"The awareness of the ambiguity of one's highest achievements (as well as one's deepest failures) is a definite symptom of maturity."Paul Tillich
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Bankruptcy Tips And Helpful Alternatives
Copyright 2005 Dean Shainin Before you file bankruptcy, it is a good idea to look into other alternatives if at all possible. New bankruptcy laws make it more difficult to file than it used to be. Why Has Filing For Bankruptcy Doubled? From the period ...
Mortgage Refinancing
Mortgage is a long term loan and the mortgage monthly payments form a major monthly expense. A lower mortgage rate means lower monthly mortgage payments. This is one reason why people hunt for low interest rates on a mortgage. As we know, there are two ...
Retirement is never urgent until...
If you're like many people, your retirement savings have not been growing consistently over the years. We're not referring to the wild fluctuations in the stock market, but rather the fluctuations in our short-term needs. Every once in a while, it just ...
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Secured loans make your creditors feel more secure about loaning you money. When someone takes out a secured loan, that simply means there is collateral to back up the money they borrowed. This could be a car, or more commonly, a house. There are pros and cons to getting a secured loan as opposed to a standard loan for debt consolidation.
Home Equity Line of Credit - Perhaps one of the most common secured loans is the home equity line of credit. This loan amount is based on how much equity you have in your home. Once you take out this type of secured loan, your house becomes collateral. The most positive aspect of a secured home equity loan is that the money you borrow is tax deductible. For instance, if you have $5,000 in credit card debt, you can roll that over into a home equity line of credit. The credit card payments are not tax deductible, but the home equity loan is. In contrast, standard debt consolidation loans are not tax deductible.
Interest Rate Advantages - Another advantage of using a secured loan for debt consolidation is the interest rate. For many people, credit cards are the source of their debt problems. Credit cards have enormous interest rates. Since secured loans are "secured" by collateral, they tend to have significantly lower interest rates.
After discussing the pros, it is important to understand the con of using a secured debt consolidation loan. Again, many people use a house or a car to secure these types of loans. If you happen to default on the loan and cannot make payments, your house or car will be in jeopardy. A house is usually the largest asset someone owns. You do not want to put your most valuable asset at risk.
For some people, debt consolidation is the best option for their financial problems. Be sure to carefully weigh the pros and cons before choosing to use a secured loan for your debt consolidation.
About the author:
Carrie Reeder is the owner of www.abcloanguide.com, an informational website about various types of loans. View her recommended Online Debt Consolidation companies.
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EQuicknews |
Bankruptcy vs. Debt ConsolidationEQuicknewsIf they werе smart abоut things, theу cоuld hаve usеd ѕоme оthеr option, likе debt consolidation. So whаt arе the implications of еach of thеѕе things? When it соmеs tо bankruptcy, the implications are quite severe. The bankruptcy will go оn yоur ... |
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How to apply for a debt consolidation loanThink MoneyIf you're thinking about applying for a debt consolidation loan, there are a number of steps you should take to ensure you're making the right decision and that you get a good deal. When you're consolidating debts like credit cards, overdrafts, ... |
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