Benefits Of Secured Loans And Disadvantages Of Defaulted Loans
A secured loan is quicker to avail than an unsecured one. Lenders do not require the secured loan seekers to undergo a trying and tiresome process because they take some pledge as a mark of security for the granted loans. Evidently, the process to borrow secured loans is more flexible that that to secure unsecured loans. It is not the only reason why people go for a secured loan. The benefits of a secured loan are among the reasons. Major Benefits of Secured Loans Initial repayment holiday is a benefit for the borrowers of secured loans. A secured loan comes with an initial repayment holiday. It does not require you to pay any installment for a period of about five months. It is enough time to arrange for your repayment. You will have to pay interest for a definite period of years. You can also benefit from the freedom from the fluctuation of interest rate. Balloon repayment is another major benefit that secured loans promise. You can repay a chunk of the principal or borrowed sum in advance irrespective of usual monthly repayments. This option is handy when there is excess cash in your hands. Repayment of a part of the loan reduces the interest rate and the number of installments. In case of illness, unemployment or accident, the insurance company will pay the loan installments on your behalf. Worse Consequences of Defaulted Loans A defaulted loan is better understood as an unpaid loan. It is converted into a debt that hangs like a millstone around the borrower's neck. As the worst consequence of defaulted loans , the borrower ends up sinking into a state of bankruptcy. Bankruptcy is a severe stigma on the professional and social reputation of a person. Under such financially unfavorable circumstances, the borrower finds it almost impossible to avail another loan. Only another loan can get him relieved of the bankruptcy. Debt Consolidation to Get Rid of Defaulted Loans A defaulted loan casts a severely negative impact on the credit report of the borrower. Having a negative credit account, he cannot find any lender to grant him loan. One way to tide over the consequences of defaulted loans is consolidating the debts. By means of debt consolidation, you can get rid of your debts. It results in a number of benefits for the person who is down with an unbearable load of debts. You can knock at the door of a debt consolidation service provider.
Benefits Of Secured Loans And Disadvantages Of Defaulted Loans
Living on Private Student Loan Technically speaking, consolidation is when things are being combined into a single entity. Paying loans are very hard especially if you have many loans, a student loan consolidation is the best approach of paying all of it. However, is there a need for students to consolidate their loans? Consolidating the loans of the students means they are not running away from it therefore gaining trusts from their creditor.
Student loan consolidation has been beleaguered by made-up stories and myths. That's why these lies should be given complete explanations here to erase the confusions in the students.
Misconception #1: Never mention the term consolidation to the creditors or they will eat you alive.
Valid explanation: Student loan consolidation is just one type of consolidation, the other one is that for the consumer's debt. The kind of consolidation that the credit world wouldn't want to have is the consumer debt consolidation. When you go to a credit company and want to have a consolidation of your loans, they will gladly assist you and help you in every way they can.
2nd Fallacy: If you have a single lender, then don't ever think that you can still have your loans consolidated.
The correct one: On June 2006, the Congress, together with Former President Bush, succeeded in eliminating the single lender rule. A certain loan company for students have filed a case against the education department which serves as a kick-off event for the abolishment. There's no need to be worry right now because you have the choice to select the lender that you want your consolidation to avail with.
If you're not a rich kid, then probably you're thinking twice in getting to college because the fees are very expensive. People and/or students are being accustomed in having different loans to aid them survive the college life. Don't do what others do when they graduated that they run away from their obligations to pay the loans that they took.
With the advancement of our technology, the price of getting to college also increases. Those who finish high school only would most likely be working under a college degree holder. The more you are closer to graduating is the more your fees to be paid increases especially on various projects and thesis, a private loan would be able to solve your problem.
But acquiring a private student loan requires various determinants in order for it to be approved. It wouldn't hurt anybody if you're going to be a little bit cautious in transacting with credit officers and representatives. For their credit team will set a trap to make you avail the loans that will benefit them greatly rather than you. Below are some of the tips that you can use to avoid being deceived.
#1: Find a reliable consignee.
Only a few of the creditors will allow you to apply a loan without any consignee but still this is a case-to-case basis.
2nd Tip: If there are many credit companies in your location, try to inquire each one of them with regard to the loan that you want.
Most likely the companies that have been around for years are a sure hit and a trusted one so check every possible means to apply for a loan to them.
#3: When you are all ready and all set, you can now have them to process your loan.
If still allowed, you can try to bargain for the interest rate before everything is settled.
Don't go for a private loan first when you encounter financial problems with your college plan; try to ask your school for any scholarships that are available. If you think you are intelligent enough, various companies a re offering scholarships to individuals who have high intelligence. Grades and behavior should be present when you go to college because it's useless if you're intelligent but no one likes your attitude. If private loans are the remaining option for you, then by all means apply for it so that you can go to college.
