Before Getting a Debt Consolidation Loan, Ask Yourself These 3 Questions

For consumers carrying a large debt load, life can be a very stressful experience. Managing payments and dealing with creditors is difficult when you are barely keeping your head above water and having trouble making ends meet. Consumers can get into a vicious cycle of cash shortfalls and continuing to use credit cards just to make it through the month. When they approach the brink of insolvency, they begin to look for solutions to deal with their oppressive debt.

Many consumers, in fact millions, are carrying debt loads that are too much for them to handle. Much of the debt they are carrying is credit card debt. As of the end of the first quarter of 2017, Americans reached an all-time high in their levels of consumer debt. A recent article in the New York Times noted that household debt surpassed the previous high-water mark reached at the beginning of the financial crisis of 2008.

With household debt soaring to new heights, many consumers are considering debt consolidation loans as a means to manage their oppressive debt. While debt consolidation can be a viable means to managing one's debt, there are certain pros and cons to consider and questions every consumer should ask before taking that path.

However, before we cover those questions, let's take a deeper dive into debt consolidation loans.

What is a debt consolidation loan?

Debt consolidation loans help consumers by combining all their debts into one loan that has a single payment. The hope is that the interest rate will be substantially lower than what the consumer has been paying on individual credit cards. This likely would mean that the new payment would also be substantially less than the sum total of the consolidated payments. In addition, making just one payment per month instead of many streamlines the process and takes some of the strain of the debt burden off.

By reducing the outflow of cash, the consumer has a chance to get on top off his or her debt problem or put more money towards paying off the debt. Debt consolidation loans come in several forms, and choosing the right one is an important step in resolving one's debt. Give careful consideration to details of the consumer's individual circumstances such as how much the individual needs to borrow and his or her current credit score.

Many consumers who are homeowners look to utilize the equity in their homes to address their debt problem. This is only possible, of course, if the consumer owes substantially less on the mortgage than the home is worth. Many times, this equity comes via a Home Equity Line of Credit, or a HELOC. If the borrower receives approval for the line of credit, he or she is free to use the funds in any manner, so it's a suitable way for consumers to consolidate their debt. HELOCs usually require the borrower to have a large amount of equity in the home, have a good credit score, and be able to show a verifiable source of income.

Other borrowers will choose to utilize the equity in their home by refinancing their mortgage and taking additional cash out to pay off their debts. The consumer borrows more money than the current home mortgage balance and uses the excess to consolidate credit card debt into the mortgage. As with a HELOC, for a consumer to qualify for a home refinance, he or she would need a favorable credit score, adequate equity, and verifiable income.

For consumers who have credit card balances that are relatively small, a personal loan might be a viable option. Banks and finance companies usually extend these loans to consumers who have decent credit scores and a low amount of debt. Interest rates on personal loans are usually less than what credit card companies charge, but the term of the loan is usually relatively short, compared to mortgage loans. Many consumers take out these loans to get their credit card debt paid off quickly.

The upside to debt consolidation loans

Debt consolidation loans can help consumers get on top of their debt problem. Consumers should consider some of the advantages of consolidating debt.

Just one payment

For many consumers, one of the more attractive things about obtaining a debt consolidation loan is taking all of their debts payments and combining them into one payment. Having just one payment to make each month helps consumers stay organized and avoid missed and late payments.

Reduced payments

Most consumers consolidate their credit card debt to reduce the amount of money they are paying out each month. If they are able to get a much lower interest rate, they could see substantially lower payments, depending on the length of the terms. This could help consumers save money for emergencies or put more money toward their debt each month.

Lower interest rates

Debt consolidation loans such as mortgage refinances, HELOCs, and personal loans will nearly always carry a lower interest rate compared to credit cards. This will result in lower payments that can help a consumer be better able to make ends meet and stop living paycheck to paycheck. In fact, if they save enough money each month, consumers may be able to begin saving money as a protective measure against financial emergencies, such as medical bills, expensive car repairs, or even job loss.

Get caught up

For consumers who have been struggling to keep up their payments, or are behind in their payments, a debt consolidation loan can be a breath of fresh air. With all their credit cards accounts paid off, and their debts consolidated into one, they can focus on getting their financial lives back on track and stop worrying about late or missed payments.

Moreover, if their new, lower payment allows them to open a savings account, they may be able to create some financial security for their family instead of depending on credit cards to make ends meet.

The downside of debt consolidation loans

Debt consolidation loans carry some significant advantages for consumers who utilize them to address an oppressive debt problem. However, some potential drawbacks to debt consolidation loans are of note for consumers to be aware of when considering a consolidation loan.

Some consumers may be at risk of accumulating credit card debt again

Consumers that do the hard work and maintain the self-discipline to pay off their credit cards one painful payment at a time learn valuable lessons about money management. Because of this, they are much less likely to fall back into debt than those who have utilized a debt consolidation loan to address their debt problem.

Debt consolidation, especially mortgage-based consolidation loans, tend to “sweep debt under the rug” for many consumers. The process is just too easy. The danger of this is that, by not going through the difficult process of paying off debt through hard work, the consumer could end up accumulating more debt on top of an already bigger mortgage. If this happens to a large degree, a consumer could potentially put his or her home in danger of foreclosure if unable to meet their obligations.

Consumers may pay more interest over the life of the loan

Rolling debt into a mortgage loan could mean that, even with a lower interest rate, consumers could end up paying more interest in the end. This is because mortgage loans have much longer loan terms. Mortgage loan terms can vary, but most are 30 years. Consumers should put a calculator to the numbers to make sure that consolidating debts into the mortgage makes sense.

Consumers may not change their spending practices

Many consumers do not change the way they manage their money after consolidating their credit card debts. If this is the case, they can find that not much changes for them after debt consolidation. Many times, the extra cash flow created with debt consolidation is eaten by poor spending habits. Therefore, consumers may find themselves relying on credit cards once again to get through the month.

Three questions to ask before you get a debt consolidation loan

Before making the leap to consolidate credit card and other debt, ask yourself three questions to make sure you are making the best possible financial decision.

