One of the advantages of a debt consolidation loan is that you'll be able (within limits, of course) to arrange monthly payments you can afford. You may decide to repay the loan with larger monthly payments: although this will take a bigger chunk out ... FAQs: Commonly Asked Debt Consolidation Questions
Debt consolidation loans allow consumers to pay off credit card bills with the help of a bank loan. Consumers should be mindful not to go back into debt after paying off credit cards. Find out more about debt consolidation withinformation from a registered financial consultant in this free video on money management. Expert: Patrick Munro Contact: www.northstarnavigator.com Bio: Patrick Munro is a registered financial consultant (RFC) with outstanding sales volume of progressive financial products and solutions to the senior and boomer marketplace. Filmmaker: Reel Media LLC
http://leafgardenpress.com/ Money Management : How Do Debt Consolidation Loans Work?
With today's economic downturn hitting the country, banks are not lending as freely as they once were. People are getting laid off left and right and debts are piling up for a great many people. The strain of keeping track of all of these debts and keeping up with the payments is causing the lending industry to give out more debt consolidation loans.
Debt consolidations loans allow the borrower to take on one loan and pay off their multiple loans and credit cards. This allows the person to only make one payment each month and usually it is a lower payment than they would normally be making in total. This is because the terms are usually generous and the interest rates are generally lower than the items they are replacing.
Debt consolidation loans are obtained much like any other loan. The bank will look at your credit history and your debt to income ratio and try to figure out if you have a good repayment history and if you currently have the ability to pay back the loan.
Another thing that might be required by the bank is collateral to secure the debt.Collateral is a key component here for most debt consolidation loans. The reason many require this as part of the deal for the loan is that by securing the loan, the bank reduces their risk on the note. If the bank knows that you are committed to the loan in proportion to them by adding some collateral, the bank will be more likely to extend credit to you.
Suggest Explore Debt Consolidation Loans ArticlesQuestion by emac4lyf: Can a Bank give me a loan to consolidate my debt? Well I have alot of debts estimating to $ 3,000.. If I go to a bank and ask for a loan would they give me one.. I mean the main reason of me getting a loan is to pay off my debts and just make it 1 bill.. What do you guys suggest? Also suggest me some good banks who offer loans for my case. Am I doing the right thing? Because all I wanna do is to organize my debt to 1 payment. PLS HELP!! Best answer for Can a Bank give me a loan to consolidate my debt?:
Answer by KevinAndMarya T
yes
Answer by saint b
Hi, I think debt consolidation loan is what you are looking for. These articles might help you: Unsecured Debt Consolidation Loan For All http://www.askaquery.com/question/Unsecured-Debt-Consolidation-Loan-For-All.html Regain your financial status with Debt Consolidation Loans http://www.askaquery.com/question/Regain-your-financial-status-with-Debt-Consolidation-Loans.html Student Loan Consolidation http://www.askaquery.com/question/Student-Loan-Consolidation.html Debt Consolidation Loan for Bad Credit http://www.askaquery.com/question/Debt-Consolidation-Loan-for-Bad-Credit.html
Answer by sjoschko
Can they, of course. Will they, depends. If you're willing to put up collateral, then you'll get a better rate a better chance of a loan. Most likely, they'll want you to take out a HELOC - Home Equity Line of Credit. Of course, if you don't own a home, it'll be tough since you can't get a HELOC. Trying to get an unsecured loan (meaning you don't put up any collateral) is harder and you get a worse rate since the bank sees it as more risky. After all, a secured loan means they have something they can take and sell to get their money back. An unsecured, well, they don't have that option. Your best option might be to try out one of these new person to person lending sites. Currently, the only one operating in the US is prosper.com. It's like an eBay for loans, you put up how much you need (up to $ 25,000), what interest rate you're willing to pay, and write your sob story, and people bid on your loan. If there is lots of interest, your rate will be bid down so you'll end up paying less.
Answer by Kevin M
On principle, I oppose debt consolidation loans. Yes it makes it easier to have one payment, however they want to make money too, and it will cost you something. Too often these debt consolidation companies will rip you off in high fees or just plain rip you off by taking your money and not paying your creditors. $ 3,000 is not a lot of money. Figure out how much you can pay towards debt every month. Then pay the minimums on everything except the bill that has the highest interest rate. Pay as much as you can to that one every month. Also, you'll want to contact the creditors if they are credit card companies, and tell them you've gotten these other offers for lower interest rates, and you want them to match it. If you aren't actually getting these offers in the mail, go to bankrate.com or cardweb.com and check it out. If the first person you speak to can't help, ask them to kick you up to their supervisor. If that doesn't work, call again another time. Unless you credit sucks you should be able to get a better interest rate, thereby making it easier to pay back. In no time you'll eliminate one debt after another. Keep paying the same amount every month and apply even more to the next highest interest rate debt. Soon, you'll be debt free. Then do yourself a favor and keep saving that same amount you were paying on debt every month. Have it automatically deposited into a savings account through your payroll dept or by telling your bank to automatically deduct it on your paydays. The key is making it automatic!
Answer by Gillian G
I would go to the bank as my first preference. Explain everything, tell them exactly how much you owe and see if they will help. I did this and I was surprised how easy it was! $ 3,000 is not a lot of money so I think you have a good chance. The worst that can happen is that they say no. If you do need to find a debt consolidation loan, this website has a lot of information about the pros and cons and also has some useful links. What you must also do is cut up all the credit cards that got you into debt in the first place. Live within your means, aim to pay back the loan a bit faster than you need to and you'll be surprised how quickly you'll start to feel back in control. Good luck!
