Debt consolidation Loans - Merge multiple loans into one

In simple terms, debt consolidation means taking a loan to pay off other loans. The concept may sound absurd, but it really helps when your debts get on to your head and you don't know how to manage your finances. If you have different loans running at different interest rates, payable to different lenders, debt consolidation may be a viable solution. January is the month that records maximum number of debt consolidation loans in UK. Availing such a loan may fetch you the benefits cited below.

1. Lower monthly payments
2. Relief from creditors' pressure
3. Pay to multiple debts in one go
4. Help avoid bankruptcy, CCJ and insolvency
5. Helps in tax savings as well
6. Avoid late fees on loans and credit cards
7. New loan on lower APR than that on credit cards

So, if you are tired from the persistent calls from your lenders and want to get rid off the debt pressure, apply for a debt consolidation loans. But one should make it a point that although the monthly payments can often be lower, the total amount repaid is often significantly higher due to the long period of the loan.

Lenders in the UK loan market offer secured as well unsecured debt consolidation loans. Though the unsecured are quite popular and in demand, lenders prefer to give secured loans. Following are the types of debt consolidation loan products available in the market.

Secured debt consolidation loans - Pledge your home as security and avail a secured debt consolidation loan at a low APR. These loans also offer other benefits like flexible repayment options.

Unsecured debt consolidation loans - These loans give you the benefit of consolidating debts without placing any asset as security.

Bad credit debt consolidation loans - Most borrowers who apply for debt consolidation loans suffer from bad credit. So, lenders also offer bad credit debt consolidation loans

The borrowers can choose from any of the debt consolidation loans mentioned above, as per their preference and financial status.
By David Parker
Published: 4/19/2007

The Realities About Bad Credit Debt Consolidation

You have seen those ads on TV. Companies specializing in bad credit debt consolidation. These companies claim that they can help you consolidate your debt in spite of your bad credit, no matter how much debt you have or how far behind you are. Yep, they claim to have the magic answers to your financial problems. After they're done with you, you'll be left with, " just one easy monthly payment!"

There are some companies who legitimately want to help people with bad credit consolidate their debt. These companies usually charge a reasonable up-front fee, avoid making extravagant claims and will offer professional references upon request.

Then there is the "other" type of bad credit consolidation company. These types of companies will prey upon your fears and offer you hope that somewhere out there lies and easy solution to your problems. That bad news is, the latter type of bad credit debt consolidation companies is far more common than the former.

Debt Consolidation Companies: What Exactly Do They Do?

Basically, what a bad credit consolidation company does is that it acts as your mediator. They talk to your creditors and try to lower both your interest rates and monthly payments. Once they have reached an agreement with your creditors, they will let you know what your monthly total will be. Then you will send this monthly amount to the debt consolidation company and they will distribute the money to all your creditors.

Now in theory, that's what they're supposed to do. The companies that are running scams often keep much of that money you sent them and call it "administration fees" or " loan origination fees", even though no loan has been or originated. What this means to you is that your creditors will continue to harass you and report your account as delinquent and unpaid to the credit reporting agencies. The money that you sent to these companies never makes it to the creditors.

Does Legitimate Bad Credit Debt Consolidation Really Exist?

There are legitimate bad credit debt consolidation companies. The legitimate companies will not send you unsolicited e-mails or any kind of mail unsolicited. You also won't find them advertising on late-night television. If your credit score is very poor, chances are you probably won't qualify for unsecured loans throw a bank. However, you may be able to refinance your house or your car to pay off any unsecured debt. Best to talk to your bank or mortgage broker. Another good idea is to go see a legitimate financial planner. Let this professional assess your budget and then help you find ways to get out of debt and stay out of debt.

One other way to consolidate debt it is to transfer all your unsecured debt to one low interest credit card. This approach does have a few drawbacks though. If your credit really sucks, the credit card company may decide to hike up your interest rate without warning. If you happen to have more then just one credit card, you may have to either cut them up or put them away in a safe place to avoid the temptation of racking up new charges on them. Of course you should make the minimum monthly payments, more if you can afford it, to the card left with the balance of your debts.

Despite the fact that you have bad credit, debt consolidation is still possible. Just make sure that you're working with a reputable company that truly does want to help you get out of debt.

