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Best College Student Credit Cards of 2017

Best College Student Credit Cards of 2017

When you’re a student, you will probably get bombarded by credit card applications at your college campus and via the mail. Although it’s important to start building your credit while you’re still young, it can be daunting to decide on a particular credit card. Which one is right for you? How do you go about choosing one to suit your specific needs? The best thing to do is to select one that is specifically designed with students in mind. Here are some of the best student credit cards for 2017.

Citi ThankYou Preferred Credit Card for College Students

One of the best things about the Citi ThankYou Preferred credit card for college students and that helps it to stand out from other student cards is that it offers rewards all year long. On top of that, it even offers a bonus just for signing up. Enjoy 2,500 bonus ThankYou Points after you spend $500 within the first three months of opening your account. The card is great for any student who spends money on entertainment as you can gain two percent rewards when you dine at restaurants or use your card toward entertainment. You can redeem your ThankYou Points for a number of things, such as books, travel and student loans, as well as at a number of places. The introductory APR on this credit card is zero percent on all purchases for the first seven months and then 14.49 to 24.49 percent afterward.

Discover it for Students

The Discover it for Students credit card is generally the best option for new credit card users. It offers a zero percent introductory APR for the first six months and 10.99 percent on all balance transfers for that same amount of time. After that time frame, you can expect a re
gular APR ranging between 13.49 and 22.49 percent. You can get access to your free FICO score while your gradually build your credit, meaning you can check whether you are using the card responsibly. Earn five percent cash back in categories such as restaurants, Amazon, wholesale clubs and gas stations each quarter and one percent cash back on all your other purchases. There is even a perk that allows you to get $20 cash back each year when you maintain a GPA or 3.0 or better for up to five years. There are no annual fees and your APR doesn’t increase even if you pay your bill late.

Journey Student Rewards from Capital One

The Journey Student Rewards from Capital One credit card is undoubtedly the best card for students who are responsible with their credit card usage. With it, you can earn one percent cash back on all purchases. There are no annual fees and you can earn a higher credit line after making your first five monthly payments on time. The great thing about this card is that you can even qualify for it with average credit. Your APR is 20.49 percent, although there are no introductory promotions where the amount starts at zero.

US Bank Secured Visa Card

The US Bank Secured Visa Card is the best secured credit card for students. This is one of the cards for which you can qualify if you have poor or even limited credit. There is an annual fee of $29 and a regular APR of 19.24 percent. For cash advances, the APR is even higher at 24.24 percent. With this card, however, because it is secure, you get to choose your credit line with a deposit of your own money. The accepted amount is anywhere from as low as $300 to a maximum of $5,000. With responsible usage of this card, you can eventually move on to a secured credit card.

These are some of the best credit cards available for students in 2017. Researching a few options is the best way to find the one that’s best for you.

Think Twice Before Rolling Credit Card Debt Into Mortgage Refinancing

Think Twice Before Rolling Credit Card Debt Into Mortgage Refinancing

Credit card debt is a common problem across the country. In fact, the average American family with credit cards has about $15,000 in credit card debt alone. With debt loads at high levels, many people are looking for ways to escape from underneath the crushing debt and high interest rates that most credit cards carry. One option for paying off credit card debt is to roll the debt into a mortgage when refinancing a home. Though this option will work, homeowner need to understand the potential problems that can come from using the equity in a home to pay off credit card debt.

Mortgage Refinance Savings

The primary reason that people chose to roll credit card debt into their mortgage is to obtain a lower interest rate on the debt. While mortgage rates start at below 5%, credit card interest rates average about 20%. On a $10,000 debt, the interest difference is $1500 per year. The savings created by the lower interest rate would allow a person who is in debt to pay off the debt much more quickly even if he or she kept paying the same monthly payment amount. However, as mortgage payments are spread out over a long period of time, many people will only make the minimum payment amount and not really pay the debt off any faster.

Credit Card Debt Transferred to Home

While paying off credit card debt when refinancing a home sounds good, the truth is that the debt isn’t really being paid off. The debt from the credit card is being transferred from the card to the home. The primary problem with this is that credit card debt is unsecured, while a mortgage debt is secured by the house. In simple terms, the worst case scenario for not making credit card payments is that the credit card company sues. However, the penalty for not making mortgage payment is the loss of the home. Additionally, the act of paying off the card can provide homeowner’s with a false sense of making progress on the debt, while the debt was really just moved from one place to another.

