Ultimate Debt Guides & Get Out Of Debt Solutions – What Are Your Options?
Are you or someone someone you know going through a debt situation? When this happens, it's hard to know the truth from the hype. The bottom line is that if you're in this situation, you simply want clear get out of debt guide that will improve your condition and save you money and time. The big question is, do these ultimate debt guides really work? Do they offer you any true benefits if you're in debt or do they push you even further into debt? Let's use a fictional character, 'Joe' to learn the pros and cons of debt guides. Keep reading to unforgettable the truth.
Meet Joe … He's In Debt
'Joe' is a middle-class American currently drowning in debt. He has around three or four credit cards that have been 'maxed out'. Joe is currently paying off a consumer loan, possibly a car loan as well and he also has a payment
on a house as well. Sounds familiar? Joe is only paying his minimum payment and it's causing him distress and
is not moving him towards being debt free.
What are Joe's options?
Many get-out-of-debt specialists believe that that a debt consolidation loan is by far
Joe's the best option. Debt consolidation loans are used to pay off many other loans or credit debts.
Joe has seen the ads on television of happy, starry-eyed folks that decided to take out a consolidation loan to get out of debt. In his debt situation, it seems appealing because the people on TV (seem to have had)
all their financial problems solved and have been able to get out of debt 'with a smile!'. So Joe starts to consider a debt consolation loan as his ultimate get out of debt guide and path … but there's a niggling question at the back of his mind "Are debt consolidation loans really a good idea?".
To help Joe and help you we'll explore the good and the bad of this particular kind of get our debt solution.
CONSOLIDATION LOANS UNCOVERED PART 1
Consolidation Loan – The Pros Of Using This as The Ultimate Get Out Of Debt Guide
Smaller Interest Rates: because the home equity loan is the most common type of debt consolidation loan
(also known as a second mortgage), interest will be lower than most consumer debt interest rates. Your mortgage is a secured debt. This means that your lenders have something they can take from you if you do not make your payment. Credit cards for instance unsecured loans. The credit card company has nothing except your history and your word.
It's because of this, that unsecured loans have a much higher rate of interest.
Lower Monthly Payments: Because the interest (the rate) is lower and because you have
a single payment as opposed to many, the amount you'll have to fork out each month is typically
One Payment As Opposed To Many Payments: How many creditors are you paying each month? The average American living in the United Sates pays 11 (eleven) different creditors every single month. Making just one single payment is a lot easier than trying to figure out who should get paid, when and what amount. This obviously makes managing your finances that bit easier.
Tax Breaks: here's some hard truth for you. If you pay interest on your credit card, you're pouring money straight down the drain. All interest
you pay to a credit card company is wasted money. Any mortgage related interest on the other hand,
you can use as a tax write-off.
Only one credit: If you want to pay only one credit, a consolidated loan is your best bet. With a consolidation loan, you've only got one credit card to work with. If there are any issues or problems, you'll only have to make a single phone call to one point of contact instead of having to make many calls too many.
Bottom line is that consolidation loan is something to consider if you're looking for the ultimate debt guide or a simple easy-to-use get out of debt guide. You will have a simple way to control your finances.
If you're like Joe, this option will attractive. It's appealing is not it? BUT, wait a minute. Before you go out and get a loan, consider the following facts about the other side of the coin. The cons of using a consolidated loan as the ultimate get out of debt guide.