Interest Rates, Lowering Risk, and Debt Consolidation

Posted by on Dec 30, 2013 in Debt | 0 comments

Struggling to handle large amounts of credit card debt with high interest rates is a sad reality for many consumers throughout the country. There are a variety of ways to tackle debt problems, but finding the right solution for you can be confusing and tricky. For consumers with a significantly heavy debt load, consolidating credit card debt is truly a win-win solution for all parties involved. This is because of the role that interest rates play in determining risk for lenders.

The Problem Facing Lenders

The way credit lenders make a profit is by lending you money and charging interest until you pay the money back. While it may seem that rising interest rates are any easy way for lenders to make more money, the truth is that they are doing so as a means to cover the financial risk of lending that money. When someone defaults on their debt, they effectively take money from the lender, forcing the lender to raise interest rates on the rest of us.

But lenders know that high interest rates are a turn-off to customers. If they could find a way to lower interest rates while still maintaining profit margins, they would do so in a heartbeat.

The Role of Debt Consolidation Companies

This is where debt consolidation from Creditguard comes in. Consolidators provide a level of risk management for lenders by vetting individuals like you looking to lower their interest rates and pay off their debts more quickly. This, combined with the fact that debt consolidation companies do lots of business with credit card companies, allows them to be eligible for lower interest rates that most people can’t get on their own.

The consolidation company is staking its reputation on its customers’ ability to continue paying their debts, allowing them to get significantly lower rates from lenders. In effect, you are put into a separate, lower-risk bracket for your lender that also means lower interest rates.

What Lower Interest Rates Mean For You

Lower interest rates mean that more of your money goes toward paying off your loan each month. This means that your loans and balances get paid off more quickly, allowing you to save potentially thousands in interest payments over the course of your loan. While exact specifics vary from person to person, many have reported paying off their credit card debt decades faster than if they had continued making minimum payments. The same could be the case for you, so get on the track to debt relief today by looking into debt consolidation today.

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What is Consumer Credit Counseling?

Posted by on Nov 30, 2013 in Debt | 0 comments

What is Consumer Credit Counseling

Credit counseling services, like the ones you find from companies such as CreditGUARD, is a combination of money management planning and ongoing education about personal finance. You plan for the future while at the same time learn about how to make smart financial decisions and keep those plans going no matter what life throws your way.

Common skills you learn from a credit counseling session include: budgeting, analyzing credit offers, living within your means, saving money and identifying ways to cut spending. You will also learn how to make a financial plan and stick to it, which is harder than it seems.

Many credit counseling providers are nonprofit organizations, and they can also give you advice regarding local, state or federal assistance programs to help you save money on your budget each month. Depending on your income level, family size and expenses, this may be a vital part of getting yourself into a financially healthy state.

Finally, credit counselors will give you the positive encouragement you may need to get your finances back on track. Their lessons come with a fundamentally affirming message – even without their help 24/7, you can handle your finances yourself. This is very empowering, and combined with the practical knowledge of budgeting and personal finance, it can change your life.

Techniques for Saving Money

One common technique used by credit counselors is to provide you with a customized debt management plan involving debt consolidation. It is a conservative, low-risk approach to paying off your credit cards more quickly.

You will first consult with a debt consolidation agency. Many credit counseling groups also provide debt consolidation services, and they will work with you to determine how much you can afford to pay each month toward credit cards and other debt. They will negotiate with credit card companies and other lenders to lower your interest rates, waive fees and in so doing, lower your monthly payments. More importantly, however, the lowered interest rates will enable you to pay off your credit card balances much sooner than you would have otherwise.

The benefits to this approach include improving your credit score, reducing your debt loads and allowing you to move on with your life sooner.

Credit counseling is all about giving you practical advice that has a lasting impact on your entire life. If you’re ready to change your life and get out of debt, consider signing up today.

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Which Kind of Debt Help is Best for You?

Posted by on Nov 25, 2013 in Debt | 0 comments

Get Out of Debt

Getting help with debt can involve a variety of different methods for solving your financial issues. These can range from simply making a budget all the way to filing for bankruptcy. However, there is a middle ground that many consumers agree is best for them and their families known as debt consolidation.

Debt consolidation like from CreditGuard of America is the process of consolidating, or combining into one monthly payment, all of your debts. Many people are worried by the term “consolidation” because they think it means that they have to take out a new loan. Legitimate debt consolidation providers do not require you to take out any additional loans. After all, the point of debt help is to improve your credit, while a new loan could actually damage your credit score and have the opposite effect.

Instead of consolidating using a new loan, a debt consolidation service gives you a single account that goes towards paying off all your loans on a monthly basis. You pay a reduced-interest-rate payment to the consolidation provider that is usually less than or equal to the amount you currently pay to service all your unsecured debts, and the consolidator pays each one of those debts every month.

How Does It Work?

Debt consolidation relies on the main service that the provider offers, which is the backing of a large, trustworthy organization. Because they vouch for your ability to pay, you become eligible for lower interest rates and waived fees on your existing loans. The money saved goes straight into your pocket.

With a lower interest rate, you will be able to pay off your loan and see debt relief sooner rather than later. While each person’s experience varies, many have saved thousands of dollars and paid off their loan decades sooner than if they had simply made minimum payments each month. If you’re tired of having debts hang over your head, preventing you from feeling financially secure, the debt help you get from consolidation may be just what you’re looking for.

When simply making a budget doesn’t seem like an effective enough solution, debt consolidation is the choice made by hundreds of thousands of Americans across the country. Whether your debt is in the thousands or tens of thousands, consolidation can help you achieve the debt relief that you need.

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Debt Consolidation Services Can Make a Difference

Posted by on Oct 28, 2013 in Debt | 0 comments

Consolidating debt can significantly reduce interest rates on your unsecured loans such as credit cards, personal loans, medical bills and more. This could make a difference for you when it comes to your monthly payments as well as the amount of time you’ll spend in debt.

How to Get Started
The first step is finding a debt consolidation program that works for you. Many providers are non-profit organizations, and some can be found exclusively online. Most consolidation services also offer credit counseling programs to educate you about basic home finance skills such as budgeting and financial planning.

Once you’ve found a debt consolidation provider, the next step is sharing with them information about your debts, loans and creditors. You will sign up for an account that handles all of the payments on your debts each month. As long as you pay a monthly fee, the consolidation provider pays off your debts in regular, on-time installments.

How Debt Consolidation Helps You Save
You save money by using debt consolidation because the provider gets you reduced interest rates. The consolidator will call your creditors and negotiate with them to give you reduced rates, the savings of which they will then pass on to you in the form of reducing the term of your loan, so you spend less time paying it off. You then pay the debt consolidation service a monthly amount affordable for you.

Debt consolidation can also help you save in the long run by improving your credit score. Your debt-to-equity ratio will improve more quickly, and your credit report will show that you make regular payments every month on all your debts. An improved credit score may mean that you are eligible for better interest rates on mortgages, car loans or other major purchases in the future, which could save you thousands of dollars in the long run.

You don’t need your life to revolve around your debts. Get them paid off quickly with debt consolidation services and you can free up that part of your budget for savings or meaningful expenditures for yourself and your family.

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