1. Have I made the necessary lifestyle changes to make debt consolidation successful for me?

It is important to recognize the circumstances that put you into debt in the first place. If you have been overspending and being irresponsible with money, this will need to change for debt consolidation to work. If you continue to live above your means and start relying on credit cards to make ends meet, you will soon find yourself back in debt again.

If your problem has arisen from circumstances beyond your control, such as an unexpected illness or injury or the loss of a job, make sure your situation has improved and that you will be able to meet your obligations going forward. A debt consolidation loan can only make your financial situation worse if you continue to rack up debt in addition to your new loan.

2. Have I chosen the right type of loan for my circumstances?

As mentioned above, several types of debt consolidation loans exist for consumers to consider. It is important to remember that bundling your debts into your home mortgage comes with some risk. If you are unable to meet your larger mortgage payment, you could be putting your largest asset at risk. Losing your home to foreclosure is a monumental, catastrophic event, so be sure you are not inviting that risk with a new debt consolidation loan.

If your debts are not too large, and you are looking to pay them off quickly and efficiently, then you may consider a personal loan. Personal loans can be a good choice for those consumers who have good credit and relatively small credit cards balances.

3. Are there other options available to me other than a debt consolidation loan?

Debt consolidation can be a good option for many consumers, but for those who've had money issues for some time, qualifying for a loan may come with considerable challenges. If you are willing to put in the hard work and remain diligent about paying off your credit card debt, you could potentially handle your credit card debt repayment on your own.

DIY debt management

Those who have the self-discipline to take on a DIY debt management strategy have a couple of options to consider. One is to simply look at your statement and determine, from the information on the front page, what payments are necessary to pay off your balance in three years. All credit cards companies must provide you with this information on their statements. Then, you simply pay that amount, every month without fail (for every card), and you will be free from credit card debt in 36 months.

Or, you could utilize the “snowball method” where you start with the lowest balance first, pay as much as you can on it every month, and just pay the minimum on everything else. Once the lowest is at $0, you move to the next, and so on, until all debts are gone.

Consumers who are unable to make any progress with their debt on their own and are unable to qualify for a debt consolidation loan might consider working with a debt management company. National Debt Relief works with consumers to settle their debts with creditors by negotiating a lump sum settlement. While the process isn't fast, it's far better than declaring bankruptcy.

Getting on top of a burdensome debt load can be difficult for many consumers. It's important to remember that acting before options become few is imperative. Take the first step today and get your debt under control so you can get back on the road to financial peace.

9 Things to Watch Out for With Debt Management Plans

Americans are more in debt now than they have ever been. The numbers on household debt show that it has reached a high that has surpassed the staggering number reported during the financial crisis in 2008, when the nation began to sink into the Great Recession. As of the end of March 2017, household debt in America reached $12.73 trillion, which is $50 billion higher than it was in 2008. This is according to the Center for Microeconomic Data, a part of the New York Federal Reserve that tracks statistics and trends relative to household debt in America.

Now, with the U.S. economy on the rebound and people feeling quite optimistic about their financial futures, American consumers are eagerly borrowing money. With interest rates so low and banks finally easing their credit practices, Americans have tremendous borrowing power, and this trend shows no signs of easing up.

Consumers choosing to purchase homes, cars and other big-ticket items: these are all good for the U.S. economy. However, even though delinquency rates are much lower than they were in 2008, it is still a bit worrisome some that Americans are accumulating so much debt.

Why are Americans accumulating so much debt?

The pursuit of the American dream is a long held ideal that is near and dear to the hearts of most Americans. Some of the debt they acquire is “good debt.” For example, obtaining an affordable mortgage in order to make an investment in a home is good debt. Or, taking out a student loan to acquire an education that will raise your earning power over your lifetime is, most likely, a good investment.

However, there are many other reasons why Americans are accumulating debt at an alarming pace, aside from the bedrock purchases of homes and education. Many consumers simply have no knowledge or experience in managing money or have limited skills on budget building and saving money. Those that have not learned to stretch their dollars to make ends meet will often rely on credit cards to make up for the budget shortfalls they encounter on a monthly basis. In addition, many consumers lack the financial discipline necessary to live within their means.

Another problem is that most Americans have no money in savings. Estimates by many financial experts state that nearly 70% of consumers in the United States have less than $1,000 dollars saved for unexpected purchases or emergency expenses. When these expenses occur, such as car repairs or medical bills; often, consumers must use a credit card to cover the expense. This can lead to lots of high interest debt that can snowball over a short period.

In other instances, consumers will accumulate debt due to an event such as an unexpected medical emergency. This can be particularly problematic if it interferes with a consumer's ability to work and earn income. If a consumer loses a job, it can be catastrophic, often leading to the accumulation of a considerable amount of debt. In many cases, credit cards are these consumer's only way to survive.

Sometimes, consumers do not realize the financial trouble they are in until they are on the brink of insolvency. It is only when they realize that they are in danger of not being able to meet their financial obligations that the depth of their money problems becomes known. If this happens, it's important that they act quickly to mitigate their debt problem.

If you are seeking a solution to an overwhelming debt problem, you may be considering working with a credit-counseling agency. While the design of their plans is to reign in consumers' debt problems and get them back on track to financial health, there are some downfalls and hazards that consumers should consider. Here are some important things you should be aware of before you decide to hire a debt management agency.

1. There is not much difference between the plans

Most plans offered by debt management agencies are the same, in essence. While the names and marketing change, the plans feature a similar structure. Most agency fees are approximately 2.5% of a consumer's total debt. Sometimes, if there are extenuating circumstances, such as an extreme hardship, a consumer may be able to negotiate a lower fee.

In addition, banks and other future potential lenders do not usually distinguish between the agencies in the marketplace. Most agencies set up a similar payment plan that involves paying off your debt within a period of 3-5 years.

Most agencies will allow you to exit the program at any time if you so choose. Many also allow you to pay more toward your debt, if possible, to pay it off faster.

2. You are essentially hiring someone to make payments for you

Part of the stress of being in oppressive debt is the administrative burden of managing multiple payments to your creditors. A debt management agency offers a plan that makes payments for you until all your debts are gone.

