pay debt – Canal Voyagers http://canalvoyagers.com/ Sat, 26 Mar 2022 17:03:23 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://canalvoyagers.com/wp-content/uploads/2021/09/icon-6-83x150.png pay debt – Canal Voyagers http://canalvoyagers.com/ 32 32 Will a debt consolidation loan affect my credit rating? https://canalvoyagers.com/will-a-debt-consolidation-loan-affect-my-credit-rating/ Tue, 08 Mar 2022 18:09:05 +0000 https://canalvoyagers.com/will-a-debt-consolidation-loan-affect-my-credit-rating/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. (The Credible Money Coach explains the possible […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

(The Credible Money Coach explains the possible credit impact of a debt consolidation loan.)

Dear Credible Money Coach,

Is it true that when you take out a debt consolidation loan, it hurts your credit? —Twila

Hello Twila and thank you for your question. Debt consolidation affects your credit differently depending on how you structure it and manage loan repayments. This can be a smart way to manage multiple high interest debts without hurting your finances.

If you’re considering a personal loan for debt consolidation, compare rates from multiple lenders to get the best deal. Credible, it’s easy to view your prequalified personal loan rates in minutes.

Why do people consolidate their debts?

When you consolidate debt, you open a new credit account, such as a personal loan, credit card, or home equity loan, to repay several existing debts. This leaves you with one payment instead of multiple accounts to manage.

If you have good credit, you may be able to get an interest rate that’s lower than the combined effective rate you’re paying on multiple debts. This saves money in the long run.

Ways to Consolidate Debt

There are several options for consolidating debt, including:

Each of these options has advantages and disadvantages. For example, personal loan interest rates are generally lower than credit card rates. But if you continue to incur credit card charges, you could go into more debt.

Doing a 0% balance transfer could save you interest for 12 months or more. But if you don’t repay the entire balance before the end of the promotional period, the interest rate could increase significantly.

If you sign up for a debt management plan with a credit counselor, they can negotiate with your creditors to pay less than you owe, lower your interest rate, or extend your repayment period. But if you can’t repay a debt management plan as agreed, your credit may suffer.

The risks of a loan buy-back

A debt consolidation loan can lower your credit scores in the short term. This is because new credit applications cause your scores to drop. And if you use the loan to pay off a credit card and then close it, you reduce your total available credit, which leads to lower credit scores. (It’s best to keep a paid credit card open so you have more credit available in your name.)

However, if you make your new loan payments on time each month, your credit should recover fairly quickly from the slight hit it took when you opened the loan.

Should you get a debt consolidation loan?

A debt consolidation loan is not for everyone. I advise you to think twice before emptying a retirement account to pay off debt or putting your home at risk with a home equity loan or line of credit.

And if bad spending habits are causing your debt, working with a qualified credit counselor to improve your financial habits may be more helpful than lowering your interest rate with a debt consolidation loan.

If you decide a personal loan is right for you, Credible can help. compare personal loan rates from multiple lenders without hurting your credit.

Ready to know more? Check out these articles…

Need Credible® advice for a money-related question? Email our credible financial coaches at moneyexpert@credible.com. A Money Coach could answer your question in a future column.

This article is intended for general information and entertainment purposes. Use of this site does not create a professional-client relationship. Any information found on or derived from this website should not replace and should not be taken as legal, tax, real estate, financial, risk management or other professional advice. If you require such advice, please consult a licensed or competent professional before taking any action.

______

About the Author: Laura Adams is a personal finance and small business expert, award-winning author and host of silver girl, a weekly audio podcast and top notch blog. She is frequently quoted in the national media and millions of readers and listeners benefit from her practical financial advice. Laura’s mission is to empower consumers to live richer lives through her work as a speaker, spokesperson and advocate. She earned an MBA from the University of Florida and lives in Vero Beach, Florida. Follow her on LauraDAdams.com, instagram, Facebook, Twitterand LinkedIn.

]]>
Alternatives to Debt Consolidation Loans https://canalvoyagers.com/alternatives-to-debt-consolidation-loans/ Fri, 25 Feb 2022 08:00:00 +0000 https://canalvoyagers.com/alternatives-to-debt-consolidation-loans/ Debt consolidation loans are personal loans used to merge high interest debts such as credit cards, payday loans or other bills into a brand new fixed rate loan. Once you have received the funds for this loan, they are used to pay off your other debts. If you pay off the loan on time, get […]]]>

Debt consolidation loans are personal loans used to merge high interest debts such as credit cards, payday loans or other bills into a brand new fixed rate loan. Once you have received the funds for this loan, they are used to pay off your other debts. If you pay off the loan on time, get a lower interest rate, and don’t incur any additional debt that you can’t handle, you might be able to pay off your debt faster and save a ton of money on interest.

However, while using these loans is a good way to consolidate payments and hopefully lower the interest rate on your debt, there are several debt consolidation loan alternatives for people who don’t. may not qualify for a debt consolidation loan or those looking for lower interest rates. .

