extended - for amounts greater than $30,000, either a fixed or graduated option. Income contingent - based on annual income and total loan debt, with a payment adjustment every year as income changes. The FFEL program offers income sensitive repayment, which bases monthly payments on a percentage of income.
Although the Stafford Loan programs offer flexible repayment options, the Perkins Loan program currently does not. Note: An income-based repayment option will become available for FFEL and Direct Stafford, Perkins, Grad PLUS, and Federal Consolidation (less undergrad PLUS) loan borrowers on July 1, 2009.
* You absolutely need to ease up on your monthly payments. Beware of this option. A lower payment generally means a longer repayment period and paying more interest over time.
Consolidation may not be a good idea if:
* Any of the loans you plan to include have cancellation or forgiveness options that may be lost if you consolidate. The Perkins Loan Program, for example, has a cancellation option if you teach in certain public school service professions or subject areas or in certain designated low income schools. Portions of a Stafford Loan may be eligible for cancellation if you teach full time for five consecutive years in a low income school. (Under certain circumstances, this option may also be available for consolidation loans.)
* Your current lender offers rebates (such as an annual reduction in your interest rate) for successive on-time payments. You would lose this option if you consolidate and, as previously mentioned, lenders may be phasing out incentives for consolidation loans.
* You consolidate during your grace period(s). The remainder of your grace period is lost.
* You've already substantially reduced the amount you owe. Because consolidation generally extends your repayment period, often with an increased interest rate, you may ultimately end up paying more.
Research and Conquer Unfortunately the answer to whether or not consolidation is right for you is..."it depends." To find out, collect information about what federal loans you have (Perkins, FFEL, PLUS, and Direct Loan programs) by accessing the National Student Loan Data System (nslds.ed.gov). Collect information about any private educational loans you have directly from your lender(s). Take the loan information and find an online consolidation loan calculator to help you determine how your loan repayments may change through consolidation.
Then ask yourself the following questions: * Am I willing to pay higher interest or extend my repayment period and pay more interest over time?
* Am I going to lose any loan cancellation options or incentives for which I'm currently eligible?
* Can I afford my current payments without consolidating?
* Would consolidation actually make my payments significantly more affordable?
* Does the 'lower payment now' benefit offset the 'pay more for longer' downside of consolidation?
You can see that the decision whether or not to consolidate is not black and white. It is an individual decision--it may work for some and not for others. Because there are long term implications to consolidation, do your research and weigh the pros and cons carefully. When all of the evidence is in, you should be able to decide whether or not a consolidation loan is the answer for you.
วันพุธที่ 18 มิถุนายน พ.ศ. 2551
Easy private student loans no credit check
Easy private student loans no credit check
Education is not just another expense, but requires a considerable amount for financial resources to support this endeavor. But the long list of expenses including tuition fees, stationary, and accommodation amid others can make this quest a difficult one. The pile of debt occurring from these expenses can be a factor affecting your future financial options. In such a scenario, Easy private student loans no credit check are the right option of cash. you are to search over internet and several private lenders are an effort to help students with these expenses have designed loan deals that could be beneficial for them. Amongst the deals presented by these lenders some also cater to the specific needs of bad creditors including Easy private student loans no credit check. Easy private student loans no credit check are going to cost more than any another type of student loan because they are risky for the lender. Therefore, it is wise for people to check around for other options first. However, if someone is set on getting Easy private student loans no credit check then there are important things that they need to pay attention to, such as how much they are going to be charging in interest and fees. If a person cannot make the monthly payments, then this is not the right type of financing for them. Because there are many different ways to finance education, people should look into all their options before diving into college. Before even considering borrowing money, much less a Easy private student loans no credit check, potential students can consider scholarship options. If borrowing money is necessary to their education, they should first explore options for borrowing that allow for deferred payment options and tax-deductible interest. Easy private student loans no credit check require immediate payback, resulting in monthly payments while the person still is in college. On a limited income, these monthly payments may be difficult to pay for. In addition to larger monthly payments, the borrower also will need to contend with higher interest rates. You have many other options too use Easy private student loans no credit check.
Education is not just another expense, but requires a considerable amount for financial resources to support this endeavor. But the long list of expenses including tuition fees, stationary, and accommodation amid others can make this quest a difficult one. The pile of debt occurring from these expenses can be a factor affecting your future financial options. In such a scenario, Easy private student loans no credit check are the right option of cash. you are to search over internet and several private lenders are an effort to help students with these expenses have designed loan deals that could be beneficial for them. Amongst the deals presented by these lenders some also cater to the specific needs of bad creditors including Easy private student loans no credit check. Easy private student loans no credit check are going to cost more than any another type of student loan because they are risky for the lender. Therefore, it is wise for people to check around for other options first. However, if someone is set on getting Easy private student loans no credit check then there are important things that they need to pay attention to, such as how much they are going to be charging in interest and fees. If a person cannot make the monthly payments, then this is not the right type of financing for them. Because there are many different ways to finance education, people should look into all their options before diving into college. Before even considering borrowing money, much less a Easy private student loans no credit check, potential students can consider scholarship options. If borrowing money is necessary to their education, they should first explore options for borrowing that allow for deferred payment options and tax-deductible interest. Easy private student loans no credit check require immediate payback, resulting in monthly payments while the person still is in college. On a limited income, these monthly payments may be difficult to pay for. In addition to larger monthly payments, the borrower also will need to contend with higher interest rates. You have many other options too use Easy private student loans no credit check.