These companies don't issue loans to clients, and they don't negotiate with creditors to reduce the balance owed on the account. They generally just negotiate a payment plan, sometimes at a lower interest rate and with reduced fees. This scenario is helpful because a larger percentage of your payment would go toward the principal of your loan. Some creditors, however, don't offer any concessions.

3. It can be hard to find the right partner

It's important that you choose a company with a good reputation for genuinely helping consumers resolve their debt problems. Unfortunately, many companies in the marketplace do not have the best interests of the consumer in mind. Non-profit credit counseling organizations that belong to the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America (FCAA) are what consumers should be looking for in an agency. These organizations ensure that their members face a rigorous set of standards and have counselors that have met the requirements of a comprehensive program of certification. Even if they have endorsement, though, or they are members of these reputable organizations, be careful to choose an agency with a track record of sending payments to creditors in a timely fashion. Strong customer support is an important attribute to look for.

4. Avail of credit counseling first

It's important that consumers meet with a counselor first to have a thorough assessment of their financial situation performed. Your ability to manage your basic expenses is an important aspect of getting control of your finances and working toward a manageable financial situation. A credit counselor will be able to assess your financial picture and bring ideas to the table on how your might get be able to solve your debt problem. Counselors typically have training to ask the right questions and offer up compassionate and well-thought-out solutions to your debt problem.

5. Debt management is not for everyone

Determining whether a debt management plan is the right solution for you is a very important part of the process. Assessing the type of debt you have is imperative to understanding if debt management can truly help you solve your debt problem. If your debt consists of primarily unsecured debt such as credit cards, medical bills and personal loans, debt management may be a good solution for you.

However, if your debt consists of complex debt, such as child support or unpaid taxes, there is a very good chance that debt management isn't an ideal solution for you. It's also important that you are able meet the long-term obligations that your credit counselor has negotiated for you.

6. Once negotiated, your plan is simple

Your counselor will do his or her best to negotiate the best possible repayment plan for you. Your payment plan should be stable, meaning your payments should remain the same every month. This will help you plan your finances for the next few years. Payment plans generally stay the same until your debts are gone.

Depending on the structure of your accounts, and their balances, some debts will go away faster than others will. Once a balance is satisfied, the payment for that debt is redirected to help pay off other debts. In addition, calls from creditors will stop once a repayment plan is in place, taking away unnecessary and unwanted stress and aggravation.

7. Closing your accounts is a necessary action

When you enter into a repayment agreement with a debt management company, it will likely ask you to close all your accounts and not acquire any new ones until you have paid off all your debt. The intent is to make you change your spending habits and prohibit you from acquiring more debt while you're working to pay off your existing debt. This is a good practice but one that many consumers are afraid of. They have become so accustomed to depending on their credit cards that they feel vulnerable without them. Generally, the consumer can keep one card to use in the event of an emergency, but that card should have a low interest rate.

8. You will have to report your account details every month

When a debt management company takes charge of managing your debt, it will still need some help from you to keep track of what you owe. While the agencies will keep track of your principal balance, its reports will not show the interest you must pay on your credit card balances every month. Therefore, it is important that you help your partner reconcile your balance each month so there is a clear picture of what you still owe. You can simply send in your statements to the agency every month to do this.

9. Debt management can affect how lenders perceive you

Even though you are paying your bills each month with a debt management plan, chances are strong that you are paying less than the required amount. Potential lenders will be able to recognize that you are paying through a third party, and that lets them know that you are struggling to stay afloat. Most lenders will require that a debt management plan be finished and all the debt paid off before issuing a new loan to the consumer.

While debt management is not a bankruptcy, lenders will sometimes view it similarly. However, since bankruptcy is such a serious financial decision that will have long-lasting effects on your credit, debt management is a better choice. Once you have paid off your debt, your credit score should rebound over time.

Using a debt management agency to help you consolidate your debts can be a positive step for many consumers struggling with credit card debt. Sometimes, if consumers act swiftly once they realize insolvency is ahead, they can help themselves by stopping all credit card use and requesting that their lenders reduce their interest rates. With self-discipline and good budgeting, some consumers can work their way out of debt on their own. There are some good tools available to consumers online to help them formulate a budget or calculate their debt repayment options.

If consumers wait too long to address their debt problem, many times, their options become very limited, with debt management no longer an ideal choice. Rather than claim bankruptcy, which is a catastrophic event, consumers might consider getting some debt relief through a debt settlement company. National Debt Relief helps consumers become debt free by negotiating with their creditors to reduce their balances and get them paid off once and for all. Although debt settlement isn't a fast process, and it will still have a negative effect on your credit score, it is a good alternative to bankruptcy.

Getting on top of a debt problem is sometimes a difficult path, but so is living day to day with the stress of being in over your head. Take action before your options become too limited.

Why Debt Consolidation Isn’t a Magic Solution

debt consolidation

Debt consolidation isn't a magic solution for your debt; it's the first step on a long journey.

Debt consolidation has helped thousands of people get out of debt, and on paper, it's easy to see why. Consider a debt consolidation loan, for example. You take out a loan that's large enough to cover all of your debts. You pay them off in one fell swoop, consolidating them into this new loan. Ideally, this loan has a lower interest rate and monthly payment, meaning you save money both now and later. You then focus on paying off that loan to be free of debt. It seems like a simple, attractive solution to a complex problem.

Just because the basics of debt consolidation are easy to understand, though, that doesn't mean debt consolidation is easy to make work. It isn't a magic solution, and here are three reasons why.

1. Debt consolidation doesn't give you a safety net

One of the major reasons why people fall into debt is because they didn't really have a choice. By definition, debt spending is spending money that you don't have. Sometimes, we need to spend beyond our limited means just to get by.

Take, for example, student loans. Most of us don't have $37,172 (the average student loan debt load upon graduation) laying around to spend on education. Despite that, we know that getting a college education is essential to having access to more fulfilling, higher paying jobs. So, we borrow the money to pay for the necessity, sure that the extra pay we'll merit will make it all worth it in the long run.