Debt Consolidation Loan Alternatives

A debt consolidation loan is not for everyone. Since debt consolidation loans are unsecured personal loans, lenders may have stricter eligibility criteria or the loans may not be large enough for the types of debts you are trying to consolidate. Here are some debt consolidation loan alternatives:

  1. Balance Transfer Credit Card: A balance transfer card allows you to transfer debt from other credit cards – usually credit cards from other companies only – or use a balance transfer check to combine other forms of debt into one 0% interest rate. This promotional low rate period typically lasts 12-21 months, and a good to excellent credit rating is required for approval. Once the introductory period is over, you will be responsible for paying the card’s standard interest rate on the remaining balance. Additionally, most cards will charge you a balance transfer fee on the total amount you transfer, usually 2-5%.
  2. Home equity loan or HELOC: Home equity loans and home equity lines of credit (HELOCs) allow you to borrow against the equity in your home. While a home loan has fixed monthly payments at a fixed interest rate, a HELOC works like a credit card and has a variable interest rate. Both can be used to consolidate high-interest debt, but you risk losing your home if you can’t pay them off. Also, both require you to have some equity in your home. Compared to debt consolidation loans, home equity loans and HELOCs often have longer repayment periods, larger loan amounts, and lower interest rates.
  3. Refinancing by collection: A cash-out refinance replaces your existing mortgage with a brand new mortgage for more than your current outstanding balance. You can withdraw the difference between the two balances and use it to improve your home or consolidate your debts. As with using a home equity loan or HELOC, you risk losing your home if you cannot repay your new loan.
  4. Debt settlement: Debt settlement takes place when you negotiate with your lender to pay less than what is owed to settle the debt. You can negotiate with the debtor yourself or pay a fee to a debt settlement company or lawyer to negotiate on your behalf. Even if you, a lawyer, or a business successfully negotiate a settlement, your credit score can take a hit.
  5. Bankruptcy: Filing for bankruptcy involves going to federal court to have your debts canceled or reorganized to give you time to pay them off. While you can pay off your medical debt, personal loans, and credit card debt in the event of bankruptcy, paying off your student loans and tax debt is incredibly difficult. Before choosing this alternative, keep in mind that your credit score will take a hit; it may take years for him to recover.

The bottom line

While using a debt consolidation loan to merge your high-interest debts might make financial sense if you can get a lower interest rate, it’s not your only option. In some cases, choosing an alternate route may be a better choice. For example, you might be able to get a lower rate by taking out a home equity loan, since it’s a secured loan backed against your home.

However, it is also important to know the risks involved in choosing such an alternative. Shop around the different options and compare interest rates, repayment terms, and the trade-offs you’ll make with each before continuing.

Learn more:

]]>
Affordable debt consolidation https://canalvoyagers.com/affordable-debt-consolidation/ Wed, 16 Feb 2022 23:09:09 +0000 https://canalvoyagers.com/affordable-debt-consolidation/ Credit card spending has increased in the United States due to financial constraints caused by COVID-19. Texas leads the pack behind California for states with the highest increase in credit card debt, according to a Sept. 21 study by WalletHub. And low mortgage interest rates haven’t translated into low credit card interest rates. Surprisingly, the […]]]>

Credit card spending has increased in the United States due to financial constraints caused by COVID-19. Texas leads the pack behind California for states with the highest increase in credit card debt, according to a Sept. 21 study by WalletHub. And low mortgage interest rates haven’t translated into low credit card interest rates. Surprisingly, the median interest rate on all credit cards in the Investopedia Card Database for October 2021 is 19.49%.

These high interest rates can create financial hardship for people who have significant credit card debt. High payments can make it impossible to cover rising living expenses. Debtors who have fallen behind face relentless collection calls and sometimes debt collection lawsuits. Fortunately, there are solutions to this crippling debt. Let’s look at the most common options.

Secured or unsecured debt consolidation loans:

Unsecured debt consolidation loans involve taking out a low interest loan to pay off higher interest credit card debt. Since these loans have no collateral that the lender can seize or repossess, they require high credit scores and excellent debt-to-income ratios to reduce their risk. Most secured debt consolidation loans use home equity as collateral. In Texas, your home must be maintained at less than 80% when using equity, so not all of the equity is available through a refinance or 2nd mortgage . However, if you have sufficient equity, the credit score requirements are lower than for an unsecured loan because your home is collateral.

Debt management plan with credit counseling:

A credit counseling program can offer some of the benefits of a debt consolidation loan, including the need to make one monthly payment and lower interest rates. There is no need to take out a new loan since the rates on your existing debts are reduced, so good credit scores are not required, but you must afford the monthly payments. However, this is considered a “hard” program, so if you want to take on more debt (and have the ability to pay for it), then this is not a program you should consider. Based on your current interest

rate, the monthly payment is likely to be lower than your combined minimum payments, and these programs are designed to pay off the debt in about five years or less.

Debt Negotiation for Debt Relief

Debt negotiation, also known as debt settlement, is another common way to resolve crippling credit card debt and personal loans. This is a hardship program, and similar to credit counseling, it is not an option if you plan to apply for more debt before completing the program. These programs are usually structured to last around 24 to 48 months, depending on your monthly budget and negotiated amounts. Monthly program payments can cost less than half of minimum payments. A reputable program will not charge trading fees until a debt is settled.

The savings are the result of not making monthly payments to your creditors. Instead, money is deposited in an FDIC-insured special purpose account while debts are negotiated and settled for less than the total balances, one at a time. The program is ideal for those who are about to fall behind or those who have already fallen behind, as failure to make minimum payments will negatively affect a credit score. However, it can be a great alternative to bankruptcy, and since the program can be completed much faster than most other options, you can also start rebuilding your credit score quickly. All debt negotiation programs are not created equal. Debt Redemption trading fees are often 20-40% lower than foreign firms. They also have special resources to help Texans who have been sued by a creditor or debt collector.

Chapter 7 or 13 Bankruptcy:

Bankruptcy may be the shortest and cheapest way to settle a debt if you can qualify for Chapter 7. Many people with large incomes or non-exempt assets have issues that prevent Chapter 7 filing and Chapter 13 might be the only form of bankruptcy available. In some cases Chapter 13 will be more expensive than a debt negotiation program, and in other cases it will be less expensive. If you are considering this option, consultation with a Texas bankruptcy attorney is necessary. Debt Buyback does not provide legal advice.

