Debt Problems

Need to solve your debt problems?  Need to consolidate student loans? Debt consolidation entails taking out one loan to pay off many others. This is often done to
secure a lower interest rate,secure a fixed interest rate or for the convenience of servicing only one loan.


The benefits of using a Consumer Credit Counselor for help with debt problems are the following:


  • Creditor and collection calls will generally stop.
  • In many cases, interest rates and minimum payments are reduced.
  • You make only one payment per month and these funds are dispersed to all your creditors.
  • If your account was past-due, most creditors will reflect you account as current after 1-3 consecutive payments.
  • Late and over-the-limit fees are usually eliminated.

Debt consolidation can simply be from a number of unsecured loans into another unsecured loan, [Pullout:

dm03.jpg
] but more often it involves a secured loan against an asset that serves as collateral, which is most commonly a house (in this case a mortgage is secured against the house.)


The collateralization of the loan allows a lower interest rate than without it, because by collateralizing, the asset owner agrees to allow the forced sale (foreclosure) of the asset to pay back the loan.

The risk to the lender is reduced so the interest rate offered is lower.    Visit our debt solution section to find more resources on dealing with debt problems.





         Copyright © 2008 CORE MEDIA LLC, 11347 Eliot Court, Denver, CO 80234- (303) 458 0486, All Rights Reserved 


CORE Google