Consoldating college loans
So instead of having to send a separate payment to each creditor or collector every month, you’d make just one.This can help eliminate missed or late payments and ensure that you’re addressing all your debts.You’re in deep with credit cards, student loan debt and car loans.Minimum monthly payments aren’t doing the trick to help nix your debt.Something has to change, and you’re considering debt consolidation because of the allure of one easy payment and the promise of lower interest rates.The truth is debt consolidation loans and debt settlement companies don’t help you slay mammoth amounts of debt.
When you consolidate your debts or work with a debt settlement company, you’ll only treat the symptoms of your money problems and never get to the core of why you have issues in the first place.
Their behavior hasn’t changed, so it’s extremely likely they will go right back into debt. The debt includes a two-year loan for ,000 at 12%, and a four-year loan for ,000 at 10%.
Your monthly payment on the first loan is 7, and the payment on the second is 3. You consult a company that promises to lower your payment to 0 per month and your interest rate to 9% by negotiating with your creditors and rolling the two loans together into one. Who wouldn’t want to pay 0 less per month in payments?
C., said this topic comes up “pretty frequently” with her clients.
“Most of my clients have credit card debt,” she said.
Two words for you: , although often the terms are used interchangeably.