Get Free Debt Relief Consolidation

Affordable Debt Consolidation in San Antonio, TX also has several offices in the Lone Star State to help Texans struggling with crippling debt. If you’re considering debt consolidation loans, credit counseling, or debt settlement, a Texas Debt Specialist can provide you with a free, no-obligation phone or office consultation. We can also refer to Texas bankruptcy attorneys when needed. Learn about your options for resolving your debt today so you can start living your debt-free life. Call 800-816-1003 or visit https://affordabledebtconsolidation.com

For more coastal life, visit our website or follow our Facebook and Instagram.

]]>
How to Choose a Debt Consolidation Loan Lender https://canalvoyagers.com/how-to-choose-a-debt-consolidation-loan-lender/ Wed, 16 Feb 2022 13:11:34 +0000 https://canalvoyagers.com/how-to-choose-a-debt-consolidation-loan-lender/ The most popular debt that people often consolidate is credit card debt, usually because it has very high interest rates. However, people can also consolidate other types of debt, such as payday loans, personal loans, and medical bills, so how do you settle with a debt consolidation loan lender? Is it a good idea to […]]]>

The most popular debt that people often consolidate is credit card debt, usually because it has very high interest rates. However, people can also consolidate other types of debt, such as payday loans, personal loans, and medical bills, so how do you settle with a debt consolidation loan lender?

Is it a good idea to consolidate your debts?

A debt consolidation loan is a personal loan, in most cases not everyone has the creditworthiness to qualify for such a loan. First, you need to check if you qualify for an affordable personal loan. Second, depending on the amount of the loan and the company (lender), a debt consolidation loan can be expensive in the long run. For example, taking out a debt consolidation loan allows you to repay it to a single lender. You may be making large payments over a long period of time, which may require you to pay in the long run.

Finally, if you are having difficulty repaying your current debts, will you be able to pay the debt consolidation loan? You need to look at your income and see how much money you have available and whether you can comfortably afford the debt consolidation loan repayments.

When is a debt consolidation loan a good idea?

A debt consolidation the loan is a good idea if:

  • You have a good cash who can pay the monthly debt payments
  • Your monthly debt payments (including mortgage or rent) do not exceed 50% of your monthly gross income
  • You have sufficient credit to qualify for a low interest debt consolidation loan or a 0% credit card
  • You can pay off your debt consolidation loan in five years or less

If you think debt might be another challenge, the best thing to do is talk to a financial adviser before doing anything.

How to choose a debt consolidation loan lender?

Since debt consolidation is not free, you need a debt consolidation loan that fits your budget and helps you achieve your financial goal of eliminating debt. Before giving you a loan, many lenders often pre-qualify you without investigating your credit. Information from prequalifications can give you an idea of ​​the loan amount, rate, and term you might qualify for if your application is approved.

To choose a loan consolidation lender, you can use the pre-qualification information to compare your options and decide which lender is right for you based on different factors such as:

  • Loan cost: The cost of the loan, including organization and other fees, is a determining factor in the qualification of your loan. High fees can outweigh the benefits of getting a consolidation loan.
  • Annual percentage rates (APR): Lenders use your credit score and other financial factors to determine your APR or the interest you pay per month.
  • Characteristics of the lender: Research the lender and learn about their ratings, credit monitoring, hardship programs and customer service. Find out if you can trust them and whether or not you will be comfortable doing business with them.

Endnote

If you decide to consolidate your debts with a debt consolidation loan, it is important to take the time to research your options. Make sure that the loan will meet your budget requirements and help eliminate debt. Don’t settle for a high APR that could affect your overall financial goals.

]]>
6 reasons why a personal loan is ideal for debt consolidation https://canalvoyagers.com/6-reasons-why-a-personal-loan-is-ideal-for-debt-consolidation/ Thu, 10 Feb 2022 11:32:42 +0000 https://canalvoyagers.com/6-reasons-why-a-personal-loan-is-ideal-for-debt-consolidation/ Image source: Getty Images The right personal loan could make your debt much cheaper and easier to pay off. Key points Personal loans allow you to borrow money for almost any reason. They often come with affordable interest rates. Personal loans can be used to consolidate debts. This means that you take out a new […]]]>

Image source: Getty Images

The right personal loan could make your debt much cheaper and easier to pay off.


Key points

  • Personal loans allow you to borrow money for almost any reason.
  • They often come with affordable interest rates.

Personal loans can be used to consolidate debts. This means that you take out a new personal loan and use it to pay off several existing creditors. You can use a personal loan to pay off credit cards, medical debts, other personal loans, etc.

But why would you want to do that? Here are six main reasons why a personal loan can be the ideal tool to use to consolidate your debts.

1. You can use the loan proceeds for anything you want

Most personal loan providers offer great flexibility in how the borrowed money is used. They may not even ask you what you will do with the loan proceeds.

Therefore, after borrowing, you are free to pay off just about any debt you want, from credit cards to medical debt to other personal loans.

2. Personal loans often offer competitive interest rates

The interest rate on a personal loan is often much lower than the rates for other common types of debt, such as credit card debt.

If you can lower the interest rate on your borrowed funds, repayment should be less expensive over time because you won’t have to give the lender so much money to have the privilege of accessing credit.

3. Many personal loans allow you to borrow a large sum

It is often possible to borrow a large sum of money when taking out a personal loan – sometimes as much as $50,000 or $100,000, depending on your income and other financial qualifications.