วันจันทร์ที่ 16 มิถุนายน พ.ศ. 2551
Choose a shorter debt consolidation mortgage loan
Choose a shorter debt consolidation mortgage loan
by Yanie Sulzerino
Choose a shorter debt consolidation mortgage loan
When in financial difficulties, one of the many loans one turns to for financial help is a debt consolidation mortgage loan. With this loan, it is possible to reduce interest rates and monthly payments to make it easier for you to pay off your debt. However though the debt consolidation mortgage loan is advantageous, it has its share of disadvantages too.
The main advantage with the debt consolidation mortgage loan is that it has a lower interest rate than credit card and unsecured loan rates. With the debt consolidation mortgage loan, you pay all your previous debts and end up with a single loan and a single monthly installment.
The interest of debt consolidation mortgage loan is tax deductible
The interest rate of the debt consolidation mortgage loan is usually lower than the other loan and credit card rates. So you save money by having to pay lower monthly payments, and find it possible to pay off your debt rapidly. Moreover, a debt consolidation mortgage loan will be for a longer term, which in turn leads to lower monthly installments.
Another advantage of the interest of the debt consolidation mortgage loan is that it is tax deductible while the credit card interest isn't. However student loan interest is tax deductible; so it is better not to consolidate it for a higher interest rate loan.
The disadvantage of a debt consolidation mortgage loan is that though your monthly installments are lower, you have to pay more in fees and interest. Origination fees for refinancing a debt consolidation mortgage loan can add to thousands while other home equity loans cost hundreds or nothing for opening.
Don't delay in making monthly payments
Delay in making your payments for the debt consolidation mortgage loan may lead to adding up of interest payments. This means that though you may have a longer term to repay the loan amount, in the long run, the monthly installments you pay for the term lead to an amount that is much higher than the monthly installments would have been for a loan of a higher interest rate.
If you decide to use a debt consolidation mortgage loan to repay all older loans and credit card balances, it is important that you shop around for loans with low rates and fees. This is to ensure that you save the most money through the loan. Basically, it is better to choose a debt consolidation mortgage loan of a shorter term from companies like www.vuemortgageloan.com to avoid paying large interest payments.
by Yanie Sulzerino
Choose a shorter debt consolidation mortgage loan
When in financial difficulties, one of the many loans one turns to for financial help is a debt consolidation mortgage loan. With this loan, it is possible to reduce interest rates and monthly payments to make it easier for you to pay off your debt. However though the debt consolidation mortgage loan is advantageous, it has its share of disadvantages too.
The main advantage with the debt consolidation mortgage loan is that it has a lower interest rate than credit card and unsecured loan rates. With the debt consolidation mortgage loan, you pay all your previous debts and end up with a single loan and a single monthly installment.
The interest of debt consolidation mortgage loan is tax deductible
The interest rate of the debt consolidation mortgage loan is usually lower than the other loan and credit card rates. So you save money by having to pay lower monthly payments, and find it possible to pay off your debt rapidly. Moreover, a debt consolidation mortgage loan will be for a longer term, which in turn leads to lower monthly installments.
Another advantage of the interest of the debt consolidation mortgage loan is that it is tax deductible while the credit card interest isn't. However student loan interest is tax deductible; so it is better not to consolidate it for a higher interest rate loan.
The disadvantage of a debt consolidation mortgage loan is that though your monthly installments are lower, you have to pay more in fees and interest. Origination fees for refinancing a debt consolidation mortgage loan can add to thousands while other home equity loans cost hundreds or nothing for opening.
Don't delay in making monthly payments
Delay in making your payments for the debt consolidation mortgage loan may lead to adding up of interest payments. This means that though you may have a longer term to repay the loan amount, in the long run, the monthly installments you pay for the term lead to an amount that is much higher than the monthly installments would have been for a loan of a higher interest rate.
If you decide to use a debt consolidation mortgage loan to repay all older loans and credit card balances, it is important that you shop around for loans with low rates and fees. This is to ensure that you save the most money through the loan. Basically, it is better to choose a debt consolidation mortgage loan of a shorter term from companies like www.vuemortgageloan.com to avoid paying large interest payments.
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