Welcome to Debt Consolidation
Consolidate Debt Consolidation Loan Article
This is a selection made from among articles on Consolidate Debt Consolidation Loan. For a permanent link to this article, or to bookmark it for future reading, click here.
Debt Handling - Student Loans
from:Few areas of credit are as complicated today as that of student loans. There are many types, with lots of terms, complicated conditions, and fine print. But studying those options is important in order to make the best long-term choice for education funding.
One of the most common options is a Stafford loan. Hundreds of thousands of students have used these as a means of partially financing their education and they do have some positive aspects.
The Stafford loan has no pre-payment penalty - you can pay off any remaining balance any time. There's no credit check performed, so almost everyone will qualify. There are no payments required while the student is taking courses, provided they maintain at least a half-time status. And, after leaving school there's a six-month grace period during which no payments are required.
But there are limits on the amount that can be borrowed in one year. Also, though Stafford rates often look attractive relative to ordinary loans, they contain additional charges that can make the cost of borrowing higher. Up to 3% in fees (including a 2% Federal 'origination fee' and a 1% Federal default fee) can be applied.
Further, there are plans in which the repayment is made over a 10-year period. That may sound attractive given the relatively low monthly payment it typically entails ($116 per month in the following example). But the amount of interest accumulated on a 7% loan of $10,000 (and most students borrow more) over 10 years is: $3,933. That's over 39% of the original amount paid in interest. Definitely, not cheap money.
Though it may involve beginning repayment immediately, many parents attempting to help finance their son or daughter's education will find it worthwhile to investigate other alternatives. Even students should make an effort to look for other routes, including a combination of grants, scholarships, and conventional loans repaid with money earned from part-time work.
Savings plans, of course, are one of the best options to investigate and the sooner they're started in the child's life the better. The risk with all such plans is that inflation, financial crises, and other unpredictable elements can cause that investment to be worth very little by the time it is needed.
Investigate options - tax-free municipal bonds, inflation-adjusted hedge funds, and others, for example - that can help offset those effects.
Regrettably, there is no easy way to finance today's high cost of education. But doing the necessary homework to investigate all options will save all concerned time and headache in the long run.
Consolidate Debt Consolidation Loan News
How to make the best of a debt consolidation loan - MyFinances.co.uk
When you start finding it difficult to keep up with your monthly bills because you have so many different accounts to pay each month, it may be a good idea to consider a debt consolidation loan. Debt consolidation loans help you manage your debt ...
Read more...How to escape the debt hole - Dallas Morning News
The holidays are over, but for many consumers, the headaches are just beginning as the bills start to flow in. Tackle them now, because many experts say 2009 will be a tough year, especially for those who are debt-laden. If you find yourself deep in ...
Read more...Credit Card Companies Willing to Deal Over Debt - Times Daily
Hard times are usually good times for debt collectors, who make their money morning and night with the incessant ring of a phone. But in this recession, perhaps the deepest in decades, the unthinkable is happening: collectors, who usually do the ...
Read more...Better 10 cents than none - The Chronicle Herald
Debt collectors are better known for merciless persistence than a willingness to talk things over. But as job losses and personal bankruptcies mount, credit card companies and the collection agencies they employ are starting to accept dimes, if not ...
Read more...Borrowers facing bleaker prospects of credit - MyFinances.co.uk
Recent judders on the financial markets have not made it a great time for borrowers. Even though the Bank of England’s base rate has remained fixed at 5.75 per cent since July after previous frequent rises, the cost of borrowing has continued to ...
Read more...