Since you can borrow a lot, you should hopefully be able to use your personal loan proceeds to pay off most or all of your outstanding debt. This will simplify the debt consolidation process since you won’t have to choose which debts to pay off with your consolidation loan, and you won’t end up with multiple creditors when you’ve completed the process.

4. You can lock in your interest rate with a personal loan

Many lenders offer you the option of choosing a fixed rate personal loan. If you refinance variable rate debt into a fixed rate loan, you won’t have to worry about rising rates and your debt going up.

You’ll have absolute certainty about what you’ll pay each month because your monthly payments and borrowing costs will never change.

5. Personal loans come with fixed repayment schedules

When you apply for a personal loan, you decide on a fixed term for the repayment of your personal loan, for example three years or five years. This time frame will not change once you sign your loan agreement and commit to borrowing.

As a result, you’ll know exactly when you’ll complete your debt repayment plan and be free of any debts you’ve consolidated.

6. You don’t usually put your assets at risk when you take out a personal loan

Typically, you will use an unsecured personal loan when consolidating debt. This means you don’t need to use any assets as collateral, unlike a home equity loan, where your home secures the loan.

Each of these benefits distinguishes personal loans from other debt consolidation options, such as home equity loans or balance transfers. If you’re hoping to consolidate your debt this year, a personal loan should be considered when deciding what new credit to take out to pay off your existing lenders.

The Ascent’s Best Personal Loans for 2022

The Ascent team has scoured the market to bring you a shortlist of the best personal loan providers. Whether you’re looking to pay off debt faster by lowering your interest rate or need extra money to make a big purchase, these top picks can help you reach your financial goals. Click here for the full rundown of The Ascent’s top picks.

]]>
Using a Home Equity Loan for Debt Consolidation – Forbes Advisor https://canalvoyagers.com/using-a-home-equity-loan-for-debt-consolidation-forbes-advisor/ Fri, 04 Feb 2022 17:43:13 +0000 https://canalvoyagers.com/using-a-home-equity-loan-for-debt-consolidation-forbes-advisor/ Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors. As a homeowner, you have additional financial responsibility, including mortgage, property taxes, home maintenance, and other expenses. You may also be carrying high-interest debt, such as credit cards. Fortunately, there are ways […]]]>

Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

As a homeowner, you have additional financial responsibility, including mortgage, property taxes, home maintenance, and other expenses. You may also be carrying high-interest debt, such as credit cards. Fortunately, there are ways to pay off your debt faster with help from your home.

A home equity loan allows you to use the equity in your home to consolidate your debts at a lower interest rate. However, this strategy has some drawbacks. Here’s what you need to know.

How a Home Equity Loan Consolidates Debt

Home equity is the difference between what you owe on your home (the mortgage balance) and its current value, usually based on the current appraised value. You cannot get a home equity loan unless you have some equity in your home; lenders usually look for at least 15% equity in order to lend them to you.

The more you pay to your lender, the more your capital increases. Another way equity increases is when the overall real estate market is healthy and home values ​​(or sale prices) in your area increase. A home equity loan allows you to borrow against that equity in the form of a lump sum installment loan.

This money can be used for a variety of purposes, such as renovating your home, paying for college, covering emergency expenses, and consolidating debt.

Home equity loans are a good debt consolidation tool because the interest rates are quite low compared to other forms of debt. Once your home equity loan is closed and you receive your funds, you can use the money to pay off your existing debt and then make a one-time payment to your lender until the loan is paid off, usually on a period of five to 20 years.

Advantages and Disadvantages of Using a Home Equity Loan to Consolidate Debt

When deciding whether or not to use a home equity loan to consolidate your debt, you should first consider some important pros and cons.

Advantages

  • Lower interest rates: If you’re looking for ways to borrow money or consolidate debt, a home equity loan offers some of the lowest rates available. Currently, their annual percentage rate (APR) is around 4% to 6%. Personal loans and credit cards, on the other hand, often have double-digit interest rates.
  • Easy access to financing: Although there are certain income and debt balance requirements that you must meet, a home equity loan is generally easier to obtain than other types of debt. This is partly because your property serves as collateral, so there is less risk to the lender than an unsecured loan, which has no assets used as collateral, as they can repossess the collateral. in the event of a defect. Therefore, the lender is more willing to offer a home equity loan.
  • Tax deduction potential: You may be able to write off some of the interest you pay on your home loan. However, you can only take advantage of this deduction if you use the money to pay for home improvements. If home renovations are part of your larger financial plan, it may be worth relying on a home equity loan rather than a credit card, especially if you’re also trying to pay off your high-interest debt.

The inconvenients

  • Risk of losing your home: Since your property serves as collateral, you could lose your home in the event of late payment or default. As long as you’re able to track your payments, this shouldn’t be a problem.
  • Your house could fall under water: Since a home equity loan relies on the value you have accumulated in your home, there is a chance that you will end up under water on your mortgage (you owe more than the value of the property) if the value of the house drops. This is not a problem if you plan to stay in your home for several years, or long enough for the property to recover in value. But if you were hoping to move soon, you might suffer a loss.
  • There could be more fees: You may need to pay to have your home appraised by a professional to determine the value to get a home equity loan. Usually it costs a a few hundred dollars but could be higher depending on where you live and the type of property. You may also have to pay closing costs on the loan.

Is a home equity loan the best way to consolidate debt?

If you’re in a strong financial position, leveraging the equity in your home to get rid of high-interest debt faster is a smart move. However, if you don’t plan to stay in your home for long or are unsure whether your income will be stable throughout the repayment period, you may be better off choosing another method of debt consolidation.

Other Debt Consolidation Options

There are several ways to consolidate your high interest debt without risking your property.