Often, it's more immediate and dramatic needs that drive people into credit card debt. Imagine that your spouse becomes seriously ill and insurance can't or won't cover all of the medical bills. Imagine you wreck your car and can't afford to get it fixed, leaving you unable to get to work. Imagine it's the end of the month and you just don't have enough money in your bank account to make rent and keep the lights on. These everyday emergencies often force us to take on high-interest debt that can snowball fast.

Consolidating your debt can help you make these types of debt more manageable, but it doesn't prevent emergencies from popping up in the future. In other words, it's not a magic solution preventing you from falling back into debt. If you're serious about becoming and remaining debt-free, understand that reality.

2. Debt consolidation moves debt around, it doesn't eliminate it

This is an obvious reason, but so obvious that it can be easy to miss. When you consolidate your debt, you're just moving it around; you aren't out of the woods.

It seems almost silly to mention since the very definition of debt consolidation is that you're moving all of your debt into one place. You're reorganizing to make your finances easier to handle.

However, we see firsthand at National Debt Relief that people engage in plenty of magical thinking when it comes to their hopes for debt consolidation. While they know intellectually that they're just moving their debt around, they still tend to think of debt consolidation as a final solution.

Here are the facts, though: debt consolidation, in and of itself, is not a solution to debt. It's not even a strategy for getting out of debt. It's a tool and a tactic that you can use to give yourself some breathing room so you can figure out the best way to get your life back on track. It's step one in a journey, not the destination.

Why are we so adamant about this point? The sad fact is this: many people who engage in debt consolidation never actually get out of debt. They seek out debt consolidation when they're in over their heads and use it to take some of the pressure off. When the consolidation happens, they all of a sudden have a little extra spending money and a ton of freed-up credit. They don't have a plan to pay off their consolidation or adequate financial discipline to hold back. After all, in the moment, everything feels like it's under control.

What do they do? They spend. They take all of that freed up credit and use it up again. It starts small with a little here, a spontaneous purchase there, a treat for newfound financial freedom, but it piles up. Within a few years, they're in debt up to their eyeballs again, and worse than before since they now have a debt consolidation loan to deal with. Not only will they need to go through the consolidation process again, it will be even harder to consolidate this time since they have an increased debt load and a history of bad financial behavior.

It's an ugly situation, but it happens all the time. To avoid it, remember: debt consolidation doesn't make your debt go away magically.

3. Debt consolidation does not change your spending habits

As we've already discussed, people fall into debt for a wide variety of reasons. It's hard to give one-size-fits-all advice for getting out of debt.

We can say confidently, though, that there's a constant in just about every single debt situation. You might not be able to control all of the circumstances in your life that lead you to want to spend using debt, but you can control how you respond to them. If you're responding poorly or irresponsibly, debt consolidation won't change much for you. It changes the organization of your debt, but not your spending habits.

In an emergency, you typically can't do much. However, you can be more prepared in case something happens in the future.

If you drove yourself down into debt, though, you need to be prepared to change.

The main takeaway is this: debt consolidation may make it easier to deal with debt in the present; however, it doesn't protect you from falling back into debt in the future.

How do you make debt consolidation work for you?

If debt consolidation isn't a “magic” solution for getting out of debt (and staying debt-free), it's still an enormously effective tool if you know how to approach it correctly. So, how do you make debt consolidation work for you?

Make a long-term plan for paying off your debt entirely

As we've already said, consolidating your debt is step one on a long journey toward becoming debt-free. If you stop there, you won't get anywhere.

Instead, take an hour to sit down and come up with a realistic plan for getting out of debt. The first step in your plan should be dealing with the present. Do that by making a budget.

Start by opening up a new spreadsheet on your computer and listing out all of your income for the month. If paid a salary, then you probably know this number offhand. If you're an hourly employee, it will be variable depending on how many hours you get, but you should be able to come up with an estimate.

Next, subtract your expenses. There will be fixed expenses (rent, car payments, etc.) as well as variable expenses (utility bills, groceries, etc.). Try to peg them to specific numbers and dates as best you can.

Whatever you have left is the amount you'll have to make a move on your debt load. You can go two ways here.

On one hand, you can plan to pay the minimum monthly payments on your debt. If you received a decent interest rate with your debt consolidation loan then this might be the way to go. You'll hit your payoff date and be able to stash away a little extra money each month.

On the other hand, if you want to get out of debt sooner, and you have other forms of debt besides the loan, you might want to devote extra money each month toward paying off your debts more aggressively.

To do this, most people choose a single debt to focus on and devote all of their extra funds toward paying it off. There are two schools of thinking in choosing the debt to target: the “debt snowball” and the “debt avalanche.”

With the snowball, you choose the debt with the lowest balance and devote yourself to eliminating it. You pay this debt off quickly and then use the additional funds to pay off the next-smallest debt, and so on.

With the avalanche, you choose the debt with the highest interest rate and work to pay that off first. This might take longer than paying down the debt with the lowest balance, but it can often save you more money in the end.

If you don't want to use your extra funds to pay down debt, you should still be careful and responsible about how you spend. Treating yourself is fine, but building up your savings account is even better.

Understand why you fell into debt in the first place, and resolve to change

The most important lesson that you can learn from debt consolidation is figuring out why you fell so deeply into debt in the first place. By understanding why you got in so deep with your creditors, you can identify the behaviors that led you to fall into debt and resolve to change.

In some cases, there's a single, easy-to-identify reason that you fell into debt. You crashed your car and couldn't afford to get it fixed. You got sick and needed to cover your medical bills. The list of potential emergencies goes on.

In other cases, it can be much more difficult to point to a single decision and say that's why you fell into debt. Often, debt is the outcome when someone tries to live outside of his or her means. You charged a new outfit, a new pair of shoes, a new gadget, and a night out on the town over the course of a month and a half. Alone, none of these decisions put you over the edge. Together, they created a debt load that was much more than you could handle.

Still, there are themes you can identify and change. Maybe you're too free with your credit card. Maybe you can't hold yourself back from signing up for a store credit card to get 20% off. Maybe you have a friend who is constantly pressuring you to go out and treat yourself regardless of the financial consequences; after all, isn't life too short to be thrifty?

