Brewery industry – Lang Creek Brewery http://langcreekbrewery.com/ Fri, 04 Nov 2022 16:00:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://langcreekbrewery.com/wp-content/uploads/2021/10/icon-7-120x120.png Brewery industry – Lang Creek Brewery http://langcreekbrewery.com/ 32 32 The dirty secrets of debt consolidation loans revealed https://langcreekbrewery.com/the-dirty-secrets-of-debt-consolidation-loans-revealed/ Fri, 04 Nov 2022 16:00:00 +0000 https://langcreekbrewery.com/the-dirty-secrets-of-debt-consolidation-loans-revealed/ Things If you are considering a debt consolidation loan, you need the advice of a financial mentor. Rob Stock is a Stuff business journalist specializing in money and consumer issues. ANALYSIS: The dirty secrets of debt consolidation loans have been revealed in documents sent to the government. They can be interpreted as sending a clear […]]]>
If you are considering a debt consolidation loan, you need the advice of a financial mentor.

Things

If you are considering a debt consolidation loan, you need the advice of a financial mentor.

Rob Stock is a Stuff business journalist specializing in money and consumer issues.

ANALYSIS: The dirty secrets of debt consolidation loans have been revealed in documents sent to the government.

They can be interpreted as sending a clear message to borrowers who are considering taking out one: you are experiencing a financial emergency and need expert help.

A debt consolidation loan is a loan that people take out to pay off their other debts. The theory goes that one loan is easier to manage than multiple loans.

But if you are in debt, it may be time to question your own judgment and financial skills, and get free, independent advice from a budgeting service.

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The dirty secrets of debt consolidation loans have been exposed in submissions sent to the government by financial mentors from budgeting departments across the country opposed to plans to make it easier for lenders to sell.

Some mentors said they had never seen a debt consolidation loan that made things better for a borrower.

They said a typical trick of lenders was to refinance short-term debts into a single, longer-term debt consolidation loan, on which they could earn interest over a longer period.

Financial research website Moneyhub has compiled 12 credit card “sacred rules” that every cardholder should follow, if they don’t want to fall victim to easy and costly consumer debt.

Borrowers were charged new loan fees, and sometimes lenders sold them low-value loan repayment insurance, or waivers, which are like insurance, except they’re not covered by law. which are supposed to keep insurers honest and financially viable.

Mentors said unsecured loans were sometimes refinanced into debt consolidation loans secured by property, and not always the property of the borrower.

“We also see many debt consolidation loans secured by the assets of other family members. This has a huge negative impact on family dynamics and everyone’s mental well-being. We call it STD – sexually transmitted debt,” said Andrew Henderson and Charlotte Whitaker of the Dunedin Budget Advisory Service.

Collateral could be “clawed back” by lenders if borrowers do not repay.

Some mentors reported seeing interest-free debts such as buy now, pay later (BNPL) loans, family loans, some debt collection debts, education debts, health debts, electricity debts and even interest-free debts owed to the government refinanced into debt consolidation loans at higher interest rates.

Some mentors even claimed that “irresponsible” loans, granted to borrowers who could not reasonably be expected to repay them without suffering hardship, were converted into new loans through debt consolidation.

Under responsible lending laws, these irresponsible loans should be unwound, not sneakily converted into new loans.

The dirty secrets of debt consolidation loans have been exposed in submissions sent to the government by financial mentors from budgeting services across the country.

Things

The dirty secrets of debt consolidation loans have been exposed in submissions sent to the government by financial mentors from budgeting services across the country.

The mentors also said that sometimes the loans repaid by debt consolidation loans were on revolving loan facilities like BNPL accounts, credit cards or store cards.

These accounts were not always closed, and vulnerable and desperate households ended up having access to even more debt.

Henderson and Whitaker said, “In our view, a debt consolidation loan is not a loan, but a product used to achieve client betterment.”

Where it worked, it worked with low-interest, interest-free debt consolidation loans from nonprofit lenders like Ngā Tangata Finance and Good Shepherd, they said.

Lenders simply saw it as another way to keep whānau in debt, for a longer period, with collateral and no other options, they said.

The unequivocal conclusion is that debt consolidation should be approached with extreme caution.

GOLDEN RULES:

  • Debt consolidation loans are a symptom of financial distress
  • Beware of the Dirty Tricks of Debt Consolidation
  • Get independent advice

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Best Debt Consolidation Loans November 2022 https://langcreekbrewery.com/best-debt-consolidation-loans-november-2022/ Tue, 01 Nov 2022 07:00:00 +0000 https://langcreekbrewery.com/best-debt-consolidation-loans-november-2022/ What is a debt consolidation loan? A debt consolidation loan combines multiple unsecured debts — such as credit cards, medical bills, and payday loans — into one fixed monthly payment. A debt consolidation loan is usually a good idea if the interest rate on the loan is lower than the combined rates of your existing […]]]>

What is a debt consolidation loan?

A debt consolidation loan combines multiple unsecured debts — such as credit cards, medical bills, and payday loans — into one fixed monthly payment.

A debt consolidation loan is usually a good idea if the interest rate on the loan is lower than the combined rates of your existing debts. With this lower rate, you’ll save money on interest and possibly pay off your debt faster.

How to Choose the Best Debt Consolidation Loan

When deciding between debt consolidation loans, compare these factors.

Annual rates in percentage: The APR of the loan represents its true annual cost, as it includes all fees and interest charges. Rates vary based on your credit score, income, and debt-to-equity ratio. Use APR to compare several loans. Choose a low rate with monthly payments adapted to your budget.

