Let us create a 3D eBook for you!
Let us create a 3d Digital eBook for you! DigyCat.com

The Pros and Cons of Debt Consolidation Loans


You are swimming in debt. You have 4 credit cards maxed out, a car loan, a consumer loan, and a house payment. Simply making the minimum payments is causing your distress and certainly not getting you out of debt. What should you do?

Some people feel that debt consolidation loans are the best option. A debt consolidation loans is one loan which pays off many other loans or lines of credit.

I'm sure you've seen the advertisements of smiling people who have chosen to take a consolidation loan. They seem to have had the weight of the world lifted off their shoulders. But are debt consolidation loans a good deal? Let's explore the pros and cons of this type of debt solution.

Pros

1. One payment versus many payments: The average citizen of the USA pays 11 different creditors every month. Making one single payment is much easier than figuring out who should get paid how much and when. This makes managing your finances much easier.

2. Reduced interest rates: Since the most common type of debt consolidation loan is the home equity loan, also called a second mortgage, the interest rates will be lower than most consumer debt interest rates. Your mortgage is a secured debt. This means that they have something they can take from you if you do not make your payment. Credit cards are unsecured loans. They have nothing except your word and your history. Since this is the case, unsecured loans typically have higher interest rates.

3. Lower monthly payments: Since the interest rate is lower and because you have one payment vs many, the amount you have to pay per month is typically decreased significantly.

4. Only one creditor: With a consolidated loan, you only have one creditor to deal with. If there are any problems or issues, you will only have to make one call instead of several. Once again, this simply makes controlling your finances much easier.

5. Tax Breaks: Interest paid to a credit card is money down the drain. Interest paid to a mortgage can be used as a tax write-off.

Sounds great, doesn't it? Before you run out and get a loan, let's look at the other side of the picture - the cons.

Cons

1. Easy to get into further debt: With an easier load to bear and more money left over at the end of the month, it might be easy to start using your credit cards again or continuing spending habits that got you into such credit card debt in the first place.

2. Longer time to pay off: Most mortgages are the 10 to 30 year variety. This means that rather than spend a couple of years getting out of credit card debt, you will be spending the length of your mortgage getting out of debt.

3. Spend more over the long haul: Even though the interest rate is less, if you take the loan out over a 30 year period, you may end up spending more than you would have if you had kept each individual loan.

4. You can lose everything: Consolidation loans are secured loans. If you didn't pay an unsecured credit card loan, it would give you a bad rating but your home would still be secure. If you do not pay a secured loan, they will take away whatever secured the loan. In most cases, this is your home.

As you can see, consolidated loans are not for everyone. Before you make a decision, you must realistically look at the pros and cons to determine if this is the right decision for you.

Wesley Atkins is the owner of http://www.credit-cards-advisor.com- which aims to get you fitted with the best credit cards to suit your situation. With numerous credit card articles and easy online credit card applications you will never choose the wrong credit card again.


MORE RESOURCES:

Copywriting - Google News

This RSS feed URL is deprecated

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

Absa looks to boost card usage over cash with a campaign from FCB - Bizcommunity.com


Absa looks to boost card usage over cash with a campaign from FCB
Bizcommunity.com
Created by Executive Creative Director Gareth Paul, with creative direction by Loyiso Twala and Greg Russell, art direction from Thandeka Gilbert and copywriting from Boniso Modise, Siyabonga Moloi and Sifiso Ndhlovu, elements of the campaign broke on ...

and more »

Email marketers need to tap power of copywriting - Warc


Email marketers need to tap power of copywriting
Warc
“The power of the craft of copywriting should not be underestimated.” Order confirmations (83%), delivery updates (82%) and receipts (78%) are what consumers felt email does best. In terms of content, they unsurprisingly have a strong preference for ...

Social Media + Content Manger - Pedestrian TV


Social Media + Content Manger
Pedestrian TV
You'll be in charge of content planning, creation, copywriting, and publishing social posts across Instagram, Facebook, Twitter, Pinterest & Snapchat for all of our master brand campaigns, product launches, and day to day content plan. You'll also ...

Why copywriters are their own worst enemies - The Drum


The Drum

Why copywriters are their own worst enemies
The Drum
Andy Maslen has been persuading people to think, feel and act differently since 1986, when he first started working as an in-house copywriter. He is managing director and head copywriter at Sunfish, the writing agency he founded with creative director ...

Mid Level Copywriter - Bizcommunity.com


Mid Level Copywriter
Bizcommunity.com
The copywriter will develop, conceptualise high-quality, TTL intelligent copy and innovative creative solutions that communicate the brand effectively. Job description. Conceptualise copy and creative concepts – big picture thinking. Understand the ...

Little Marketing Genius launched in East Haddam - Middletown Press


Middletown Press

Little Marketing Genius launched in East Haddam
Middletown Press
... big plans to collaborate with small businesses all across the state. A full menu of marketing services, found at www.littlemarketinggenius.com, includes graphic design, website design, social media management, copywriting, consultation, and much more.

The Most Persuasive Sales Emails Always Follow These Strategic Copywriting Tips - Forbes


Forbes

The Most Persuasive Sales Emails Always Follow These Strategic Copywriting Tips
Forbes
“Length is strength” works as an effective slogan for hair-product advertisements, but when it comes to sale emails, the exact opposite is true. Our work lives are filled with ways to do sales and marketing, whether that's through social networks ...

SEO Copywriting: How to Write Content That Ranks - Business 2 Community


Business 2 Community

SEO Copywriting: How to Write Content That Ranks
Business 2 Community
While traditional copywriting might only need to focus on one audience, SEO copywriting focuses on at least two at all times. Users: To no surprise, our primary audience is our user. It's imperative to deliver knowledgeable as well as emotionally ...

The Art Of Persuasion: Tips For Small Business Owners - Forbes


Forbes

The Art Of Persuasion: Tips For Small Business Owners
Forbes
People often associate clever copywriting and persuasion techniques with large corporations that can afford to launch television commercials, put full-page ads in magazines and publish slick websites. The fact is, however, small businesses need these ...

LargeFriends.com - the best dating site for plus-sized singles!
SuccessfulMatchCentral.com - the best dating site for plus-sized singles!

PreLaunchX

PrimeNews Domain Is For Sale - $5,000 For Enquiries eMail Us

© www.PrimeNews.biz - 2012

home | site map | links