More Debt

For most people who pay off credit card debt with a mortgage, it won’t be long until the credit card debt starts piling up again. This is a serious risk for people who are already struggling with their current debt payments. The availability of credit created by paying off the card debt can be quite the temptation. Those people who fear that they might run up new debt after paying off the credit cards might want to consider cancelling the credit cards to remove the temptation to use them.

How Do Hard Money Loans and Traditional Mortgages Differ

How Do Hard Money Loans and Traditional Mortgages Differ

Paying cash for a home or other real estate property simply is not an option for most buyers. Financing the purchase is the only option for many, but financing can take more than one form. A traditional mortgage is the loan type the bulk of the would-be buyers are familiar with. A hard money loan is another option, but not as many people fully understand how this type of alternative loan works or what is its purpose.

The Traditional Mortgage

A traditional mortgage is a standard loan issued by a bank or other financial institution such as a credit union or a special mortgage lender. The loans are issued at a particular interest rate that may be fixed or variable. Terms of a mortgage loan are 15 to 30 years. Anyone who takes out one of these loans does have the option to refinance in the future. The lender also has the option of selling the debt to another financial institution or even to an investor.

The Hard Money Loan

Hard money loans are similar to a traditional mortgage in the sense they are used to procure property. The differences, however, are significant. The most obvious difference is the funding comes from private investors instead of a bank. The private investment intended to support a hard money loans may even be part of a collective fund. Private lines of credit may even be issued. The key point here is a hard money loan is a privately-issued mortgage.

The Property and Borrower in Question

Hard money loan borrowers are mainly people interested in purchasing distressed or otherwise troubled properties for resale. A home that suffered from the ravages of a fire is not exactly a property a bank would be interested in financing. A hard money lender would be willing to put a loan in the hands of someone with intentions or repairing and reselling the home. Of course, the resale has to cover the interest, principle, and repair costs for the borrower to make a profit. The lender, however, is not interested in the borrower’s ability to make a profit. The lender simply has to feel confident the loan will be repaid.

The Pros and Cons of a Hard Money Loan

There are upsides and downsides to a hard money loan. For one, a hard money lender may be more willing to take a risk with a troubled borrower. Private investors who are not risk adverse or wish to put some of their funds into volatile ventures won’t be too troubled if the borrower has a marginally checkered credit history.

Closing with a hard money loan is a lot quicker. With a traditional mortgage, there are numerous steps to the closing process. Hard money lenders are more interested in closing the deal quickly — a plus for those who wish to move with buying a property.

A potential borrower has to accept a simple fiscal truism: higher interest rates are almost unavoidable. Due to the nature of hard money loans, the interest rates are going to be higher than a standard mortgage.

Additionally, a hard money lender is not going to set up a long-term repayment plan. The loans are higher-interest investment strategies designed to yield a return on investment in an expedient amount of time. Hard money loans may require repayments within a year. Investors and property flippers are likely the only borrowers who would be interested in a loan with terms of this nature.

A hard money loan is really not for everyone, but it is not intended to be either. Those who are a right fit for hard money loans do appreciate the opportunity the loans offer.

Cashing Out Structured Settlement & Annuity Payments

Cashing Out Structured Settlement & Annuity Payments

Structured settlements and annuity payments are wonderful items to have, especially during times of unemployment. However, they may not be the best option for the annuity owner in all situations. Some annuity owners may consider cashing out on their structured settlements. Some companies will gladly buy structured settlements from people and provide them with the lump sum funds that they need for a variety of reasons. The following is some information on selling structured settlements and annuity payments.

 When Should a Person Cash Out an Annuity?

A person may want to sell a structured settlement for a number of reasons. One of the most common reasons that people sell their annuities is that they can not afford to pay the bills with the limited income that the structured settlement provides. The recipient may still be recovering from a personal injury and need to have more available funds to keep from losing the home and other assets. A new home or car purchase is another reason to think about cashing out an annuity. Business investments are other possibilities.

