By financen | April 5, 2011 - 4:32 pm - Posted in Debt consolidation

“If you really need a loan, it’s probably because you’ve already missed a few payments and your credit history has gone for toss. “The Hard-Money Loan” However the important thing about debt-consolidation loans is that they are easy to get, provided you have not messed with your credit score. This advice is given by many financial advisory.

At times you would find that your monthly payment is lower then other loans but you would end up paying more then the regular loan. The debt-consolidator may give an offer of easy-does-it loan but if you analyze this very carefully then you would see that the consolidator is charging you high interest rates than you are paying now as high as 22% or even 23%.

Debt Consolidators Who Promise to Take Care of Everything:

This is one dream that we would like to dream about especially when you miss your payments to make to the lenders. This Nice Big Debt Consolidation Company comes along and swears they’ll make your life so much easier. They’ll negotiate lower interest rates, reduce your monthly payments.

You must be wondering how the debt consolidators companies charge you. These companies build in a fee as part of the monthly payment you make to them. However the fact is totally different what they do is only about 10% of the payment is made to the creditor, some debit directly from your checking account and get the benefit of the remaining amount lets say about 12% to 14% share is taken by the debt-consolidator.

Is it worth paying someone else to do what you can do on your own? That is funny, because when I plugged my debt into the MSN Money Debt Consolidator — a less biased source, since they are not getting no fee from me, they said I could pay off my debt in 41 months, providing I make slightly higher minimum payments to each card: a total of just $60 extra per card.

I was just thinking to myself, is it worth paying someone else to do what you can do on your own? Simply what you have to do is negotiate lower interest rates and stretch out your repayment schedule and pay off the highest interest debt first.

The Balance Transfer Trap:

If you think you can swing from the balance-transfer vines for a few months, just make sure you formally close all your accounts yourself, and then notify the credit-card company to mark the account “closed at customer’s request.” “Otherwise, on your credit report, it will look like the creditor closed your account,” says one of the biggest credit reporting agencies. Thus making you look like an even worse risk, even when you’re doing your best not to be.

This entry was posted on Tuesday, April 5th, 2011 at 4:32 pm and is filed under Debt consolidation. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.


  1. June 7, 2011 @ 11:59 pm

    Debt Consolidation companies have a very bad track record of over promising and under delivering. Most debtors would be far better off filing a chapter 13 bankruptcy which provides court protetion from creditors without the outragious fees. Many people that file bankruptcy have tried some form of Debt Consolidation without sucess.

    Posted by 1clickbankruptcy
  2. August 30, 2011 @ 11:11 am

    I have gone through this post and understand lots of things about debt consolidation services. Many people are applying for these services to get freedom from debts as soon as possible but taking debt consolidation is not easy as many lenders taking very high interest on debt consolidation loan.

    Posted by consolidation
  3. September 5, 2011 @ 11:52 am

    Almost all the customers are availing the service of debt consolidation; it is helpful quiet helpful for students. It helps them to consolidate their educational loans into single finance and help to concentrate in studies rather than on repayment of loans. People looking for more information on consolidation of loans, can visit this site.

    Posted by consolidation of loans