Essentially, refinancing means that you will take out a new loan to pay off the existing loan(s). One you’ve refinanced the two loans will be combined into one loan with a lower monthly payment. Typically, refinancing allows you to choose better interest rates and repayment terms, but in most cases you do need to have very good credit (and a good track record when it comes to making monthly payments) in order to refinance.
You can refinance both federal and private loans, but refinancing a federal loan means that you will give up certain rights that you probably don’t want to forfeit.
When you consolidate a loan, you don’t take out a new loan. Instead, you combine various loans into a single loan. The benefit of consolidation is that it’s easier to make one single payment instead of making multiple payments for multiple loans. However, there are drawbacks to consolidation. While a payment might be lowered if you consolidate a loan, there’s a good chance that the interest rate will be much higher — this is something that you’ll want to be very careful about.
It doesn’t make any
Obviously, a lender’s pre-approval letter carries more weight with a seller than a pre-qualification letter because it is proof of your buying power on paper. Being pre-approved gives you an advantage when you’re among several buyers pursuing a property.
If at all possible, consider paying off any high-interest loans before applying for a mortgage. The more debts—like car loans or credit card balances—that appear on your mortgage application, the smaller the loan amount the lender will be willing to offer.
In the USA, from what I have seen and read, the Consolidated Credit Counseling Service seems to be a useful organisation. The CCCS aims to help families end financial crisis by offering guidance and money management education.
Not being an American or having debts in the US, I have no firsthand experience of their work. However, they do claim that their size offers bargaining power with lenders which they use to have fees and penalties waived on your behalf. On it;s own, that could be a big reason to speak to them.
As I said, I’m no expert, but they look like a worthwhile group. I’m sure you could do much worse than to speak to them.
In the UK, the main debt management non profit organisation isn’t actually a specialist debt consultancy. Instead they offer free legal guidance and a number of other services.
The Citizens Advice Bureau is manned by volunteers across the UK. These volunteers are sometimes qualified specialists and sometimes not.
Several years ago, before I left the UK, I helped a friend for a few evenings. Like me, he worked in the financial advice / mortgage industry. HeRead More
If you are among the elite few who have managed your credit cards and other loans responsibly the bank will reward you with added perks such as airline points cards or low interest credit cards. There are many card offers that will reward your good financial habits with low or no annual fees, some great reward points as well as introductory rates of 0% APR with ongoing low interest rates. Typically the interest free period is 6 months but in some cases will be awarded to you for a full year. Since your credit is in excellent standing the interest free period might not be of concern to you as you are probably the type that pays your credit card balance in full every month. If this is the case you should make your credit card comparisons based upon the rewards and extra perks offered by the bank – if you are paying your balance in full a 0% APR is really of no value to you.
The good credit range is where the majority of people are with their personal finances. You will stillRead More
A Payday Loan is a helpful little tool that will provide you with a bit of extra cash when you need it. A Payday Loan is a fiscal sum intended to help the average working adult make ends meet. Payday Loans or paycheck advancements, as they are sometimes referred to, are often repaid when the borrower receives his or her next paycheck. These loans are cashed in amounts ranging from $100 to $1,500.
If you’re interested in a Payday Loan all you have to do is visit a provider online and fill out an application. A detailed background check, credit check and employment check will be conducted. You will be contacted within a six to eight business days with your results. There is a different way to go about doing this though.
Are you worried about your credit score? Concerned your credit check won’t go over well? Maybe a No Teletrack Payday Loan is for you!
Teletrack is an organization that provides fiscal information to financial companies in regards to individuals wishing to take out a loan. This information may include bad credit, credit history, outstanding checks and bankruptcy. If you’re worried you may beRead More
Plan A: A high school senior found her right-fit school, that is, it was the right size, the right lattes, the right ambiance, the right major, the right geography, the right mascot, and even a right financial aid package that left her struggling parents with an out-of-pocket expense of $14,500 at a $45,000-a-year school.
I say “struggling” parents because $14,500 was still hard to materialize, but they said they’d find a way, whatever that meant. But out of nowhere, a wrong-fit college sent the student a free application, and on a whim the student submitted it. The college came back with a student financial aid package that left the parents with a total out-of-pocket cost of $2,900.
A no-brainer, right? It’s now an easy decision to attend this college.
After the first semester, the student announces that she really doesn’t like her college and wants to be a student transfer. The parents are in a panic: the remaining three years of grants for college, worth a total of $75,000, are down the tubes. Ouch!
Almost spasmodically, the student applies to six private colleges in California, which are in the same league as the schoolRead More
Many people don’t know but ‘personal loans’ is the generic term for all loan types. All loans fall under either one or the other personal loans category. Personal loans fundamentally are of two types – secured and unsecured loans.
Secured personal loans will like a security to be attached to them. The security usually is in the form of home but alternative collateral are also accepted. The loan amount with secured personal loans is usually more. You can borrow more at lower interest rates. The obvious drawback that everybody encounters is the loss of property if they fail to make repayments.
Unsecured loans do not require attaching any collateral. They are meant for everybody who cannot provide collateral, either by choice or compulsion. They take lesser time in being approved but are much favourable for lesser loan amounts. Everybody applying for unsecured personal loans will get comparatively higher interest rates. This is because no security is supplied for them.