The difficulty in getting a college education has increased in the past few years because of the worsening economic situation all over the world, particularly the United States. Due to efforts from government and financial institutions, student loans are getting easier to apply for. People defaulting are getting more common, however, because of the worsening economic and financial situation. In order to help people pay their loans, student loan forgiveness programs were set up by some organizations and government institutions. Aside from helping students minimize, in some cases eliminate their student loans, these programs help get these students much needed job experience. A criterion will determine if you are qualified for a program that will pay off a portion, if not all, or your loan. A service of some sort is required as exchange. The service you need to render can be anything, like volunteer work or public service.
Volunteer work is involved in most of the many student loan forgiveness programs available, and only for a certain number of hours. You can choose from the following.
. Teaching You will be teaching in elementary or high school and you will also have the option of becoming a full-time teacher. Your assignment will be teaching kids from poor and under-privileged communities. This will greatly benefit those with education majors or future teachers.
. Public Service This recently added program involves a job in public service. Meaning, it's a job in the government, or governmental institutions. This is a chance for you to serve back the government or the people.
. Volunteer organizations Volunteer organizations like AmeriCorps and PeaceCorps lets you join them as part of their student loan forgiveness program. In order to reach out to people in need, which you'll have to do, you get to travel the world.
. Military Service As part of its loan forgiveness program, the military will give you the option to serve in any of its branches. At least one tour of duty is required of you in this program. The program also gives out other benefits. You also get to defend your country.
COMPLAINT #1 (Office of Inspector General / Department of Education) "Anyone suspecting fraud, waste or abuse involving Department of Education funds or programs should call or write the Inspector General's Hotline.. OIG Fraud Hotline" ~ ed.gov Sallie Mae was the _only_ financial lender involved in the diploma mill fraud... and now ask Congress for a bail out?? GO TO GOOGLE AND RESEARCH THESE 2 THINGS: 1. Westwood Diploma Mill Scam 2. 60 Minutes Sallie Mae Fraud Students say college misled them Tuesday, February 22, 2005, By BYRON HARRIS / WFAA-TV "The sales pitch said Westwood is accredited; students said that led them to believe the school has the same academic status as well-known colleges and universities. But the sales pitch doesn't mention the fine print on the back of the contract, which said "Westwood College of Technology makes no guarantee of credit transfer." In fact, these students found that when they presented their Westwood transcripts to other schools, the reaction was anything but positive."You can just keep this ... because we don't recognize this institution as a school," Moers recalled one school's representative as saying. Westwood is headquartered in Denver, and claims it's been around for more than 50 years. However, Colorado state incorporation records indicate the current owner began business in 1986. ...talk with News 8 about complaints against the school, but when a crew got there for our scheduled interview, two representatives from the home ...
Debt relief report : Top 5 tips to solve your debt problems
Accept the situation
A problem that a lot of people are having is that they don't accept the fact that they're in debt. Most of the time, they feel very ashamed to be in a difficult financial situation because of their strong values. As a result they hide their problems from their family and sometimes do nothing to get out of debt. To get out of debt, you must understand that it's a common situation. A lot of people are in a difficult financial situation because of an unexpected event like a disease, a divorce or an accident. The first step to get out of debt is to accept the fact that it's not your fault and to remember if you take action you'll soon be able to make projects again.
Tell your family and friends
You should always tell about your family and real close friends about your money problem. First of all, they can help you to get out of the situation. Maybe they were in this situation before event if they never told you. Secondly, if you don't tell them about your money problems they can ask you to go out in expensive places or in expensive holidays. It's really hard to refuse anything to a close one. If one member of your family tell you he organised a dinner in a nice restaurant it will be really hard to say no. To avoid this situation the only solution is to tell them about your money problems.
Don't take other loans
Sometimes people in a difficult financial situation are applying for a loan to pay other loans. If you do that you'll soon not be able to pay your debts. Loans are great way to build a house, buy a car and do some fabulous project. But loans can't get you out of debt. So stay away from them if you have money problems.
Control your credit card spending
A common mistake that people with money problems make is still using their credit card. If you don't have any money on your account just don't go out with your credit card. If you have money but your budget is limited what you can do is just withdraw the necessary amount before going to the mall.
Enroll in a debt relief program
There are a lot of good debt relief programs. Depending on your situation, debt consolidation, debt settlement, debt management plan can help you to solve your debt problems. Before you choose a program or a service make sure to know what is debt relief. It's very important because a lot of companies involved in this industry are lot legitimate.
