Debt Consolidators - Consolidate Credit Card Debt With Bad Credit

Bad Credit Debt Consolidation loans are popular because they offer low interest rates to borrowers with poor credit. This is important because traditionally poor credit borrowers usually have to pay higher interest rates for their loans. Getting a home equity loan can give you the best rate available for your loan. The only downside of this loan is that you will lose your home if you do default, so be careful before taking an equity loan out.

"Eliminate 70 percent of your credit card debt in 24 hours!" "Get rid of your credit card balances without bankruptcy -- guaranteed!"

Bad Credit card debt consolidation loan is beneficial for borrowers, for example, available at lower interest rate compared to current one, one lender in place of various lenders, one loan in place of various loans, only monthly installment and so on. Credit card debt consolidation loan is not only helping you financially, but also improving your credit history.

In Bad credit card debt consolidation loan, if borrowers fail to make repayment on time then they will be charged for late payment and it is also mentioned on their credit report also. The main loss of late payment is, borrower may lose the benefit of reduced interest rate or it may leave where he was earlier.

You can begin to find solutions to your Bad credit card debt situation by determining how much credit you have and finding the right loan for those needs. There's a good chance that the loan that you need is available to you, if you have some type of security to put up as collateral. You must have some type of valuable asset that the bank can hold as collateral in the event you don't make the payments on the loan. This is just the way it is. If you have assets you can use to secure the loan then you're on the right track as it only takes locating a good credit card debt consolidation company with a good interest rate to get started.

One common method people use to manage their bills better is consolidating them all into one low monthly payment while negotiating a lower interest rate and eliminating late fees and over the limit fees. You can try and do this yourself or you can employ a debt consolidation company to help you manage the plan. They may have more negotiating power with your creditors to get you a better deal than you could on your own.

As you can see, securing a credit card consolidation loan can often make things a bit easier for everyone that is involved. These loans can be as affordable as you need them to be, especially if you secured them with the value in your home. For many people, the best part of the equation is ending up paying less every month. However, it can be just as gratifying to see the total amount of money that you pay out to be much less.



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On the House: Good, bad of reverse mortgages

A few weeks back, I wrote about a National Consumer Law Center study reporting that some of the same people who sold subprime loans now sell reverse mortgages.

Even so, there are people 62 or older who might benefit from reverse mortgages, if they can find reliable providers.

"I basically know how they work, that they are not for everyone and should probably be used as a last resort for income," says reader Lois Girard. "Many people have lost substantial investments needed for retirement and may need this product."

I received a dozen similar requests for details. Here's what I can tell you, based on information from the Federal Trade Commission and the Department of Housing and Urban Development, which insures about 95 percent of these loans. (More facts can be found at www.ftc.gov or 1-877-382-4357 and at www.hud.gov or 1-800-225-5342.)

There are three kinds of reverse mortgages:

Single-purpose loans, offered by some state and local government agencies and nonprofit organizations for one-time major expenses like property taxes or roof repairs. Information: www.eldercare.gov, 1-800-677-1116.

Home-equity conversion mortgages (HECMs) insured by HUD.

Private loans backed by the companies that develop them.

HECMs and private or proprietary reverse mortgages cost more than traditional mortgages. HECMs have no income or medical requirements and can be used for any purpose.

How much you can borrow depends on your age, the type of reverse mortgage, the appraised value of your home, and current interest rates. The older you are, the more equity you have, and the less you owe, the more you can borrow.

HECMs require counseling with a HUD-approved agency that costs $125, typically paid from loan proceeds. Find a list of agencies at the HUD Web site or by calling 1-800-569-4287.

There are pluses to reverse mortgages:

How you get the money is your choice - fixed monthly payment, lump sum, credit line, or a combination. You can change the payment option at any time for $20.

If you receive more in payments than your home is worth, you will never owe more than the value of the home.

Loan advances are not taxable and generally don't affect Social Security or Medicare benefits. You retain title to your home. You don't have to make monthly repayments.

The loan must be repaid when the last surviving borrower dies, sells the home, or it is no longer the primary residence. HECM programs allow borrowers to live in nursing homes or other medical facilities for up to 12 months before a loan becomes due.

After the home is sold and the loan and fees are paid to the lender, any remaining equity belongs to you or your heirs.

And there are minuses, too:

Lenders may charge servicing fees during the loan's term.

Debt increases as interest is charged to outstanding balance.

Most loans have variable interest rates tied to short-term indexes.



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