Types of Annuity Purchases

An annuity owner does not necessarily have to sell the entire annuity. Some companies will buy parts of an annuity and allow the owner to keep the rest of it. This type of arrangement is best for a person who is healing from an injury and can go back to work after the injury subsides. The lump sum may be necessary to pay the bills now but may not be needed later. The person can sell half of it, a quarter of it, or an extremely small portion of it depending on the circumstances.

How to Pick the Right Company to Sell an Annuity

It is important for a consumer to choose the right company when trying to sell an annuity. Each company varies in the amount that it offers for annuities. A prospective annuity seller should compare at least three companies before deciding who to sell the annuity to. The person should review the website and call the company to ask any questions that he or she needs answers. To check the integrity of the company, the prospect will want to read the consumer reviews and visit sites such as the Better Business Bureau site so see what people have to say about working with the company.

How to Sell an Annuity Today

The person who wishes to sell the annuity will need to have some information on hand. The prospective buyer will want to have proof of the annuity. Some companies will ask for the person’s lawyer’s information so that they can speak with the lawyer about the annuity.

The process usually starts when the interested person asks the other company to buy his or her annuity. The company takes information and then sends the prospective seller a quote for the amount that it can pay for the annuity. If the person agrees with the quote, then he or she will express interested in completing the process.

The prospective buyer creates a contract that the prospective seller will need to read and show to his or her lawyer. If everything in the contract looks kosher, then the prospective seller will sell the contract and give the green light to the prospective buyer. The buyer will then send the cash advance. The two parties will need to have approval from a judge before the transaction can complete. Once the judge signs off on the agreement, the process is finished, and the recipient can use the funds right away.

Should You Sell Your Annuity?

Structured settlements should never be stressful for a person. You should be able to relax and not have to worry about stressful events such as losing your home. If you are experiencing stress because of the way you receive payments, then you will need to seriously consider selling your annuity so that your life can operate in a smoother fashion. Talk it over with your financial adviser and then decide whether or not you want to go through the processes. Some of the companies that purchase annuities can make it well worth your while to sell yours.

Will Pet Insurance Cover Dangerous Breeds?

Will Pet Insurance Cover Dangerous Breeds?

Pet insurance is something that all pet owners should consider. The insurance covers a wide variety of instances and situations that may occur during one’s time as a pet owner. One question that pet owners may wonder is whether the insurance covers breeds of animals that have a reputation as being dangerous. The following is some information about pet insurance and the answer to that question. A consumer can make an educated decision about whether to purchase pet insurance or not after reading this.

What Is Pet Insurance?

Pet insurance is coverage for pet owners that take cares of a wide variety of situations and conditions. It provides the pet owners with a way of saving money in the event that something unexpected happens to the pet. The insurance is similar to human insurance and works the same way in terms of claims and payments.

How Does Pet Insurance Work?

The pet insurance has the same parts to it that regular human insurance has. It has a monthly premium that the pet owner pays just to have access to the benefits that the plan offers. The deductible is the amount of money that the pet owner has to pay out of his or her pocket before the insurance company will pick up the bill. The annual benefit limit is the most that the insurance company will pay out for benefits in any given year. The coverage is the percent of the bill that the insurance company agrees to cover for the client. The reimbursement model is the way that consumers receive the monies back from the insurance company.

Insurance policy holders pay a fee every month to have the benefit whether the pet gets sick or not. When the pet has an issue, the policyholder has to complete a claim. The insurance company will investigate the situation and then handle it according to the specific plan. Therefore, it is highly important that the consumer chooses a package that is acceptable to him or her.

 Which Animals Does Pet Insurance Cover

Many pet insurance policies cover cats and dogs only. Some insurance policies cover exotic birds and other exotic pets. Examples of some of those exotic pets are iguanas, snakes, ferrets, rabbits, turtles and various amphibians. That answers the question of whether insurance covers dangerous pets. Some policies do.

What Conditions Does Pet Insurance Cover?

Pet insurance usually does not cover preexisting conditions. However, it does cover a wide range of conditions that may occur after the pet owner purchases the insurance. Many policies cover chronic conditions, congenital conditions and hereditary information. Some policies may cover hospital stays, diagnostic testing and surgery. Additionally, some policies offer wellness services such as shots and flea and worm prevention. Prescription medication and holistic treatments may be a part of the solution, as well. Comparing at least three providers is necessary to find the best one in some cases.