1. 0% Balance Transfer Cards

To attract new business or issue cards to existing customers, credit card companies often offer a 0% initial APR to customers who roll over the balance on their existing credit card, usually from a competitor.

The introductory period typically lasts 12-18 months, during which this balance incurs no interest charges. This means that your payments go 100% towards paying off the principal balance, allowing you to get rid of this debt faster. Usually there is a 2% to 5% balance transfer fee up front. The key is to pay off your balance before the end of the introductory period or you’ll start racking up interest charges again.

2. Take out a personal loan

Personal loans, which are loans you can use to pay almost anything up to a predetermined amount, can also help consolidate your debt. Rates are generally lower than credit card rates, at least for borrowers with good credit.

There are two types of personal loans: secured and unsecured. Secured loans are secured by collateral, such as a bank account or vehicle. This helps reduce the lender’s risk, which results in a lower interest rate. Unsecured loans allow you to borrow money without providing collateral; the trade-off is that the rate may be a bit higher and you may be subject to stricter requirements.

3. Develop a debt management plan

If you’re having trouble making payments on unsecured debt, such as credit cards or personal loans, you might consider working with a nonprofit credit counseling agency to develop a debt management plan. debt (DMP). An accredited advisor will take care of your payments and negotiate on your behalf with lenders to reduce the cost of your debt. You will then make your reduced payments directly to the agency and receive regular progress reports. Registration for a DMP may be chargeable.

Find the best home equity lenders of 2022

]]>
YK Osiris Joking Receives $65,000 Debt Consolidation Check From Barstool Sports https://canalvoyagers.com/yk-osiris-joking-receives-65000-debt-consolidation-check-from-barstool-sports/ Mon, 17 Jan 2022 08:56:58 +0000 https://canalvoyagers.com/yk-osiris-joking-receives-65000-debt-consolidation-check-from-barstool-sports/ Debt free is the way to be! If it looks like YK Osiris has finally found relief to pay off all the debt he owes. The singer owes money to people left and right, from Lil Baby to the recently paid Drake. With all the buzz surrounding his debt from making multiple bets, Barstool sports […]]]>

Debt free is the way to be! If it looks like YK Osiris has finally found relief to pay off all the debt he owes. The singer owes money to people left and right, from Lil Baby to the recently paid Drake. With all the buzz surrounding his debt from making multiple bets, Barstool sports decided to step in and help Osiris clear his name. In an episode of the YouTube series “Sundae Conversation”, Osiris explained how he got into the debt situation to begin with.

Host Caleb Pressley asked him, “Why do you owe so many people money?” While laughing and showing his perfectly white teeth, the ‘Worth It’ singer replied, “I don’t make smart bets. I just jump in the water and swim. Osiris then asked Caleb: ‘Es you gone to save me?” Caleb came over and handed her a check for $65,000.

As Osiris sat there laughing, Caleb asked if the debt consolidation check was enough to cover his debt? Still laughing, Osiris explained, “I need more than this man. How can I get more? How much do I owe you on interest? Caleb told her they would worry about it later. Although it seemed like a joke, Osiris was in good spirits about the show. The housemates liked the video and the majority of the comments were about the beauty of her teeth.

One commented, “That’s the smile for me.” Another commented: “At least he doesn’t flex like he has the racks. Even if he was buying earrings for $300,000. If you remember last month, Osiris published a $60,000 reward for his missing diamond earring, he lost. Osiris has not revealed whether the earring, which cost $325,000, has yet been found. Roommates, leave a comment and let us know what you think of the clip?!

Want updates straight to your text inbox? Call us at 917-722-8057 or Click here to join!

The post office YK Osiris Joking Receives $65,000 Debt Consolidation Check From Barstool Sports appeared first on The shadow room.

]]>
Struggling with debt? Four ways a debt consolidation loan can help you https://canalvoyagers.com/struggling-with-debt-four-ways-a-debt-consolidation-loan-can-help-you/ Tue, 11 Jan 2022 15:48:53 +0000 https://canalvoyagers.com/struggling-with-debt-four-ways-a-debt-consolidation-loan-can-help-you/ Post views: 270 Personal debt in the UK has risen by £63.7bn since September 2020, with the average household owing almost £63,000 according to money charity. While most people think they can balance their finances, many feel overwhelmed, Citizens Advice currently deals with nearly 2,000 debt issues every day. So it’s no surprise that many […]]]>

Post views: 270

Personal debt in the UK has risen by £63.7bn since September 2020, with the average household owing almost £63,000 according to money charity. While most people think they can balance their finances, many feel overwhelmed, Citizens Advice currently deals with nearly 2,000 debt issues every day. So it’s no surprise that many are looking for a way to get their finances under control. This is where a debt consolidation loan could be the answer.

A debt consolidation loan is where you take out a larger loan to pay off all your other debts, leaving you with just one more manageable repayment each month. It is often used to simplify finances and get borrowers back on track if they are struggling to get their debts under control. Here are four ways they can help you.

1. Accelerate your way to debt relief

It can be easy to get into the habit of only paying the minimum monthly repayment on credit cards, usually just five percent of the outstanding balance. This means that it will usually take decades to settle the balance, while being charged a considerable amount of interest along the way. You’ll also always have access to your remaining credit limit, putting you at risk of continuing to spend on the card and never reducing what you owe.

Likewise, many people sink so deeply into their overdraft that sometimes, even after they’ve been paid, they don’t make it out. In this situation, it can be hard to justify asking your bank to lower your overdraft limit if it leaves you struggling for the rest of the month. Plus, if you accidentally go over your overdraft limit, most banks charge a penalty and a higher interest rate, making it a costly situation.

