by: Jennifer Tarzian
If you are like me, you receive multiple 0% APR credit card offers on a daily basis. Up until about a year ago, I would just throw them away. Then I wised up and saw an opportunity. Not only could I consolidate my current credit cards, I could eliminate unnecessary interest expenses.
I first transferred all outstanding balances from my high-interest credit cards (which were all of them) to my new 0% card. Now I was only making one payment a month instead of three. I then determined the average payment I would have to make each month to have it paid off at the end of the promotional period. That’s the payment I made each month and it saved me a great deal of money in interest charges. At the end of the promotional period, my debt was paid off and I hadn’t spent a dime in interest! The other option would have been to transfer the balance once again to a NEW 0% card at the end of the promotional period, further lowering the initial monthly payment.
I do have a few suggestions before jumping in and signing up for any 0% card. Compare all that are out there! Read the terms carefully. Is there a balance transfer fee, and if so, how much is it? Does the 0% apply to balance transfers only or to purchases as well? How long is the 0% promotional period? Know the terms well or this 0% card could cost you more than that 18% card you’re already carrying in your wallet. There are a great deal of cards out there – pick the one that is the most beneficial to your needs. Best of luck!
About The Author
Jennifer Tarzian holds a Bachelor of Science degree in Psychology. Her experience includes sales, service, and managing a small corporation. She is proud to be a stay-at-home mom and enjoys spending time with her family and friends.
http://www.youngparentsmagazine.com
http://creditcards.youngparentsmagazine.com
Friday, January 19, 2007
Friday, January 5, 2007
Refinancing to Consolidate Debts
by: John Mussi
Sometimes it can seem as though everything that can go wrong with life is going wrong… debts keep piling up, old loan payments seem to be more than you can handle, and you're just wishing that there was some way that you could take care of your problems without having to try to live beyond your means.
Luckily, there may be a way that you can do just that… get rid of some or all of the debts that you've accumulated, get a new interest rate on your loan, and reduce those piles of bills that you have laying around into a single monthly payment that's much more manageable. By consolidating some or all of your debts as part of a loan refinance, you can lock in a better interest rate while borrowing enough money to get rid of some of the other debts hanging over your head.
The information provided below should provide for you more information on refinancing and debt consolidation so that you can decide whether or not this solution is right for you.
Defining Refinance Loans
Refinance loans are new loans that are taken out in order to pay the outstanding balance on a previous loan and lock in new loan terms and rates. Because the new loan completely takes the place of the previous one, many people believe that refinance loans are actually just a renegotiation of the original loan and must therefore be taken out from the original lender, but that's not actually true. A refinance loan can be obtained from any lender that offers the type of loan that you're attempting to refinance and who is willing to refinance your original loan.
Choosing the Right Time to Refinance
Before refinancing a loan, you should take the time to make sure that the loan market is right for a refinance. After all, you don't want to end up paying more for your refinance loan than you did for your original loan… make sure that interest rates are lower than those that you're currently paying and that the loan repayment terms are as good if not better than the ones for your original loan. You should also shop around and try to find the lowest monthly payment that you can get for your loan especially if you plan on borrowing extra money with the refinance loan so that you can consolidate your other debts.
Debt Consolidation
In order to consolidate your other debts, you're going to have to borrow an amount that will pay some or all of your outstanding debt. If you are only able to borrow a portion of what you owe, it's generally best to try and pay off the larger and older debts and leave the smaller and newer debts to be taken care of in their own time. Careful debt consolidation can leave a monthly payment that's low enough that you'll be able to make payments on a few additional debts without nearly as much trouble as you were experiencing before the consolidation.
Using a Refinanced Loan to Consolidate Debts
If you're wanting to use a refinance loan to consolidate some of your debts, you're going to have to borrow more than the actual amount remaining on the loan that you're refinancing. This additional amount will be used to pay off those debts that are being consolidated and will affect the monthly payment of your refinanced loan. By doing this, however, you can make your finances and outstanding debts much more manageable and will likely become debt-free much faster.
About The Author
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk website.
Sometimes it can seem as though everything that can go wrong with life is going wrong… debts keep piling up, old loan payments seem to be more than you can handle, and you're just wishing that there was some way that you could take care of your problems without having to try to live beyond your means.
Luckily, there may be a way that you can do just that… get rid of some or all of the debts that you've accumulated, get a new interest rate on your loan, and reduce those piles of bills that you have laying around into a single monthly payment that's much more manageable. By consolidating some or all of your debts as part of a loan refinance, you can lock in a better interest rate while borrowing enough money to get rid of some of the other debts hanging over your head.
The information provided below should provide for you more information on refinancing and debt consolidation so that you can decide whether or not this solution is right for you.
Defining Refinance Loans
Refinance loans are new loans that are taken out in order to pay the outstanding balance on a previous loan and lock in new loan terms and rates. Because the new loan completely takes the place of the previous one, many people believe that refinance loans are actually just a renegotiation of the original loan and must therefore be taken out from the original lender, but that's not actually true. A refinance loan can be obtained from any lender that offers the type of loan that you're attempting to refinance and who is willing to refinance your original loan.
Choosing the Right Time to Refinance
Before refinancing a loan, you should take the time to make sure that the loan market is right for a refinance. After all, you don't want to end up paying more for your refinance loan than you did for your original loan… make sure that interest rates are lower than those that you're currently paying and that the loan repayment terms are as good if not better than the ones for your original loan. You should also shop around and try to find the lowest monthly payment that you can get for your loan especially if you plan on borrowing extra money with the refinance loan so that you can consolidate your other debts.
Debt Consolidation
In order to consolidate your other debts, you're going to have to borrow an amount that will pay some or all of your outstanding debt. If you are only able to borrow a portion of what you owe, it's generally best to try and pay off the larger and older debts and leave the smaller and newer debts to be taken care of in their own time. Careful debt consolidation can leave a monthly payment that's low enough that you'll be able to make payments on a few additional debts without nearly as much trouble as you were experiencing before the consolidation.
Using a Refinanced Loan to Consolidate Debts
If you're wanting to use a refinance loan to consolidate some of your debts, you're going to have to borrow more than the actual amount remaining on the loan that you're refinancing. This additional amount will be used to pay off those debts that are being consolidated and will affect the monthly payment of your refinanced loan. By doing this, however, you can make your finances and outstanding debts much more manageable and will likely become debt-free much faster.
About The Author
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk website.
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