Things Insurance Does Not Cover

There is a list of things that pet insurance generally doesn’t cover along with preexisting conditions. Pet insurance usually does not cover waste removal or disposal of any kind. It does not usually cover grooming costs as they are a normal part of everyday life that the owner should cover. Policies do not cover the pet’s transportation from one place to another either. Furthermore, the benefits don’t usually cover boarding and storage. An interested person must ask questions before purchasing pet insurance. It is necessary so that the individual knows where he or she stands in terms of reimbursement.

How to Find Reliable Pet Insurance

Finding reliable insurance requires research and perhaps the use of a good comparison tool. Once the consumer finds a good policy, the application process is easy from there. The provider’s site will usually have an “apply” button that the person will need to click to open the application. After the application opens, the individual will need to answer some questions about the pet and the type of coverage that he or she desires to have for the pet. Payment will most likely be one of the last steps in the process. Some of the benefits may begin within 24 hours after the person purchases the policy.

5 Credit Cards Perfect for New Homeowners

5 Credit Cards Perfect for New Homeowners

Becoming a new homeowner is a wonderful experience because it gives a person a sense of independence and a sense of belonging within his or her community. Another thing that can give a new homeowner a sense of pride is owning a credit card that boosts his or her ability to be an amazing homeowner. The following are five credit cards and a bonus card that are great for new homeowners. New homeowners should not hesitate to apply for one of these options today.

Lowes Credit Card for Home Improvement

Home improvement projects are bound to come up in the life of a new homeowner. The bathroom tile may seem unattractive after a while. The hot water heater may need to be replaced. Something else may need to be done. The Lowe’s credit card is a card that allows cardholders to get materials from Lowe’s for home improvement and pay for it in monthly installments. The credit card is great for relieving the stress that new homeowners may have about keeping everything up to par. It can help to improve or establish a person’s credit score, as well. Consumers have been known to receive approvals for thousands of dollars no the Lowe’s card.

The Home Depot Credit Card

The Home Depot credit card is another option that works well with the life of a new homeowner. Home Depot offers a consumer card and a commercial option. One of the consumer cards that the company offers is the has a MasterCard logo and provides the consumer with up to 84 months to pay for the purchase. The credit lines can be as much as $55,000. The card also sports a fixed APR of 7.99 percent. New homeowners can get a lot from this option.

American Express Blue Cash Card

Homeowners usually have large families, so they spend a lot of time providing for those families. Grocery shopping and fuel refills are common for such people. The American Express Blue Cash Preferred card is a great option for families that spend a lot of money at the grocery store. The card provides consumers with 6 percent cash back on their purchases at the grocery store. Additionally, the cardholder can earn 3 percent cash back on fuel purchases and one percent on all other purchases. The card is absolutely amazing. To top it off, the provider offers a prize of $150 to anyone who spends $1,000 within the first three months of owning the card.

Capital One Venture Card

Homeowners have to travel for vacation, business trips and other ventures. Therefore, a card that provides points that help to pay for those trips is a perfect option. The Capital One Venture Rewards Credit Card is an option the provides points that cardholders can use for travel. New cardholders get immediate access to 40,000 points to new cardholders who spend at least $3,000 within the first three months of receiving the card. The card offers 2X points for every single purchase that the cardholder makes and not just certain ones. That makes usages easy and uncomplicated.

Wells Fargo Platinum Visa Credit Card

Organizing credit is a task that new homeowners may need to achieve. The Wells Fargo Platinum Visa card is a great option for people who need to organize their credit. The balance transfer card provides 15 months of an 0 percent APR arrangement. The card also has no annual fee, and it provides the consumer with $600 worth of cell phone coverage.

Target Credit Cards

The Target credit card is an excellent option for consumers who intend to do a great deal of shopping. It offers many perks such as 10 percent off the initial purchase and 5 percent off of future purchases. The card has no annual fee, but it does have fees for late payments and returned payments. Users can enjoy some excellent discounts, however.

Applying for a credit card is easy once the consumer knows what he or she desires. The person has to answer questions about address, identifying information, financial situations, living arrangements and more. The application will return information about the company’s decision in approximately 60 seconds. The consumer will receive a new card in seven to 10 business days.

