If you are in debt, it brings up your financial problems all the time. At one time in your life, you thought that all your bills would be paid in a week or even in the next month, until you realize that you will never see them paid. When you begin to realize that you are constantly living with this problem, you get a great deal of emotional courage and self-doubt and start practicing your first step to being able to manage your own financial affairs at a better rate.
Obtaining Wiser Balance Transfers
Your ability to build, maintain, and build the credit rating a little by little brings you a big step forward for you. In order for your credit score to be of use to today’s business world, you need to apply for a credit card at a bank or financial institution, obtain an overdraft facility, and maintain a good relationship with your bank.
While your current banking institution or bank may not be able to help you with your credit card and it seems like it isn’t easy for you to manage your finances you need to get in touch with your bank and attempt to negotiate a satisfactory solution. Most banks and financial institutions do not like requests for balance transfer extensions, so you may want to approach them directly, perhaps with a request for a debt consolidation loan. If they are in a position to help you, it would be likely that they will need your assistance in the process of consolidating their debts.
Having a bank know about these new strategies that may be underway is essential since in many cases they will not have the authority to refuse the requested services as you wish. Additionally, if they are operating under a lot of pressure when it comes to providing and servicing your credit card, you will likely see some of the approval which they receive, as your application must meet the following qualifications:
It must be in writing. Your bank must be current with your payment and check-certification, so there must be a current communication from them to inform you that the request has been received and forwarded.
It must include the following in its terms:
2. Revolving balances (i.e., the amount of the outstanding balance owed to the creditor on a revolving credit card account);
3. Any other debt services performed before tax by the creditor;
4. Make a joint contract with the creditor (i.e., you and the creditor must provide a written statement);
5. Arrange to pay the reduced debt in full or in part, whichever is less (after deducting other charges, such as collection or settlement costs);
6. Make a joint statement to the creditor and to the department or agency that maintains the collection bureau;
The requirements for approval of a debt consolidation application include a quick inspection, a detailed discussion of the debt itself, a reconciliation of the debt to available credit, and a full analysis of the debt to determine whether it is of lasting value to your financial health.
If you are considering getting assistance in consolidating your debts, it will make sense to contact your financial institution first in hopes of getting the services you desire.
Choosing The Best Debt Consolidation Loan For You
Are you looking into a debt consolidation loan for your credit card bill consolidation? Consider the following factors before you make a final decision:
Interest and Fees – What is the interest rate? Will the introductory APR on your bills be very expensive or very affordable? Will you be paying an extra amount per month in interest for a longer period? Will you have to extend the loan or will you just be getting a higher interest rate?
Interest rate vs. Interest rate consolidation?
If you are looking into debt consolidation, you should first assess the interest rates you are receiving on your current loans. In most cases there are two types of loans. You have a fixed rate and you are looking at variable rate of interest. After comparing low rates, fixed rate loan offer is what most companies are offering. You will pay a higher rate if the unpaid balance is part of regular loan, and a lowered rate will keep it paid off if the balance is part of your new loan.
For example, if you have two credit cards that you are using simultaneously, one with a fixed rate and one with a variable rate, you will be seeking a low rate with two cards. Your fixed rate will be 25% but the variable rate is an additional 4%. The interest rates will be different in different type of loan.
Another thing that every lender should consider when looking into debt consolidation loans is the APR. Interest rate alone is not the best way to go.