Personal loans amount that can be approved extend from £5,000-£75,000. Everybody will be approved for have different amount. As secured personal loans, borrowers can get up to 125% of propertyRead More
If you are trying to collect a small or medium sized debt, using collection agencies that charge a flat fee are probably your best option – collection agencies that charge a flat fee work just as hard to collect a small debt as they do to collect a large debt.
If you have just a few large unpaid receivables, working with collection agencies that charge a percent of the total debt collected is a wise choice. (usually 25 to 50 percent).
The third option, selling your uncollected receivables at a discount to certain collection agencies is advisable only if you have a very large amount of debt – usually $1 million or more. The selling price is typically a minuscule 2 to 8 cents on the dollar.
Most collection agencies use one of three tactics to collect debt:
Typically, collection agencies begin the collection process by sending a series of notification letters, often called demand letters. The final notification letter generally warns the debtRead More
First it is absolutely necessary to find out about the lending institution and how long they have been in business. It is wise to begin with the better known lenders. You will need to consider the fees and terms of this loan and just compare the rates among several lenders. The fees charged for these loans is usually a percentage of the amount you borrow, which is why you need to get the best one you can find. This fee has to by law be disclosed to you ahead of time. If a lender isn`t up front about either the fees or the terms, rule them out right away. This applies to whether you are looking online or in person. Before you sign or agree to anything, find out if the interest rate would change should you want to or be able to pay the loan back early. Some firms offer rebates for paying the loan back before the due date. Another important fact to find out about are any additional fees should you require an extension for the loan. The typical term for payday loans ranges from 5 to 30 days and usually coincides with your nextRead More
Your credit score is a number that reflects on the likelihood at which you will pay back a loan. Scores range from 350 (high risk) to 950 (low risk). Credit scores do not take into consideration your income, how much savings you have or demographic factors such as gender, race or nationality. Your credit score is affected by your current debt level, your past delinquencies, your credit history and how many times your credit report is pulled up by various agencies. Your score considers both positive and negative information in your credit report. For instance, recorded late payments will lower your credit score while a good track record of making payments on time will raise your credit score. Timely payment of your bills is important to ensure you maintain a good credit score. The amount of balance you have left on your credit card, how many credit card accounts you hold and your use of revolving credit also affect your credit score to a great extent.
Your credit score and credit report is formed on the basis of your credit history and you need to have at least one account which has been open or updated inRead More
Contact Your Current Provider. Chances are the interest rate with your current credit card provider has been inching up for the better part of the past year. Whereas previously you could have had a 5% rate, the card may now be up to 8, 9, or even 10%. What can you do? Contact your credit card provider and ask for a lower rate. They can tell you no, at the risk of you going elsewhere, or give you a fixed lower rate. If your provider refuses to budge, see if they would consider a lower rate for a certain period of time, let’s say for six or twelve months. The added savings of the temporary lower rate can be beneficial especially if you have a big purchase coming up that you plan on paying off within 6 to 12 months.
Shop Around. Like most Americans, you probably are receiving solicitations in the mail for credit cards. If that is the case, find the plan that works the best for you and apply. Usually, a low introductory rate is offered as well as balance transfer options. If the card has no annual fees and no additional fees areRead More
· If the student dies (death certificate required).
· If the student becomes permanently disabled.
In the case of a loan discharge, the student involved must be permanently and completely disabled. This is also defined as being not able to work and earn an income due to an illness/injury that will most likely end in death.
It will pay you to check the laws in your state as these rules are continually being updated.
In some cases, only a conditional cancellation may be issued, this may last up to three years from when the student became disabled.
Another thing to consider is that if the conditions of the loan are not met, then the loan will revert back to its original state.
In either case, a doctor’s certification will also be required that will state the nature and details of the students illness/injury.
It may be possible to receive a discharge if the educational institution actually closes.
It may be possible to also obtain a discharge if the loan was approved in spite of the fact that the student did notRead More
First and foremost you must understand that using your credit card after you’ve received this notification results in your automatic “agreement” to the new terms in the notice. To prevent these new terms from affecting your account you must stop using that credit card immediately or by the date given in the notification statement.
The most common modifications to credit card agreements include new APR’s (annual percentage rates), new fees and/or changes to existing fees, or a change to the grace period on your account. The grace period is the number of days during which any credit used for purchases may be repaid in full without incurring a finance charge.
Not knowing or not keeping track of the dollar amount limit on your card is another trap you should avoid. Credit card issuers will allow you to charge a small amount over the limit set on your account. However, don’t be surprised when you get hit with an “over limit fee”, usually around $35.00 or higher, on your next statement. Also, be prepared for your APR to be increased if you go over your credit limit.
You’ll also trigger an increase to your interest rateRead More
The first one out of the some dirty tricks credit card companies play is also the worst of them: not posting your payment the day it was received. This is the oldest known trick: the company receives your payment in time but it doesn’t process it immediately; this delay will bring to the company a late payment fee. This is often due to legitimate reasons, but the policies of many credit card companies support a processing time that is not beneficial to you. A second trick is to make you pay late by changing the due date for your credit card payment. For being late the company will charge again a late payment fee and if the situation repeats for few months in a row they can legally increase your interest rate. The third trick played by the credit card companies is a ridiculous one: you can be charged a penalty fee for not using your credit card a certain period of time. As unbelievable as it might seem, this is a new tactic of the credit card companies to take your money. Another two tricks used are in connection with the client’s peace of mind. Both ofRead More
In the modern world of ecommerce, it is essential that all respectable businesses honor your right to privacy:
The storefront of the onlineRead More