Becoming Budget Savvy in the New Year

Becoming Budget Savvy in the New Year

In order to experience personal financial gain, we need to spend less than we make. If your current income is not enough to pay bills, groceries and other expenses, a strict budget can be advantageous for turning things around. Having money set aside in a savings account allows people to have the funds for emergencies, retirement and vacations. Living paycheck to paycheck can be downright dangerous if an emergency situation comes into play. In fact, a recent study done by the Federal Reserve concluded that 53 percent of study candidates only had enough extra money to cover an emergency situation costing about $400. If the hypothetical expense came to more than this, respondents of the study would have to borrow money or sell personal items to pay for it.

For some, a lack of adequate income is the blame for financial woes. However, for most Americans, their financial problems are a direct result of overspending and straying from an otherwise solid budgeting plan. The new year is a great time to start fresh, get those finances in check and begin to live within your means.

Set a Goal

Keeping a budget means more than tracking every penny we spend. While doing so is certainly a way to perceive the fundamentals of your spending, it shouldn’t be the overall goal. Point being that someone can know easily where all of their money is going and still be dealing with financial problems. The general goal for keeping a budget is to spend less than you make and putting that unspent money into more important expenditures, such as a savings account or retirement fund. If your goal for budgeting isn’t to meet this objective, you need to reevaluate what you want to get out of financial allocation.

Track Your Spending for a Week

For one week, try to diligently track your spending to figure out where your money is going. It can be easy to pull up to the drive-thru window, spending $30 each time, because you don’t think $30 is very much money. However, if you drive to your local fast food restaurant four or five times a week spending $30 per visit, you’re spending about $120 to $150 a week solely on junk fast food. Keep receipts for a week so that you don’t estimate expenditures when calculating costs. Keep a journal and jot down everything you spend money on during the week. This can include things like gas for the car, trips to the convenience store for your morning coffee or visits to the ATM to pull cash out for vending machines at work.

At the end of the week, look back on this list and determine where cuts can be made. If you find that you spend most of your money on weekend shopping for frivolous things, change your game plan for the weekends so that you can have fun without spending so much cash. If you’re spending a lot of your income on take-out, shop at a low-cost grocery store like Aldi’s and prepare your meals at home.

Commit to Change Your Behaviors

Just because you know where the problem lies does not mean you’re always going to be willing to change. Sure, you spend $100 a week on expensive coffees at the local cafe, but you love your morning brew, right? If you truly want to get a hold on your budget, you need to commit to change. It’s kind of like losing weight and dieting; it’s hard and people fall off the band wagon because it’s too difficult to make permanent changes that will have any real long-term effect. The best way to commit to a budgeting plan is to establish a strategy for changing your ways, saving money and avoiding those temptations.

If managing your finances is too much a burden to bear, you can either choose to work with a financial expert or download a tool to your mobile device or computer. There are plenty of free or low-cost apps that allow you to integrate your bank account into the app’s system, giving you a feel for where your money is going and tips for reducing debt. Financial experts, though expensive to hire, can establish a specific budgeting plan that is easy to follow and worth your while in terms of monetary gains.

Strategies for Managing and Getting Rid of Credit Card Debt

Strategies for Managing and Getting Rid of Credit Card Debt

The average amount of credit card debt for American households is over $15,000. Credit card providers take advantage of the more than 45 percent of families that have a credit card. Credit cards can be great when paying for things you need and not having the money to do so. They can also be used to build a line of credit, reducing interest rates on things like mortgages and loans. However, this payment method can become a problem when debt comes into play and when you’re consistently two steps behind and can never seem to catch up with yourself. This is when interest rates, late payment fees and collections calls become a literal nightmare in your life. There are a variety of things you can do to manage and even get rid of your credit card debt.

Work on Eliminating One Card at a Time

If you have multiple cards, it can seem like an effort in futility to get all of these cards paid off in full and become totally debt-free. It will give you instant gratification to work on one of those cards at a time, make higher payments on what you owe and get rid of the card for good. This does not mean, however, that you should ignore making the minimum payment on all of your other cards while targeting the one you want to get rid of.

