Tag Archives: debt

Repair your Default Status as soon as Possible

It’s the duty of each and every loan borrower to repay the entire loan amount to one’s lender. The majority of college goers take help of student loans to continue education flexibly, and thereafter, they are asked to pay back the loan in time. Since it’s not easy to start making repayments just after completing graduation, the loan lender sets a time period that can be convenient for the borrower to meet all his installments. However, it’s found that many students fail to make their payments despite getting sufficient time. When the loan lender finally discovers that the borrower has not provided payments for nine consecutive months, he categorizes the loan as a defaulting student loan.

With a defaulted loan, life can turn into a mess. Whether it’s your work or domestic life, everything will be affected once your loan lender transfers your defaulted loan account to the credit bureau. Moreover, your credit score will drastically fall and this will deprive you of getting further financial help from loan lenders and banks. Well, if you are one of the student loan defaulters, you have to take smart initiatives and that too in almost no time to get rid of your defaulted status. The more you delay, the more the complications.

So, here are some of the best possible ways that can help loan defaulters stay out of dire straits:

  1. If you are burdened with too many loans, you can still manage to meet them with the help of consolidation scheme. Well, it’s not easy to make each loan payment at the end of every month. In this respect, student loan consolidation will allow you merge all loans into one and make a single payment. In fact, your repayment time period will also get extended.
  2. You can always file for bankruptcy. If you think that it’s not possible for you to make the loan repayments along with other due debts, filing bankruptcy will always be a good option. Get in touch with a professional attorney who will help you get your loan erased.
  3. Enroll in special programs designed for defaulting student loan. There are loan rehabilitation programs and loan deferment programs for which you can always apply to improve your credit score. You can always take help of your lender who can help you make all the arrangements in time.
  4. The Federal Student Aid rehabilitation program is probably the best scheme to keep you miles from getting your credit report stained. So, you can either talk to your lender or consult any financial advisor.

So, it’s crystal clear that defaulting student loan has several unpleasant consequences. Therefore, the sooner you talk to your lender, the better it is.

Author’s bio:

The author here has provided us a number of ways that can help student loan defaulters stay miles from falling prey to legal complications. One should get rid of one’s defaulting student loan without any delay.

When and How to Consolidate Credit Cards Debts?

credit card debt

By: Andrew

As my wallet gets full of plastic cards and my mailbox gets full of credit card bills, this is the time to consolidate my credit cards. Just like other consumers, I prefer to organise my finances especially these days when costs of living simply get out of control. Carrying lots of credit card debts surely make anyone’s finances all the more crumpled. That is why it is high time to consider several available options to consolidate my credit cards.

I want to save on costs and lower interest repayment expenses. This is the usual intention why consumers aim to consolidate debts. There are several ways to consolidate my credit cards to attain lower interest rates and shoulder lower monthly payments. Stretching the duration of such loans would also be strategic.

Balance transferring of credit card debts

I have learned that one of the most effective, fastest, and manageable ways to consolidate my credit cards is through doing balance transfer transactions. This means consumers should intend to transfer their balances on high-interest credit cards into a single credit card, which facilitates such transactions and offer a much lower interest rate.

As I consolidate my credit cards through balance transfer, I make another decision. Should I use a 0% interest rate or a lifetime low-interest balance transfer? The 0% interest rate balance transaction is usually offered as an introductory scheme and would only be effective in just six months or shorter, as specified by the credit card firm. After that period, any transferred balance would incur a higher ‘revert rate,’ which could reach up to 19.99%.
Transferring balances and closing accounts

Another option I have been considering when I intend to consolidate my credit cards is closing the credit card accounts after transferring balances of some of those into a single low-interest one. Many consumers would agree that this is a wise move especially these days when credit card purchases get more tempting. If I get rid of some or most of my credit cards, I would surely manage purchases and debts more effectively.

How should I decide which credit cards to lose?

When I consolidate my credit cards, the first thing I look at is the interest rates applied. I prioritise repaying debts in cards with higher rates. Once I have cleared balances on such cards, I consider closing the accounts. This way, I would never struggle to fight the temptation again to use them and to seize opportunities to earn special ‘rewards’ points from purchase transactions. Are such points worth all the fees I pay and the troubles of accumulating debts?
Consumers like me should not wait further to control and manage credit card debts.

It is always the best time to consolidate my credit cards before debts get higher and before I get into further troubles. After all, keeping one or two multipurpose and low-interest credit cards would surely be adequate to cover my basic card purchases. How about you?

– Andrew has been working in the finance industry for several years.