What You Need to Know About Debt Consolidation
by: Bill Thompson
Debt consolidation is often a last resort for people who are in extreme debt and trying to avoid bankruptcy. Many people who are not in danger of bankruptcy, but have debt on high interest credit cards may also choose to consolidate their debt. Debt consolidation is defined as the process of organizing loans and debts into one low-interest loan that can be paid off regularly. Consolidating debt can help someone avoid bankruptcy, and help them manage their money more wisely. Debt consolidation is also convenient because it becomes easier to keep track of debt and one is only required to pay off one loan rather than several debts. In order to consolidate one?s debt, collateral must be given. The collateral is usually the home, or a vehicle.
Central to debt consolidation is a debt consolidation company. It is important to choose the best company to fit your financial needs. As is common in any financial sphere, there are reputable companies, and companies that use underhanded methods to gain more money from the customer. Most debt consolidation companies do use honorable methods, but it is still important to know what some underhanded companies will do.
1. Some companies will wait until you are backed into a corner. If you know you are headed for financial trouble and wish to consolidate your debt, make sure your company starts working on it right away. Some companies will delay in debt consolidation so that the customer gets in more debt and therefore has to pay the company more money in the long run as well as short term. A customer who has to consolidate debt or else face bankruptcy can be forced to pay extremely high refinancing fees or debt consolidation fees.
2. Some companies will also charge exceptionally high debt consolidation fees to people who have high interest loans. Sometimes these fees can be extremely close to, or at the state maximum for mortgage fees. It is important to know how much companies are able to charge you, and compare that to what a company is offering. The lowest price is generally the best idea. Always be on the look out for unnaturally high fees because some companies will attempt to scam you.
3. Last, and certainly not least, you
should be aware of companies practicing ?predatory lending.? Predatory lending is a practice by some unscrupulous companies to allow their customers to become so in debt that no other company will help them. This is a way that a company can control you and make sure to make significant financial gains from your misfortune. Any debt consolidation service that attempts to control you is not a good service.
The decision to consolidate one?s debt is a very important decision. It is important to understand this fact when looking for a company. Knowing how companies will try to make extra money at your expense is imperative to having a successful debt consolidation experience. Choose the best company and you will notice a positive outcome. Debt consolidation is a wise option for people with nowhere else to turn, but it must be a well-thought-out, educated decision.
About The Author
Bill Thompson is a financial adviser and writes daily for Debt Consolidation Lowdown ( http://www.debtconsolidationlowdown.com ).
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The New Bankruptcy Law "Means Test" Explained in Plain English
The New Bankruptcy Law "Means Test" Explained in Plain English
by: Charles J. Phelan
With the new bankruptcy law in effect as of October 17, 2005, there is a lot of confusion with regard to the new "means test" requirement. The means test will be used by the courts to determine eligibility for Chapter 7 or Chapter 13 bankruptcy. The purpose of this article is to explain in plain language how the means test works, so that consumers can get a better idea of how they will be affected under the new rules.
When most people think of bankruptcy, they think in terms of Chapter 7, where the unsecured debts are normally discharged in full. Bankruptcy of any variety is a difficult ordeal at best, but at least with Chapter 7, a debtor can wipe out the debts in full and get a fresh start. Chapter 13, however, is another story, since the debtor must pay back a significant portion of the debt over a 3-5 year period, with 5 years being the standard under the...
The New Bankruptcy Law "Means Test" Explained in Plain English
Bankruptcy > The New Bankruptcy Law "Means Test" Explained in Plain English
Atkins Declares Bankruptcy....is Low Carb Dead?
Atkins Declares Bankruptcy....is Low Carb Dead?
by: Dan Robey
As many of you have already heard, Atkins Nutritionals Inc. the company that turned low carb eating into a worldwide diet craze has filed for bankruptcy court protection.
Does this mean that people did not lose weight on the Atkins diet?
Of course not, carbohydrate restriction has been proven to accelerate weight loss in the short term. Notice the last two words...short term. There is a simple reason why Atkins filed bankruptcy, people love to jump on the latest diet craze and then jump off just as quickly as they jumped on. When buyer demand slows, so do revenues.
People did lose weight, and lot's of it on the Atkins diet. The problem is that diets like the Atkins diet are hard to stick with long term. In fact, there has been little solid evidence to show that carbohydrate restriction can lead to permanent weight loss. What then is the key to permanent weight loss?