Ask Creditors for a Lowered Interest Rate

Credit cards have notoriously high interest rates and this can be exasperated if you took out the card while dealing with a bad credit score. If things have changed over the years and your FICO score has gone up, consider asking your creditors for a lower interest rate. Lowering your interest rate will have an immediate effect on your credit card payments, reducing them to a more reasonable and affordable amount. Even if your score has not changed, you could still get a lower rate if you go through the proper financial department.

Transfer Balances

This is a relatively tricky tactic that many people use if they are facing debt problems and have multiple credit cards. Try transferring the balance on a higher interest card to a lower interest one, thus reducing your payments long-term. The reason this can be dangerous is because credit card companies will often change their rates after the initial introductory window. Your low interest card right now may sky rocket to a ridiculous rate after about 12 or 18 months when the introductory window becomes closed.

Take Out a Loan to Pay Off Credit Card Debt

So long as you have a decent credit score, you should be able to get approved for a personal loan at a much lower rate than any credit card would ever be able to provide to you. This is because the average interest rate attached to personal loans is 7.39 percent, whereas the average interest rate for credit cards is 18 percent. This huge variable could mean the difference between consolidating your debt and eliminating credit cards to being stuck in a never-ending cycle of minimum payments just to avoid collections.

Make More Than the Minimum Payment

When you put more money towards your credit card payment than just the minimum amount, you’re putting more of your funds towards the balance you actually owe. Many people find that making two minimum payments each month helps to get that amount paid off without too much interest accumulating during the process.

Stop Using Your Credit Card

Unless it is an absolute emergency, stop using your credit cards to pay for things. Buying new clothing, making purchases at the mall or paying for fast food using your card can critically increase your monthly payments. Put your credit cards away for good and only use them in an emergency situation, such as when a car breaks down, a home appliance stops working or a medical bill comes into play.

When you are able to work on your credit card debt to reduce or even eliminate it entirely, you can finally live debt-free. Credit card companies know how easy it is to fall into debt, and they take advantage of this by having high interest rates and a never-ending cycle of payments.

Student Loan Consolidation vs. Refinancing

Student Loan Consolidation vs. Refinancing

Student loans are a terrifying topic. College students who have them are worried about how they’ll pay them back following their college graduation, and those who are approaching their repayment date feel the same fears. Millions of Americans have already defaulted on the repayment of their student loans, and millions of Americans are worried they cannot afford to pay their loans. With more students than ever before graduating with an average student loan debt more than $30,000, it’s no wonder the subject is terrifying. Before repayment begins, former students are worried about refinancing or consolidating their student loans.

The simple truth is the information made available to students isn’t always the most accurate. It’s sometimes misleading and many are misinformed. It’s imperative you learn the differences between consolidating and refinancing student loans so you know which one is the best idea for you, and so you know how to adequately handle your own finances in the future.

Consolidation of Student Loans

Consolidation seems to be an easy subject to understand. You work very hard to ensure you’re able to take all your student loans and roll them into one loan and one payment. This eliminates the need to pay several interest rates, and it’s designed to save consumer’s money. Or is it? It might make the amount you pay each month lower and more affordable right now, but you’ll pay a lot longer. The purpose of student loan consolidation is to lower interest and payments by drastically extending the amount of time you have to pay off your loans. If you spend many additional years paying off your loans, you spend thousands of dollars more in student loan interest than you would by not consolidating.

Student loan consolidation is only useful if you can consolidate now and make additional payments to pay your loans off as quickly as possible. It’s also only beneficial to those who simply cannot afford to make the payments on their loans. It’s not a good idea for you to pay student loan interest longer, because it’s far more expensive.

Refinancing Student Loans

Refinancing is another idea for students, but it’s not available to all students. This is a method of lowering the amount of your loans by refinancing them into one loan. It’s available to only those with good enough credit to qualify, and it’s only available to those who graduated with an undergraduate or graduate degree. Anyone who left school early does not have the option to refinance student loans.

The good news about refinancing student loans is you can do this to both federal and private loans. This makes it much easier to get one payment. Whereas with consolidation you can consolidate both types of loans, you cannot consolidate them together. Federal loans are federally consolidated, and private loans are privately consolidated. It’s an interesting concept how they make all this work, and it’s something to consider when it’s time for you to get your finances in order. Refinancing is a better choice than consolidation because it does give you the opportunity to save money over the life of your loan repayment. The rates are typically much lower and much more affordable, and it’s easy to use this method as a way to save.

