You Have Eligible Loans Totaling Over$ 7, 500

Category: Finance, Credit.

As children, most individuals can hardly wait to grow up and become independent.

Unfortunately, young people entering adulthood soon learn: if it seems too good to be true, it probably is not a reality. The idea of not having to answer to Mom or Dad, and doing whatever they please is a worthy goal. Now, instead of Mom and Dad taking care of all the living details youngsters usually take for granted, the car payment is due, the credit card bills are piling up, and student loans are going to plague the budget for at least the next ten years. As with any major decision, the choice to consolidate loans should only be made after considering both the drawbacks and the benefits. Instead of being frustrated with the task of keeping track of all the various bills, and the difficulty of establishing a workable budget, consider consolidating loans and eradicate debt in a timelier fashion. First, decide if consolidating is necessary.

Unless the debt is almost paid off, professionals will probably being the process to consolidate loans, helping an individual eradicate his/ her debt sooner. For individuals with a mountain of debt, a consumer credit counseling agency will greatly help in making the proper financial decisions. Probably the most frequent reason to consolidate loans is college. Many students will have acquired two types of loans: subsidized and unsubsidized loans. Student loans are costly, and the recent post- secondary graduate will be required to start repaying the debt six months following graduation. The unsubsidized loan starts accruing interest from day one.

Either way, two separate payments, two separate loans, unless the individual decides to consolidate. Conversely, the subsidized loan starts accruing interest after graduation. However, if the money lent is less than$ 7500, or scheduled to be paid in full, in the near future, consolidation may not be possible, or even worth the effort. According to the information found on the web, the following must apply: You are in your six- month grace period following graduation or you have started repaying your loans. In order to consolidate loans, students should meet specific criteria. You have eligible loans totaling over$ 7, 500. You have not already consolidated your student loans, or since consolidation you have gone back to school and acquired new student loans.

You have more than one lender. Once the determination is made concerning the qualifications for consolidated loans, the individual needs to understand the benefits of consolidating loans, even if juggling the bills is not a problem. Consolidated loans are often the answer to financial stress. Consolidated loans are simply as smart move for many individuals, especially the graduated student who is struggling to pay off student aid while support a family. As a result of the high cost of living, and the availability, poor budgeting of buying on time, many Americans soon find themselves struggling to meet each month s financial obligations. So, other than bankruptcy, and seven years of bad credit, consolidated loans can eradicate debt faster and help individuals find some financial relief. One extra car part, trip to the doctor, or any other unexpected expense, and people begin floundering in a sea of bills.

For example: a person has maxed- out his/ her credit cards, the winter months have been exceptionally cold, and the heating bill has truly taxed the budget. Before the individual throws in the towel, credit counselors can often provide services to ease the stress of debt, by granting a consolidated loan. Now, a major illness has left a mound of hospital bills, and no money is left in savings or the checking account. How? If counselors can assure the lender bills will be paid in a timely manner, most companies will gladly forgive most, of the interest, if not all and penalties attached to a bill, since a consolidated loan is pending. Counselors have connections with the creditors. Why?

After receiving the payment, consumer credit establishments divide up the monies, and pay all the lenders a pre- established amount monthly. When an individual receives a consolidated loan from a counseling service, he/ she will pay one set amount to the service. Thus, the company is assured the money owed will be paid. Now, for the former student faced with paying for financial aid used during college, consolidated loans are the answer to impending financial hardship. Now, the individual only has to remember one bill, usually at a lower interest rate, leaving enough money for the day- to- day living expenses. For example, many students have used both unsubsidized and subsidized student loans. The mere thought is depressing!

Six months after graduation, the bills start arriving every month, for the next 10 years, if necessary. However, by consolidating the loans, before the sixth month grace period is up, not only will one bill arrive monthly, the loan can be extended for 10- 20- 30 years, depending on the amount and the circumstances. Thus, the loan repayment, for some borrowers may be reduced by as much as 54% . In addition, the interest rates are lower. One bill to pay. The loan can be extended for a longer period of time, if needed. Half the payment is required each month.

What more needs to be said? So, whether an individual has simply gotten too deep in debt, or facing the inevitable repayment of student aid, consolidated loans can eradicate debt faster or with less financial strain, no bankruptcy necessary.

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