Consolidating your debts into one loan means you’ll have a fixed end date in sight, so you’ll know exactly when you’ll be debt-free. Provided you can follow the repayment schedule, knowing when your debts will be paid off can be a huge financial stress reliever.

The interest rate charged is usually much lower than that of a credit card, and spreading out repayments over time can mean that these payments are lower and more manageable. However, there are usually fees attached to these types of loans and different providers charge different rates, so it pays to shop around.

To get an idea of ​​how much you might need to borrow and for how long, the experts at Ready.co.uk have a very useful debt consolidation calculator.

2. Process only one refund

If you manage several lines of credit, you will have to manage several amounts and repayment periods. While this is often made easier by setting up a direct debit for the amount you need to pay, you still need to make sure you have enough funds in your bank account to cover each transaction.

This is where many run into problems: either they don’t have enough money to cover all the direct debits they have put in place, or they have so many repayments to make at different times that it it’s easy to forget what you owe where. The problem with missed or late payments is that they usually incur fees, on top of the interest you usually pay, which further increases the debt. Add to that the damage it does to your credit score, and it’s not hard to see why multiple repayments can quickly become a serious problem.

A debt consolidation loan comes with a single payment, for a fixed amount, at the same time each month until it is paid off. It’s common for people to set up a direct debit to have this payment automatically taken from their bank account shortly after payday. This means they can be sure they can repay the right amount, at the right time, month after month.

Another advantage of having only one reimbursement is to make everyday life more manageable. Without having to track so much, it should be a lot easier to see how much disposable income you have each month, and a lot less stressful on you and your finances in general.

3. Potentially get lower interest rates

Most debt consolidation loans will fall under the category of ‘homeowner’ or ‘secured’ loans, which means that your home will be used as collateral against the amount you are borrowing. With this security, there is less risk for the lender, who will therefore be more likely to offer you better interest rates.

This can be especially helpful if your debt is spread across multiple lines of credit. In particular, payday loans, overdrafts and some credit cards carry some of the highest interest rates on the market. If you only have enough money to pay off the bare minimum on these types of credit, and the interest rates are high, it could take you decades to be able to fully pay them off.

By getting a debt consolidation loan with a lower interest rate, you will find that more of the repayment amount will go towards debt reduction rather than interest.

Keep in mind that you usually take out a debt consolidation loan for a longer period than an unsecured loan. Although interest rates may be lower, you could pay more interest overall. However, it is often worth it if it makes everyday life much easier.

4. Improve your credit score over time

If you are struggling to manage your debts and are likely to make late payments, or worse, miss payments altogether, this could really hurt your credit score. Any missed or late payments will be recorded on your credit report for six years, which means that even if you’ve settled your debt for a long time, you could still suffer the effects for years.

Also, if you repeatedly fail to keep up with your repayments, you may find that your lenders are taking other steps to get their money back. This could include legal action, which could lead you to a CCJ (County Court Judgment) or an IVA (Individual Voluntary Arrangement).

These will also remain on your credit report for six years, but it can be nearly impossible to get approved for other lines of credit. While it’s best not to borrow more money while you’re paying off debt, it could also affect much more mundane things like renting a property and getting a cell phone contract.

Paying off your creditors and closing your accounts with them using a debt consolidation loan is a great first step towards improving your credit score. Then, provided you can keep track of your repayments on your debt consolidation loan, you will demonstrate to lenders that you are a responsible borrower who can handle credit well, which can go a long way to improving your credit score.

]]>
What Is Debt Consolidation And Is It A Good Idea? https://canalvoyagers.com/what-is-debt-consolidation-and-is-it-a-good-idea/ Fri, 07 Jan 2022 22:45:00 +0000 https://canalvoyagers.com/what-is-debt-consolidation-and-is-it-a-good-idea/ CNN Underscored examines financial products like credit cards and bank accounts based on their aggregate value. We may receive a commission from the LendingTree Affiliate Network if you apply for and are approved for a product, but our reporting is always independent and objective. According to Experian 2021 Credit Report, US consumers with credit card […]]]>

CNN Underscored examines financial products like credit cards and bank accounts based on their aggregate value. We may receive a commission from the LendingTree Affiliate Network if you apply for and are approved for a product, but our reporting is always independent and objective.

According to Experian 2021 Credit Report, US consumers with credit card debt have an average balance of $ 5,525, while the average credit card interest rate is currently well above 16%.

For those in arrears, high debt and a high Annual Percentage Rate (APR) can combine in the worst possible way, often creating a cycle of high interest debt payments that consumers cannot escape. And, even for those who can Keeping up with monthly payments, too much credit card debt can prevent them from reaching other financial goals, like saving for the future.

Either way, debt consolidation offers a way out of credit card debt that is much less serious than bankruptcy. You just have to be prepared to create a plan and stick to it until you are debt free. If you want to get out of debt for good, read on to find out how debt consolidation can help.

If you’ve been trying to plan your way out of debt or make more money but nothing seems to be working, debt consolidation might be the answer you’re looking for. With debt consolidation, you will essentially be swapping out the loans and credit card balances you have for a new loan product with better rates and terms, thus reducing your monthly payments or making it easier to allocate more. from your money to reducing principal on debt, or both.

Essentially, with a debt consolidation, you take out a new loan and use the proceeds from that new loan to pay off all of your old debts, and then make monthly payments only on the new loan. Broadly speaking, there are three financial products that consumers use for debt consolidation:

  • Debt Consolidation Loans, also called personal loans, allow you to refinance your debts into a new loan with a fixed interest rate and fixed repayment term.
  • Balance Transfer Credit Cards allows you to consolidate your debt on a new credit card that offers 0% APR for a limited time.
  • Home equity loans can help you consolidate your debt into a new loan product backed by the value of your home.