Be honest with yourself and figure out what really caused you to fall into debt; then, change it. If it was emergency spending, consider bulking up your savings account over time so that the next time something bad happens, you'll be prepared. If it was irresponsible spontaneous purchasing, resolve to have more discipline going forward. You should also put some distance between yourself and your spending triggers. Hold yourself back from “just browsing” expensive stores or online shops. Set a limit for your leisure spending. Resolve yourself to only go out a few times each month, and once you hit your number, force yourself to say “no, thanks” when your friends try to negotiate with you. It might not be fun, but this kind of discipline is necessary if you're serious about getting out of debt.

If you think you can handle all of this and make debt consolidation work for you, then now might be the time to research your options. National Debt Relief offers debt consolidation services to people in situations like yours all over the country. We're proud to say that we really make a difference in people's lives; check out our reviews!

Discovering Las Vegas and Debt Consolidation Loan Benefits

Las Vegas has the highest population in Nevada and is famous for being the world’s entertainment capital. The popularity of this unique destination is attributed to the large number of attractions, hotels, resorts and restaurants. Depending on what you want to achieve during your trip, Las Vegas is the ultimate place for both conventional and unconventional experiences.Happy couple with laptop


The heat in the desert can rise rapidly with high summer temperatures. Taking some time during the day to make sure that you drink enough water will prevent fatigue ad discomfort. If you consume a lot of alcohol you are vulnerable to dehydration and you need to increase your water intake during the day.

Protection from the Sun

Apply sunscreen frequently and if you do not remember to bring some with you, there are several convenience stores that stock sunscreen. If you plan to swim or generally sweat a lot, reapply your sunscreen regularly. It is also a good idea to wear sunglasses and wide-brimmed hats to provide protection for your eyes and skin.

Large Resorts

The resorts in Las Vegas are much bigger than they appear to be and if you have any difficulty walking or a health problem, request for rooms that give you easy access to the elevators. Many people encounter such expansive hotels for the first time when they visit Las Vegas and it can be challenging to walk along the halls every day. Debt consolidation made easy here.

Moving around Vegas

The well-planned roads, bus services, airport shuttles and transit systems all make it easy for tourists to get around the city. Although the distances within Las Vegas can be long, transport services that range from taxis to buses give visitors different options to choose from. Many people are interested in going to the Strip, which is an easily accessible destination when you use public transport and the organized transit system.

Debt Consolidation Benefits

Debt consolidation loans are designed to help people settle groups of different debts. This gives you the ability to restructure your finances by making one payment on a regular basis. You can determine whether loan consolidation is the ideal option for you by finding out what it entails. Debt consolidation loans enable you to combine the debts that you have into one loan, which means that you have a single payment to make every month. Organizing your debt in this manner can minimize the hassle of dealing with different accounts and lenders. Visit the site to check the debt company reviews.

How Loan Consolidation Works

A debt consolidation loan moves your debt or most of it into one loan. You can shut down your previous loan and credit card arrangements and use the consolidation loan to pay off debts. Instead of making separate and multiple payments to various creditors each month, you will only make a single payment to the loan provider. Debt consolidation loans are usually unsecured and the lender will not be able to claim your property if you do not keep up with payments. However, this does not mean that you can disregard the amount that you owe. Lenders can seek legal redress if you do not make payments. Secured loans are held against assets and can put property such as your home at risk if you struggle with your payments.

What is the reality of debt consolidation in Las Vegas?

Debt consolidation is the best option when you have been watching your company profits drown in debts. Debt consolidation helps you pool all your small and large debts together, so you have to make only one monthly payment. You don’t have calculate separate interests for different debt repayments or worry about credit card bills payments. If you can find the right business loan consolidation company, they can take care of all your outstanding bills and creditors.woman with phone to head examining document

A debt consolidation company can provide many other supportive services besides giving you a friendly loan. You can expect debt counselling and better debt management services from your lending parties to manage your company finances better. In Nevada, there are two types of debt consolidation programs: one that involves issuing loans and the other that only involves management, negotiation and counselling.

As many as 226,000 people in Nevada are looking for debt consolidation programs right now. Almost all registered debt management companies in Las Vegas offer the following benefits:



  1. A single payment every month
  2. Low interest rates on the loan amount
  3. No penalties for backing out of the consolidation program

Is it worth taking out a consolidation loan every time you are in a financial crisis?

You can take out a consolidation loan for various purposes, including paying your multiple credit card bills. However, when your business is involved, you must remember that the loan amount will be likely higher and the pledged collaterals will be slightly more valuable. So always, think of at least one way you can pay the loan amount back or you will financially be back to square one.

The benefits of most debt consolidation loan companies functioning in Nevada are similar to national debt management plans. You can enjoy the benefits of low and affordable interest rates, extended payment terms and almost no calls from your creditors. However, do not forget to compare your available options before selecting one. Here are some other proven benefits of approaching a legitimate loan company in Las Vegas:

  1. Once you contact the company, your contact details will be noted. You will not be asked to make any deposits or pay any counseling fees. A financial advisor or coach from the company will contact you through company emails or via call. Usually the first couple of counselling sessions are free. With him, you can chalk out your available options and debt management problems before committing to a debt consolidation loan.
  2. With your permission, the financial coach can contact your creditors to reduce the interest rates or increase the repayment term-period. However, this is not recommended, since if you owe money to a bank or another credit union this will result in reduction of credit scores.
  • The coach can also help your with budgeting so you can manage your business finances better after you receive the loan amount. In Las Vegas, it is quite common to get “extra” cash for new investments under the same company name.

Overall, debt consolidation can only work for your business if you revisit your financial management plans and investment options. If you have no plans of paying the loan amount back to the company, you will again land under a mountain of debt in no time.

5 Smart Tips to Handle Accumulating Debt

plan to get out of debtThe U.S. Census Bureau and the Federal Reserve recently released joint data regarding the situation of consumer debt in the country. According to the report, total outstanding consumer debt stands at around $3.4 trillion with average household credit card debt totaling $16,061. It is no wonder then that most household owners have complained about debt repayment being the major cause of stress.