Debt relief report : Top 5 tips to solve your debt problems
Default Student Loan Assistance - The Key to Escape From Falling Into Dire Straits
The present world considers education to be one of the essential factors in an individual's life. There are many career enthusiasts who crave to pursue higher education. However, some cannot make it possible owing to financial challenges and some knock at the doors of financial institutions for assistance. Now, banks have always been among the preferred options to borrow loans. Students who are unable to continue studies for financial inability apply for student loans. With the help of this financial support, they smoothly carry on with their academic journey. Now, once it ends, the loan should be repaid in time or otherwise it will be treated as a defaulted loan. Once it is declared default, the following step will be to look for default student loan assistance.
When your student loan comes under the category of default student loan, you might face a good number of perilous consequences. First of all, your credit score reaches zero and once it happens, your tax returns are withheld. This consequently gives rise to a situation where you are almost compelled to repay. Further, when you fail to do so, legal actions are taken accordingly. Moreover, you lose every benefit applicable for a student loan borrower. However, you don't need to get panic if you are among the loan defaulters. There are several ways to seek out default student loan assistance.
If you are associated with military service, you can get your defaulted student loan canceled. You can even waive off your defaulted loan if you are already enjoying a National Direct Student Loan. Moreover, if you are a part of the Head Start Program or the Peace Corps, your defaulted loan can also get erased. If you are being subjected to bankruptcy, you can do the same.
While asking for default student loan assistance, make sure that you coordinate with the government regarding any action that can help you to recover the amount from the third party. However, if you face any further complication, you can always get in touch with the loan department for default student loan assistance. .
Keep in mind, if you are not able to release yourself from your defaulted student loan status, you might face pathetic consequences. Therefore, default student loan assistance is a must for you. With private student loan consolidation, students enjoy a good number of advantages. For instance, the borrowers can always reduce their monthly payments and extend their term of repayment of their private student loan. If you are one of the borrowers with improved credit, you can even enjoy low interest rates. However, if you are running with an improved credit, the present loan holders might not agree to lower your interest rates. .
Moreover, you can apply for private student loan consolidation on your own or with the help of a credit-worthy co-signer. For undergraduate borrowers, they can get up to a 25 year repayment term and that too with the lowest possible monthly payment. On the other hand, a graduate student borrower can receive up to a 30 year repayment term. To sum up, private student loan consolidation acts as one of the most secured tools for those who cannot even dream of education. To know more about default studentloanassistanceand private student loan consolidation, you can always talk to agents online or send mails to them and sort out queries.
Default Student Loan Assistance - The Key to Escape From Falling Into Dire Straits
What Does Government Credit Card Debt Assistance Offer?
Recent statistics are showing the highest rates of delinquencies amongst credit card debts since the late 1980s. The current financial status goes hand in hand with the rising rates of unemployment to complicate the budgets of thousands of Americans; hence, about 10% of credit card holders aren't able to pay back their credit debts. Government credit card debt assistance is increasingly offering solutions to middle and low class debtors to help them settle their delinquent loans.
Federal credit counseling agencies are the main source of assistance channeled to struggling debtors. Many accredited credit counseling agencies offer valuable resources, advice and even funds to eligible credit debtors. Those agencies offer their services free of charge to all American citizens. The Association of Independent Consumer Credit Counseling Agencies (AICCA) is an example of those non-profit organizations.
Credit counseling agencies can help you determine the right solution for your accumulating credit debts. Usually, credit debtors who are no longer capable of paying their credit card bills are usually faced with one of 3 solutions; consolidation, modification or bankruptcy. However, the right solution in a certain situation may be a disaster in another. If your credit counselors advices you to resort to consolidation loans, that means that they would help you get another loan to aid in repaying your credit card debt. The consolidating loans are set to interest rates that are lower than those of the original debt.
Credit counselors may direct struggling credit debtors to modify their credit loans. Modification of a debt is a re-adjustment of the terms of the monthly payments so that they can be afforded by the debtor. Counselors propose on your behalf to your credit card company and request a suitable modification plan to your debt. Loan modification often involves a reduction in the monthly invoices and/or temporary reduction of the interest rates. Testimonials report that eligible credit debtors, especially those with incomes below the federal poverty line, can get federal financial funds to help them pay off their credit debts.
Declaring bankruptcy is sometimes the sole way out of your credit debt problem. Your credit counselor should help you file the legal papers required to declare bankruptcy. Bankruptcy involves selling all the debtor's assets to partially compensate debtors. Government credit card debt assistance provides a valuable pack of tools that are continuously helping credit debtors out through free counseling, advice and even funds for special eligible debtors.
What Does Government Credit Card Debt Assistance Offer?