Whichever product you decide to use, remember that debt consolidation only really works if you stop taking on more debt. If you consolidate debt with a personal loan or credit card with balance transfer and continue to charge more for purchases on other lines of credit, debt consolidation is probably a waste of time.

Click here to compare several personal loan offers on LendingTree, an online loan marketplace.

Debt consolidation may or may not be a good idea. It all depends on how seriously you take the process and whether you have the discipline to carry it out.

As an example, let’s say you currently have $ 5,525 in credit card debt at an APR of 19%. In this scenario, you could pay $ 100 per month for this debt for 133 months – or more than 11 years – before it is paid off. During this period, you would have paid more than $ 7,701 in interest.

But what if you consolidate that $ 5,525 of debt into one personal loan? Although personal loans vary, most allow you to borrow money for two to seven years. Personal loans also come with fixed interest rates, fixed repayment terms, and fixed monthly payments.

In this example, you may qualify for a 60-month personal loan with an interest rate of 7%. In this case, you would pay off your balance with a monthly payment of $ 109 for five years (60 months). During that time, you would pay approximately $ 1,039 in interest payments. That’s a huge savings of over $ 6,000.

Save money with a personal loan offer from LendingTree.

You can also consolidate your debt with a credit card. However, it’s important to note that while balance transfer credit cards offer an introductory 0% APR on transferred balances, the longest possible term currently offered is 21 months. After that, your interest rate will revert to the normal APR, which will always be high.

For this reason, a credit card balance transfer is only a good idea when you have an amount of debt that you can pay off during the card introduction period. If you need more time to get your debt under control than a balance transfer allows, you should consider a personal loan instead.

Finally, you can also consolidate your debt with a home equity loan that uses your home as collateral. In many cases, this can be a good idea, as home equity loans can come with low fixed rates as well as a fixed monthly payment and a fixed repayment term. Remember, you need good credit to get a home equity loan, and you can lose your home if you default on your payment.

But, in either of these cases, if after consolidating your debt, you overspend and accumulate an additional $ 5,000 in debt on the same original credit card that you used before that you can’t afford to pay off. that $ 100 in monthly payments on that debt, you end up paying an additional $ 4,985 in interest. Add that interest to the extra $ 5,000 of debt and your situation will be worse than you started with. This is why it is so important to stay disciplined and not keep spending more than you have when pursuing debt consolidation.

Check your interest rates on personal loans on LendingTree.

There are other debt consolidation options you can consider, some of which offer help from third party companies. For example, you might consider signing up for a Debt Management Plan (DMP), which takes place when a credit repair agency helps you negotiate interest rates and pay off your debts over a period of time. determined.

Just note that DMPs are not for everyone, and there is nothing credit repair agencies that offer DMPs can do that you cannot do on your own. Additionally, a number of credit repair agencies have gained a bad reputation, so be sure to do plenty of research before you embark on this route.

Another alternative is debt settlement, which is a process that helps you pay off your debts for less than you owe. However, it is essential to know that debt settlement companies ask you to stop paying your debts while they are working on your behalf. Not surprisingly, this can cause considerable damage to your credit score that can last for years.

See if you qualify for a personal loan from LendingTree even if you have bad credit.

Debt management becomes considerably easier when you have a reasonable interest rate and a monthly payment that matches your income. A big part of what debt consolidation does – it helps you transfer high-interest debt to a new financial product on better terms.

Another benefit of debt consolidation is that you can reduce the monthly payments you make. If you’re currently trying to cope with five or six credit card bills, consolidating debt with a personal loan company or peer-to-peer lender can help you make the jump to just one payment per month. .

With that in mind, several factors can determine if debt consolidation is right for you. These include:

  • Your solvency: You will need good credit or better to qualify for a personal loan at the best rates and conditions. If your credit is poor, you may not be eligible for a new loan with better rates than you currently have.
  • Your desire to repay debt: Debt management takes time and effort, and full debt repayment can take years. If you are not serious about debt consolidation, a debt consolidation loan may not leave you in the best position.
  • Your ability to avoid new debt: For your debt consolidation to be successful, you must stop accumulating more debt. While you are paying off your debt consolidation loan, you should only use cash or debit. At the very least, you should use credit sparingly.

So, should you consolidate your debts? If you pay credit cards with high APRs, debt consolidation may be just what you need. Remember, you will only pay off your debt if you make a plan, and most importantly, if you stick to it. If you take out a personal loan and continue to take on credit card debt, you could end up worse off in the long run.

Learn more about personal loans at LendingTree and get quotes from multiple lenders.

Get all the latest personal finance offers, news and tips at CNN Underscored Money.

]]>
Best Debt Consolidation Options of 2022 https://canalvoyagers.com/best-debt-consolidation-options-of-2022/ Fri, 07 Jan 2022 08:00:00 +0000 https://canalvoyagers.com/best-debt-consolidation-options-of-2022/ Editorial independence We want to help you make more informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and allow us to earn a referral commission. For more information, see How we make money. Juggling debt from multiple sources can make your finances feel like the […]]]>

We want to help you make more informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and allow us to earn a referral commission. For more information, see How we make money.

Juggling debt from multiple sources can make your finances feel like the biggest puzzle in the world.

Debt consolidation can help organize those debts and monthly payments into something much more manageable. By streamlining your debts from different credit cards or lenders into one consolidated payment — especially if you get a lower interest rate in the process — you can jump-start your debt repayment success.

However, you need to be strategic about how you implement consolidation into your repayment plan. Choose a consolidation option that works with your credit score, matches your timeline and goals, and will help you establish healthy, long-lasting financial habits.