The First Law of Holes

Well, the first law of holes is that when you find yourself in one, you should stop digging. If you are in debt, the logical solution is to stop borrowing, but this is easier said than done. Most people find themselves sinking deeper into the debt abyss to the point of losing valuable assets and filing for bankruptcy.

However, there are some smart strategies you can use to avoid this pitfall. Take a look at some of these:

1. Try Out The 0% Balance Transfer

High-interest rates are like a yoke to borrowers. You end up repaying a debt for years yet most of this money is eaten up by the interest. However, you can transfer your debt to 0% interest credit cards to  give yourself some breathing space. Check the longest introductory periods in the market and use them to get a better deal. This is a proactive strategy where you have to do your research and make sure you repay the minimum amounts in time.

2. Create Debt Strategy

You can only manage what you know and this is why you must take time to evaluate your debt before coming up with a repayment plan. It is important to list all the monies you owe plus the interest rates.

Start with loans that have high-interest rates. Always pay off the loans with the higher interest rates first as they are costing you more money.

3. Sell Your Junk

Most household owners struggle to repay their loans yet they have a solution. If your garage is overflowing, it means you have a lot of junk that can be turned into cash. Your prized golf bag and all its contents which you don’t use can turn into instant cash on eBay today. There is no reason to pile up old furniture in the garage when you know all too well it will never be used. Look around your house and turn all unnecessary items into money which you can then use to repay your loans.

4. Consolidate Your Loans

Most household owners are up to their neck in debt; from auto loans, mortgages, credit card loans to student loans. Repaying all these loans can be very daunting. However, you can consolidate these loans into one new loan which means all the smaller debts are repaid and you only have a single payment to worry about. This means lower interest rates and more cash flow to improve your quality of life.

5. Build a Zero-Sum Budget

A budget is important in financial management, but if you are planning to repay all the money you owe fast, you need a different kind of budget. This means every dollar you earn should be allocated to a specific need. A zero sum budget means no money is left hanging around.

Gaining freedom from multiple loans is what everyone desires. These smart moves will help you start this journey.

Guidelines that determine whether a debt consolidation loan is a good debt relief option

thinking about debt relief optionsWith multiple loans to repay monthly, insufficient funds to repay the loans and confusion over due dates, it would seem like a brilliant idea to have all your debts consolidated into one loan that can be repaid monthly. Perfect solution, right? Wrong! Why? Because you won’t have researched about the debt consolidation plan offered and its suitability in your situation.

The following ideas will guide you in determining whether you need debt consolidation:

  • Types of debt consolidation loans and associated risk

The debt consolidation loans can be secured against your financial assets, giving the lender the chance to claim your assets if you default payments.

The other loan is the unsecured loan which the lender has no claim on your assets if you default payments. If your assets or home isn’t put at risk, then the best solution for you to manage your loans would be debt consolidation.

  • The amount of money you will pay back monthly

Debt consolidation is made easy by most debt consolidation firms offering lower monthly repayment rates. If the reason why you need to consolidate your loans is the inability to repay the current high monthly rates, then you may consider getting a consolidation plan from the best debt consolidation firm around you.

So, if you can keep up the rates offered after consolidation, then you may take up debt consolidation as an option. However, when your monthly interest payments go up, then you should reconsider the debt consolidation plan as it only means that you will repay more monthly.

  • If you wish to change your spending habits

If debt consolidation is the only way for you to minimize your spending and maybe even save more, then you should call number 1 debt consolidation company to help you out. It is important to make such a decision after thoroughly evaluating the risks involved.

For instance, a zero percent promotional credit card loan consolidating all your credit card balances and other loans works if you wish to stop spending haphazardly, and if you wish to repay all your debts within a specific duration.

  • If the lengthened repayment duration will not cost more

Extended repayment periods stand out as the catch behind consolidation. Most plans involve extending the time frame for repayment to reduce the monthly repayment rate. If this is the case with you, then how beneficial is consolidation? In such cases, you should reconsider your repayment plans.

  • Will you save any money?

This is what most people fail to ask when considering debt consolidation. This is because they think it as an impossibility. It isn’t. Debt consolidation reviews from the best companies show that you can save up money when repaying your loans within the same repayment periods, at a lower interest rate. This is what you should look out for. If your $10,000 dollar loan costs $3,000 dollars in interest and fees under consolidation when you are currently paying around $4,200 in interest and fees, then consolidation is appropriate.

  • How much is charged in fees and charges?

The terms and conditions set by some consolidation firms are really high and they will result in higher monthly repayments. These plans should be shunned.

Your financial consultant should also shed light into the headline interest rates known to cost more as arrangement fees.

In conclusion, the best repayment plan after debt consolidation must save you some money, reduce your monthly repayment rates, it mustn’t cost more in the future and your property or assets shouldn’t be at risk of being repossessed. You may also consider other strategies like cutting down on your spending; live within your means. If all the above concerns are favorable, then debt consolidation would be your best option.

4 Types of Debt Consolidation Loan Options

The year has just begun and you probably want to progress without any additional debt. Perhaps you wish to get a hold of your finances this year and cut down on spending. If this is so, then you should consider looking for a debt management system.

Besides there being a big number of credit management service providers, it would be prudent if you’d consider debt consolidation. This is a debt refinancing process that involves taking up a big loan to pay off small outstanding loans and debts. This has been shown to be an effective consumer debt management system and is therefore common in personal finance institutions.

Debt consolidation loans make debts manageable since you will be servicing one loan rather than multiple small loans and debts that can slip off your mind when due. Often, there are lower rates charged on the debt consolidation loan compared to the average rate on the multiple debts.

So, do you think that debt consolidation is your way out of a financial crisis? Do you know the most preferable or suitable debt consolidation process? Here are the 4 main types of debt consolidation processes:

  1. Consolidation through a debt consolidation company

Statistics show that there is an ever increasing amount of consumer debt. To help many people in need of debt relief or management solutions resolve or manage this, there has been a subsequent rise in the number of companies offering personal finance solutions.