Bankruptcy > Atkins Declares Bankruptcy....is Low Carb Dead?
Health, Health Care Insurance and Bankruptcy
Health, Health Care Insurance and Bankruptcy
by: Shobhana R. Kasturi
Imagine for a moment that your health has taken a turn for the worse. You need extensive medical attention and expensive treatments. Would you be prepared to account for these medical costs? Or would you or a family member ultimately have to deal with this financial burden?
Surely, you would not want to suffer the consequences of paying big medical bills on your own. This is why health insurance is so important. A Harvard study conducted in 2001 found that medical bills caused half of all bankruptcies. Therefore, you should make sure that you have some form of medical insurance. You should also make sure that your money is well-spent on insurance that meets your needs.
Insurance Provided by Employer
You should feel lucky if you are in the minority of people who receive health insurance through your employer. According to bankrate.com,...
Health, Health Care Insurance and Bankruptcy
Bankruptcy > Health, Health Care Insurance and Bankruptcy
Get a Free Bankruptcy Form Online
Get a Free Bankruptcy Form Online
by: Jakob Jelling
If you want to file bankruptcy on your own, you can. You just need to make sure that you get the right bankruptcy form. There are a lot of different places where you can get a bankruptcy form - including online. One thing you should keep in mind, however, is that you should not have to pay for your bankruptcy form. Therefore, if you do look for bankruptcy forms online, make sure that the site you go to is not charging you for them - after all, why pay for something that is readily available free.
One thing that you may want to do if you are getting the forms online is to make sure that the forms are for your location. It is possible that laws are different depending on which state you live in, so if you are not careful, you could end up with the wrong form for your state. You should also check and make sure that you are actually getting a legitimate and official bankruptcy form - that way you...
Get a Free Bankruptcy Form Online
Bankruptcy > Get a Free Bankruptcy Form Online
The Chapter 13 Meeting of Creditors - What to Expect
The Chapter 13 Meeting of Creditors - What to Expect
by: Leon H. Rountree III
Have you recently filed Chapter 13 Bankruptcy? Do you have an upcoming Meeting of Creditors hearing? Many Chapter 13 debtors get a little nervous about the meeting since they are not exactly sure what to expect. So, I decided to take some notes on exactly what happens during the meeting for the benefit of those who have an upcoming meeting. Of course, I knew what was going to happen since I've done these hearings before for my clients, but I wanted to note the exact words this hearing officer (trustee) was using and the exact questions she was asking. Sometimes, clients have visions that creditors are going to sit there and hammer them all day with questions or something. This is just not the case, in my experience. Let's start with some basics.
What is the Meeting of Creditors?
The Meeting of Creditors is a hearing that is held 20 to 40 days after the bankruptcy...
The Chapter 13 Meeting of Creditors - What to Expect
Bankruptcy > The Chapter 13 Meeting of Creditors - What to Expect
How to Give Yourself a Raise with an Online College Degree
How to Give Yourself a Raise with an Online College Degree
by: Gerald Maccoux
If you look around you, it doesn't take long before you can begin to notice others around you engaging in some kind of self improvement activity. If we want to look younger, we diet. If we want to feel younger, we exercise. To add culture to our lives, we might learn a second language or listen to classical music. These are all worth while self improvement activities we can participate...
What You Need to Know About Debt Consolidation online degree Bankruptcy
Bankruptcy > How to Give Yourself a Raise with an Online College Degree
What You Need to Know About Debt Consolidation Bankruptcy ringtones
What You Need to Know About Debt Consolidation Bankruptcy
Diamond Setting - What You Need To Know
Diamond Setting - What You Need To Know
by: Brock Hammill
When it comes to placing your new diamond in a setting there are a couple of things to take into consideration.
Number of Prongs ? How many prongs you get is up to you. The more prongs, the more secure the diamond will be. At the same time I don?t feel that having only four prongs makes your diamond more likely to fall out. It is a matter of taste.
Material of Prongs ? What the prongs are made...
What You Need to Know About Debt Consolidation Diamond Setting - What You Need To Know
Bankruptcy > Diamond Setting - What You Need To Know
What You Need to Know About Debt Consolidation watches Bankruptcy
Bankruptcy
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