Choosing the Right Time to Consolidate

Before choosing a consolidation method, make sure you are at the right stage of your debt repayment journey to reap the most benefits. If you’re just starting out, your options may be limited.

“Often, if someone has maxed out or their credit has been affected, it can be difficult to qualify for many options,” says Katie Bossler, financial expert and quality assurance specialist at Greenpath Financial Wellness, a national non-profit organization that provides financial counseling services. “Or the conditions may not be favorable.”

This is all the more common as lending standards change in response to the economic downturn. Lenders and creditors reduce their own risk by being more selective about who they offer these options to, let alone who qualifies for the most favorable terms.

If your credit isn’t great today, start paying off your balances using standard best practices: pay more than the minimum amount due and start making additional payments when possible.

“As you pay down debt, your credit will likely increase accordingly, so these options may become available or be more favorable,” Bossler says. Once you are further along in the payment process and have improved your score through factors such as your positive payment history and low credit usage, your consolidation options may improve.

You should also consider the types of debt you want to consolidate and how you might approach your options differently. For example, credit card balances and high-interest personal loans can be consolidated, but you should generally only consolidate student loans with other student loans.

When you’re ready to consolidate, here are some options to consider:

Credit cards with balance transfer

Balance transfer cards offer zero percent interest introductory periods, usually between 12 and 18 months. After opening the card, you can transfer other high-interest debt balances for a fee and pay them off throughout the introductory period. As you do not accrue interest, each payment will go directly to the principal.

Jordanne Wells WiseMoneyWomen spent much of 2019 paying off $30,000 in credit card debt. She started by changing behaviors like adopting a strict budget, making regular extra payments, and automating her payment schedule.

But Wells, 34, says consolidating the balances of his most valuable cards onto a single balance transfer card was a key part of eliminating his debt.

“Instead of having five or six different cards that I was calling, it was just one big card. I could just hit it and do it.

But like everything else in 2020, balance transfers are getting trickier. Issuers not only pulled many of their best balance transfer offers, but they also tightened lending standards, so available cards are harder to get without great credit.

Pro tip

Whichever consolidation method you choose, be sure to save money by transferring your high-interest debt to an option with a lower APR. Over the course of paying off your debt, even a few percentage points in interest could add up to huge savings.

If you can qualify, always make sure you have a repayment plan in place before transferring your balance to a new credit card. If you are unable to repay a significant portion of your balance during the introductory period, you will only prolong your debt and may even pay more in the long run. In fact, some issuers retroactively charge interest back to the day you transferred your balance if you don’t pay the balance in full by the end of your introductory period.

Personal loans

Like a balance transfer, consolidation through a personal loan can help simplify your debt repayment by combining your debts into one standard monthly payment.

The best part? You can significantly reduce your interest. While credit card interest rates average around 16%, average personal loan rates are below 10%, according to the Federal Reserve (although terms vary, with the best rates going to those with the best credit). And since personal loan rates are often fixed, you don’t have to worry about your rate fluctuating over time.

Prepare to be proactive with paying off your debt if you choose a personal loan. Depending on the length of your repayment period, the amount you owe each month could be more than the minimum payment you’re used to paying on your credit cards, even taking into account the lower interest rate.

Before taking out a new loan, always make sure the repayment schedule matches what you are able to pay. Also, do your research to find a lender willing to give an interest rate lower than your current APR; you can get an interest rate as low as 6% with some of today’s best personal loan deals.

home equity

If you’re a homeowner, you may be able to use the equity in your home – what the home is worth minus what you owe – as a consolidation tool, through a home equity loan or home equity line. home equity loan (HELOC).

With a home equity loan, you can take out a lump sum, use it to pay off your high-interest debt, and then pay off the loan in standard monthly installments. A home equity line of credit acts more like a credit card; you can borrow against the line of credit as needed to pay off your other debts and then pay off the HELOC over time.

Like other consolidation methods, the best reason to consolidate by home equity is to score a lower interest rate (loans can be fixed, while HELOCs are often variable). Secured loans like these may also be more viable options for homeowners without great credit, as other consolidation methods generally require a good credit history.

But a home equity loan or HELOC can be risky. Because these are secured loans, using your home as collateral could risk foreclosure if you don’t pay. And since home equity loans are based on the value of your home, you could also risk owing more if your home’s value drops.

Debt management plan

If other consolidation options don’t work or you’re really overwhelmed with your debt balance, consider working with a nonprofit credit counselor on a debt management plan. These plans are designed to consolidate and reduce your monthly payments, whether your debt is from credit cards, personal loans, or even collection debt.

Always look for credible, non-profit credit counseling agencies such as those approved by the National Credit Counseling Foundation.

Credit counselors can help you negotiate the terms of your debt, lowering your interest rate and reducing your minimum monthly payments, often based on your discretionary income and the payments you are able to make each month . This could be a particularly useful option if you want to start paying off your debts, but are facing a period of financial difficulty.

“When you’re on a debt management program, you have that monthly payment and you know the debt will be paid off within that time frame,” says Bossler. Removing the pressure of arranging payments to different lenders on different dates throughout the month lets you focus on the other details that will help you pay off your debt, like streamlining your budget and cutting expenses.

Conclusion

Debt consolidation can be a great tool for paying off your debts, but you have to be smart about how you implement it. Take the time to work out the different types of debt you have and how different consolidation options can best align with what you can afford, your schedule, and your other financial goals.

“When you go through all of this, there’s not necessarily a right or wrong answer,” says Bossler. “It’s just a matter of evaluating the options available to you. Really understand the terms, the interest rates, what you’re getting into before you jump in.

]]>