One of the solutions or services provided by such companies is debt consolidation. You will easily come across firms exclusively offering debt consolidation. What happens is that you will receive advice on debt management alongside the loan. The company often pays off your creditors then you are left with one loan owed to the company. This gets your creditors off your neck for good, as long as you don’t accumulate any more debt.

The reasons why you should consider this option is because the resultant (new) loan charges lower monthly repayment since they’re charged lower interest rates. This option often saves money at the end of the repayment period.  If your biggest challenge has been forgetting to pay loans on time, the debt consolidation loan leaves you with only one loan that you can’t forget thus avoids default penalties and late fees associated with forgetting some payments.

Unfortunately, you will not enjoy the lower interest rates on your consolidated loan if your credit rating is poor.

  1. Balance transfer consolidation

Say you have several accumulated credit card debts; wouldn’t you want to transfer all those debts into one card with zero interest rate chargeable? The balance transfer consolidation option is an effective way to clear your credit card’s negative balances if you are certain that you will change your lifestyle and spending, and if you are certain that you will have repaid the debts fully by the end of the zero-interest rate period.

Most companies offering balance transfers on credit card balances give between 6 and 18 months. During this period, you should be able to repay the balances. This is an affordable option compared to normal repayment of a high interest credit card loan. You will, however, pay a transfer fee that is often between 2-5%.

  1. Home Equity Line of Equity Loan (HELOC) Consolidation

A debt consolidation loan is either secured or unsecured. HELOC consolidation is an example of a secured debt consolidation loan. In this case, your home will be used as collateral for the loan borrowed. This solution is effective because you can get a loan of up to 80% the value of your home.

Unfortunately, they do not have fixed terms since the value of your property is somewhat determined by the market. There is no control over external factors in finance. By securing the loan against your home, you will enjoy lower interest rates on the loan. Even though this rate will vary, it will be lower nonetheless. The other downside of HELOC consolidation is that you risk losing your home if you default payment.

  1. Peer to Peer (P2P) consolidation

This is one of the new debt consolidation processes. This is an option that allows people to lend money to each other through P2P lending companies. The P2P companies connect you with people with money they are willing to invest. The investor gains through the favorable interest rate that is charged on your debt consolidation loan. Besides the returns on investments and interest on the money lent, lenders also get satisfaction from helping people in need.

Compared to the loan you will get from the bank or any other financial or credit institutions, P2P loans charge lower interests.

The market is filled with all these options though caution is crucial when shopping for a debt consolidation loan. Some of the precautions you must exercise include:

  • Steering clear of scams

Avoid highly aggressive sales agents advertising deals that are too good to be true. You should also not sign contracts with companies that ask for any form of deposit for registration. Trust your gut instincts.

  • Work with reputable companies

Reputable companies have been in the market for a long time and they will offer the best advice. The chances of the company disappearing with your money are less and you can hold someone responsible. Look out for reviews, comments, and complaints on the company website and review sites to know if a company is trustworthy.

  • Get credit counseling

The reason why you are in debt is probably poor financial management. Do not get to the end of the year with more debt on your back. Create a budget and stick with it. Live within your means.

In conclusion, attaining financial freedom is a challenging but achievable vision. Talk to your finance planner and determine your best debt consolidation process. Change your lifestyle and learn to live without any debt on your back. You should also undertake sufficient research before signing contracts. Follow the advice above and your financial freedom goal will come true at the end of the year.

Recoup Your Finances by Availing Debt Consolidation Loan

It is not that you always need to be neck deep in loans to make you feel so much uncomfortable that you seek ways to get out from it. Even if the loan amount is not much of concern for you there is yet something very important that you want to protect. It is your credit rating that you can hardly allow to be dented. Modern lifestyle is highly dependent of debts for decent living. Debts have been wound around our lives and whether you like it or not, at some point in time you have to turn to it. Therefore, you know very well how good credit rating can make you a good candidate for getting loans. Hence, the need to protect it from getting tarnished, in case you happen to be defaulting with existing loans.

Issues with multiple creditors

Repaying capabilities are not always the reason why people fail to keep up with loan repayment schedules. Although it might be true for some people, most point to the troubles that they face in servicing several creditors. It is common nowadays that people use several credit cards and maintain several loan accounts concurrently. Each account has its own payment dates and consequently there could be several dates in a month when payments have to be made against the loans. This can become quite tasking for two reasons — firstly, remembering the dates is often difficult and secondly, keeping track of finances and allocating funds for timely payments needs close attention. Failed payments could directly affect credit scores that can further weaken the prospects of securing fresh loans.

Reasons for failure

On analyzing the situation that has been described above it will be easy to understand that the problem crops up from the number of creditors that have to be handled.  Each credit account has to be monitored individually to ensure that billings are correct because there are instances when some errors can creep in and add to your woes. Going through many bills every month at different times and matching with various payment dates are no less challenging. Moreover, funds have to be allocated to the accounts at the right time to effect payments. Taking everything together, it is a cumbersome task that can be quite stressful and even difficult to manage that often might lead to missed payments.

Looking for remedy

Considering the realities on the ground, it has to be accepted that you have to find out ways of living more comfortably with credits and managing debts in a smarter way. Although it would be ideal to seek a debt free life but it could be really hard to make it happen.  Rather, finding methods of coping with debts in a better way is a more practical way of tackling the problem.  There are three financial options that you can try out to resolve the problems faced with multiple creditors. All these are aimed consolidation of loans – dealing with a single loan account that replaces many. Read on to know about your options of consolidation.

Take personal loan

Taking out a personal loan can be thought about but it is far from practicable to make it work. Personal loans entail much higher rate of interest that could leave you paying more than what you have to pay now. The terms of payment may not also be favorable. It can affect your affordability and defeat the purpose of consolidation of loan accounts. Moreover, personal loans are given for smaller amount and the sum that it fetches might not be enough to pay back all other loans.

Line of credit against home equity

If you own a house, you can think about converting its equity value into a line of credit for obtaining some money to pay back other loans. While getting the amount you need is not a problem, the interest is also lower and the terms are also extended, it needs careful consideration to decide using this facility. The loan that you get is only for a portion of the home equity with the major part remaining unutilized. Since your home has the potential of bailing you out from much bigger financial crisis, exercising the options for credit consolidation may not be a wise decision.