Kerry Ng is a successful Webmaster and publisher of The Debt Info Blog. For more great helpful information about Debt Tips visit The Debt Info Blog

By Kerry Ng Published: 11/5/2007

Why free credit card debt consolidation?

A credit card is a small plastic card used for borrowing that involves some charges. There is a hike in the use of credit cards that in turn has led to the biggest debt problem known as credit card debt. It happens when you have many credit cards and store cards whereby you are unable to pay your creditors in due course of time.

Credit card debt consolidation is the solution to all your credit card debt related problems. Many companies and online websites provide free credit card debt consolidation. There are many reasons due to which it is beneficial for you if you switch over to a credit card debt consolidation.

1. You have to pay multiple creditors but when you consolidate your all credit card debts carrying high interest rates into a single credit card debt with less interest rate, you get financial benefits as such.

2. Credit card issuers asks the consumer to pay an annual fees for the use of credit card and when you own multiple credit cards you have to pay high annual fees. When you consolidate your credit card debt, you are saved from paying such annual fees because the card issuer knows that might get new customers.

3. If you don’t know how to spend on credit cards. You might think that it is necessary to spend the whole amount of money in the specified period of time and indulge in more debts. By consolidating all your outstanding credit card debts you can later pay them as monthly installments. So if you feel that it will take more than one year to pay your outstanding credit card debt you can consolidate your credit card debt as personal loan.

4. The reason when you are building up with all your credit debts and unable to pay off your monthly credit card debts i.e. you have a bad credit rating.

5. Credit card issuers also pay you if you consolidate all your credit cards debt into one credit card debt consolidation.

For more information we recommend our website credit-card-debt-consolidation-guide.info
By Olivia Andrews
Published: 5/20/2006

Guide to Leading Christian Debt Consolidation Companies

Are you ready to take control of your finances and reclaim your faith? There are many debt consolidation companies out there offering to help, but it is only Christian debt consolidation companies that are staffed by professionals who understand your Christian convictions. They also know that your faith and your integrity require that you pay your debts, so bankruptcy is not an option you want to consider. Even among Christian debt consolidation companies, however, there are many to choose from. How do you find one that is reputable and best suits your needs? According to the informative Web site Christian Debt Help, Crown Financial Ministries, Family Life Resources, and United Christian Financial are among the leaders in Christian debt consolidation.

Crown Financial Ministries is unique in that it is dedicated to teaching the Word of God, while helping individuals, families and businesses gain financial freedom. Crown Financial Ministries is a Christian company that focuses on educating you about how to manage your money. They stress the importance of living within your means, no matter what your income. Crown Financial Ministries offers a variety of educational materials that will help teach you what the bible tells us about dealing with money, and than it follows that up with the tools you need to get your financial house in order. The services and guidance offered by Crown Financial Ministries goes far beyond the scope of most Christian debt consolidation companies. Their services include counseling, help with budgeting, guidance for children and teens, and so much more.

Family Life Resources is another of the leading Christian debt consolidation companies. They offer counseling services, education services and a debt management program. The goal at Family Life Resources is to provide Christians the tools they need to escape from the imprisonment of debt and step onto the path of financial freedom. The staff at Family Life Resources understands that as a Christian, you want to pay off your debt. With their debt freedom program, you are not taking on yet another loan to be paid off, but rather working with credit counselors who understand your needs. They will contact your creditors and help you to consolidate your debts into one monthly payment. Family Life Resources offers counseling and educational materials to guide you through each step toward your goal of financial freedom.

Another option in Christian debt consolidation is United Christian Financial. United Christian Financial is a reputable Christian debt consolidation company with a deep understanding of how your faith affects your concerns about money. United Christian Financial helps consolidate your debts without taking on the burden of yet another loan. When you use the services of United Christian Financial you’ll speak to a Debt Repayment Representative who will work with you and your creditors to get you out of debt.

No matter which Christian debt consolidation company you choose, be sure that you are working with people who understand your needs in regard to both your finances and your faith. Crown Financial Ministries, Family Life Resources and United Christian Financial are a few of the leading Christian debt consolidation companies. With any of them, you can be sure that you will be acting in accordance to the Word of God when it comes to handling your finances. They will also offer you all the tools you need to create a life free of constant worries over your finances.
By Mitchel Harad
Published: 6/20/2006