The other benefit of refinancing is you can do it as often as you like. If rates drop a year after you refinance, you can do it again. With consolidation, you get one option. Refinancing allows you to save money anytime the interest rates drops so long as your credit is strong enough to allow you to make that kind of savings a priority.

When it comes to saving money on student loans, your best option is to refinance. If you cannot afford to refinance or your credit is not strong enough for a refinance, it’s best to consolidate. There are other options for those in extreme financial need in the way of income-based repayment programs. You can handle this on your own, but you’ll need to look into your options to learn what’s best for you and how you can repay your loans in full.

How Debt Consolidation Programs Affect Your Credit

How Debt Consolidation Programs Affect Your Credit

As an individual starts amassing a significant amount of credit card and unsecured personal debts, they run an escalating risk of getting themselves into financial difficulties. Crossing over into financial trouble can best be described as reaching a point in time when the you start missing payments, spends too much time paying bills and/or start to feel the stress of impending financial disaster.

Facts About Credit Card Debt

Every quarter, the US Federal Reserve accumulates and reports information related to consumer and/or credit card debt. On it’s report dated September 30, 2016, Americans had accumulated credit card debt to the tune of $729 billion. That calculates out to $15,675 of credit card debt per household. On average, people are using 13.9% of their disposable income trying to service said debt. It’s should be easy to see how quickly credit card debt can become a significant problem for the average American.

Debt Consolidation as a Solution for Escalating Consumer Debt

Given the rather severe consequences related to debt settlement and bankruptcy, those potential solutions for escalating debt issues should be considered last resort options. While an individual still has a relatively decent credit score and rating, debt management and finding the best debt consolidation program they can remain as the best alternatives. Since debt management focuses on teaching the individual how to better manage their debt as is, debt consolidation becomes the best option that involves some form of debt relief.

A debt consolidation loan serves to consolidate a large number of credit card obligations into a single obligation. The potential benefits a person derives from securing a debt consolidation loan includes the elimination of administrative work to get bills paid, a lower effective interest rate and a potentially lower monthly cash outlay. It’s also possible that the individual will be able to pay off their debt sooner. When it comes to how one’s credit rating and score might be affected, the waters get a little murky.

How Debt Consolidation Affects Your Credit

If you are considering a debt consolidation loan as a viable alternative to your mounting debt issues, you need to be aware of how that might impact your credit rating. Initially, you might see a minor dip in your score simply because an installment loan company has made an inquiry from the credit agencies. If you seek a loan from several lenders, the impact could be a little more significant.

Once you secure a loan, things can get a little tricky. If your new lender requires you to shut down you credit cards all of a sudden, there will be a negative impact on your credit. You might show much lower debt-to-credit ratios, which do tend to drop your credit score in the near-term. There’s also the possibility you will become delinquent on some of your payments while the debt consolidation loan is being approved, which obviously will have a negative impact on your credit rating.

Another thing you will need to consider is that you are giving up temporary control of your debt situation while still maintaining 100% responsibility for what happens with it. During the process of getting your debt accumulated, there’s always the risk that the debt consolidation lender will miss a payment or send payments in late. While you had very little to no control over the process, it still impacts your score.

All of these considerations are addressed in the short-term. If you are able to better handle your debt load on a go forward basis, there’s a real possibility you can actually start increasing your credit score by making timely payments and decreasing the overall debt amount. The problem you need to avoid is using your new found debt freedom as the basis for getting new credit cards and starting the potential nightmares all over again.

Personal Responsibility

Before you move forward towards any type of debt solution, you would be well served to figure out how you allowed yourself to get into such a precarious position in the first place. A little debt counseling could go a long way towards teaching you how to budget your monies and keep from becoming over-reliant on consumer debt to help you maintain a particular lifestyle.

Searching For Online Traffic School For Your State?

We’ve all gotten our share of tickets and if you haven’t well then good for you. Jk 😉 Anyway if you’re like most of us and have gotten tickets then you’ll want to get the ticket and the points off your record for insurance purposes or for pride’s sake 🙂 Anyway here is a list of links telling you how to do traffic school for your specific state.

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