Get a fresh loan specifically for consolidating debt

Loans are available for various purposes and are named according to it. There are home loans for home making, vehicle loans for buying cars and there is even a special category of loan for debt management which is known as debt consolidation loan. This is perhaps the most used option because it comes with some benefits that are just suited for the exercise. Unlike personal loans, this does not have any limits attached to it and can cover any amount of outstanding loans. It offers lower interest rates and favorable terms can also be negotiated. With the right attitude of using this option correctly to wipe out other loans, it is the perfect solution for consolidation that you have been looking.

Getting the best loan

In order to get the best loan for consolidating debts, there are some methods to follow.

  • Shop around – The money market is highly competitive and you should get a good bargain for the new loan that you will be taking. Do not be carried away by the face value of offers. Do a thorough analysis to understand what your benefits are and then shop around to get the best bargain.
  • Unsecured loan – Look for loans that are unsecured – that is available without asking for any collateral security.
  • Interest cost – While shopping around make sure that you get the lowest interest with favorable terms. This would help to save money through consolidation.
  • Costs and fees – Know about the costs that are associated with the loan – like closing costs that some companies charge. Also know about the fees to be paid, if any.

Conclusion –

Once you have identified the new lender, it is time to make use of the opportunity for not only consolidating the loans but using it to your advantage for recouping your finances.

Debt Consolidation and 9 Other Debt Repayment Strategies

Debt is a necessary evil for most people. Unfortunately, you will find that not everyone gets into debt by planning to take a loan and having a repayment plan. For most people, running into huge debts is a result of poor planning, financial misfortunes, and living beyond one’s means. For most of these cases, the problem recurs especially when the root cause of the problem isn’t identified and weeded out.

You may think that debt affects individuals and households only but the truth is that it affects businesses too. By spending too much on overheads while making poor investments, the company will most likely run into debt. Below are some of the debt management or repayment strategies:

  1. Creation of budgets

Everyone should know how to create a budget and if you don’t, then you should research online or even get a personal finance consultant or a credit counsellor who will guide you through the process of creating the budget.

There also are budgeting apps you can take advantage of and if you don’t fancy the apps, try out the traditional Excel spreadsheets. You will find that there are many miscellaneous expenses eating your income and savings resulting in debt.

  1. Deal with the high-interest debt first

The problem with a high-interest debt is that it puts your finances and your business into a high risk. These debts also take the biggest chunk off your income and can easily deplete your resources. If you have credit cards and one of them has a high interest repayment rate, you should pay it off before the rest because it increases your payment on the credit card with the highest APR. This will happen as you go on paying offthe debts with lower interest rates.

Student loans are often low interest debts that can be easily repaid once the high-interest credit card debts have been repaid. In some instances, it is allowed to transfer the student loan balances to the zero interest credit cards.

  1. Don’t brush off balance transfers

The most effective way of reducing your debt is by taking advantage of balance transfers. In most cases, the transfers are available for credit cards. Most credit card transfers are zero-interest rate transfers for balances and you can use this for the card with the highest interest rate on debt. You will be given a limited repayment duration during which the zero-interest rate is applicable. Take advantage of this to repay all your debts then.

  1. Always pay more than the minimum balance given

To reduce your debt significantly, always strive to pay more than what the minimum balance is on the monthly bank or credit card statements. When you do this, you get to prolong the payoff strategy. Whenever you can pay off the cost of the new office equipment with more than necessary monthly, do so. This strategy gets you out of debt faster.

  1. Debt consolidation

Is your company having many creditors to deal with monthly and is it becoming tougher to deal with all the debt monthly? Debt consolidation is a debt restructuring program that takes up all your current debts and repays them when you take up one loan to service. Instead of servicing many debts and dealing with several creditors sending you different invoices monthly, go for debt consolidation.

Fortunately, there are many debt consolidation firms around you with programs that suit you. With debt consolidation loans made easy, you can rely on the debt consolidation companies and credit counsellors for the best and the cheapest loans. You should however take your time researching on consolidation rates and fees. Don’t fall into scams and ensure that the company is certified and with verified positive reviews.

Debt consolidation is suitable for loans, mortgages, car loans, personal loans, student loans, outstanding bills, rates, taxes, etc.

  1. Debt settlement

Are you struggling to repay all your creditors who are out for blood? Perhaps you should take up debt settlement as a way to repay the owed amounts. Find a debt settlement company, talk to a credit counsellor, and determine how much you can save up monthly.

The debt settlement company will negotiate with your creditors and have them agree to a one-off payment of a percentage of the owed amount. You will contribute to an account set up by the debt consolidation company monthly.

  1. Cut down on spending

The cause of too much debt is unnecessary spending. To repay your debt and have a little extra money in your savings account monthly, you have to cut down your spending. Spending hurts your credit and your income significantly. Only buy what you need and avoid splash shopping. Stop carrying your credit cards around and save more. Practice frugality for financial freedom.

  1. Don’t waste your bonuses

Yes, you have earned the bonuses received, but when you have so much accumulated debt, it is important for you to consider using the earned work or project bonus on paying off debts. You may use the loan to pay off equipment debt, accrued leases, or even a student loan. Lump-sum payments attract discounts in most cases.

  1. Sell off unwanted items

Most of the things you buy are totally unnecessary. If you want to finish the year without any debt, spare the weekend and declutter. You will be amazed by the number of high-value but unnecessary items in your office or home. Auction these items online or have a garage sale. There are friends or acquaintances that may need the items, so sell them off and use the money to reduce your debt.

  1. Try micro-lenders and online lenders

If your business is in dire need of financing, but you have a poor credit history and score, you may consider micro lenders and online lenders. There are many legitimate lenders online or around you but you must research first.


In conclusion, there are many options for debt management but their effectiveness depends on your decisions and your willingness to stick to the programs. You should also change your habits, cut down spending and for a business, this might mean downsizing or allowing workers flexibility in working thus they can work from home and you won’t need a lease.