Creation costs: Some lenders charge assembly costs to cover your loan processing costs. These one-time fees typically range from 1% to 10% of the loan amount and are either deducted from your loan proceeds or added to the loan balance. If the fees are deducted from your loan proceeds, you will need to ask for more than the sum of your debts in order to cover the fees and still have enough to pay your creditors.

Characteristics of the lender: Some lenders offer user-friendly features such as direct payment to creditors, which means that the lender pays off your old debts once your loan is closed, which saves you this task.

Other features worth buying include free credit score monitoring and hardship programs that temporarily reduce or suspend monthly payments if you face a financial setback, such as job loss.

How to qualify for a debt consolidation loan

Build up your credit: Loan approval is based primarily on your credit score and repayment capacity. It may be possible to get a debt consolidation loan with bad credit, but borrowers with excellent credit (720-850 credit score) have more loan options and can qualify for lower rates. If you have fair or bad credit (less than 690 credit points), it can pay for build your credit before applying for a consolidation loan.

Apply for a joint or co-signed loan: Adding a co-borrower or co-signer to your application can help you qualify for a debt consolidation loan that you couldn’t get on your own due to bad credit or low revenue. In a solidarity loanboth borrowers have equal access to the funds, unlike a co-signed loan, where only the main applicant does. Co-borrowers and co-signers are responsible for missed payments.

Compare the prices: Compare the rates and terms of several lenders before applying for a debt consolidation loan. Most online lenders allow you pre-qualified with a gentle credit inquiry, which has no impact on your credit scores.

Prepare a debt consolidation loan

Plan ahead: Before financing your loan, create a budget which allocates a percentage of your income to debt repayment.

Limit expenses: Avoid big spending on your credit cards because you repay the debt, but do not close any of the cards. Canceling credit accounts can hurt your credit score.

Commit to long-haul: Debt consolidation is a smart move for many, but it’s important to remember that debt doesn’t go away — it goes somewhere else. Most debt consolidation loans offer terms of two to seven years, so be prepared to stick to your monthly payments during that time.

Will debt consolidation hurt my credit rating?

Consolidating your debt with a personal loan can help — and hurt — your credit score. When you use the loan to pay off your credit cards, you reduce your credit utilization, which measures how much of your credit limit is tied up. Reducing your credit usage can help your credit.

On the other hand, applying for the loan requires a rigorous credit check, which can temporarily affect your credit score. And if you roll over and rack up new credit card debt, your credit score will suffer.

Late payments on your new loan can also hurt your credit score, while on-time payments can help.

How to Pre-Qualify for a Debt Consolidation Loan

Pre-qualifying for a loan online can give you access to potential loan terms, including the loan interest rate. You can pre-qualify with lenders on NerdWallet to compare offers and find the lowest price.

Other Ways to Fight Debt

A debt consolidation loan is not your only option for controlling your debts.

Credit card with 0% balance transfer: For borrowers with good to excellent credit (credit score of 690 or higher), the transfer of debt to a 0% Balance Transfer Card can be a good option, as long as you can pay it back during the introductory period.

Credit advice: Non-profit organizations provide credit counseling, which includes helping you create a debt management plan. Similar to other consolidation products, these plans consolidate your debts into one manageable payment at a reduced interest rate.

Debt repayment strategies: If you don’t know how to tackle debt, you may not need to consolidate. The debt snowball and avalanche of debt are two common strategies for paying off debt. The snowball method focuses on paying off your smallest debt first, building momentum as you go. The avalanche focuses first on paying off the debt with the highest interest rate, then applying the savings elsewhere. Both can increase your payment speed.

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The Practical Benefits of Debt Consolidation Loans » FINCHANNEL https://langcreekbrewery.com/the-practical-benefits-of-debt-consolidation-loans-finchannel/ Fri, 28 Oct 2022 07:57:48 +0000 https://langcreekbrewery.com/the-practical-benefits-of-debt-consolidation-loans-finchannel/ Everyone knows that managing debt can be a challenge. It’s easy to get carried away with the lure of credit, and before you know it, you’re facing a mountain of repayments that can seem impossible to keep up with. Once the stress of debt begins to take a toll on your personal life and your […]]]>

Everyone knows that managing debt can be a challenge. It’s easy to get carried away with the lure of credit, and before you know it, you’re facing a mountain of repayments that can seem impossible to keep up with.

Once the stress of debt begins to take a toll on your personal life and your health, it’s time to consider debt consolidation. With this type of loan, you can combine all of your existing debt into one monthly payment, making it much easier to manage your finances and giving you more time to focus on the things that matter.

In New Zealand, most people opt for personal loans to consolidate their debts. This type of loan allows you to use the funds as you see fit. Most lenders will allow you to spread your repayments over a longer period to make them more manageable.

If you’re ready to take control of your finances and simplify your repayments, contact a reputable lender today to see what debt consolidation loans can do for you!

Read on to understand the practical benefits of debt consolidation loans.

1. More manageable refunds:

The benefits of debt consolidation loans are huge! They offer a convenient way to combine your debts into one manageable monthly payment. Not only does this save you the time and hassle of keeping track of multiple invoices and due dates, but it also allows you to spread out your repayments over a longer period. However, finding the best debt consolidation loan provider in new zealand shouldn’t be a problem either. With the help of any reputable online loan service, you can quickly and easily compare different options to find the right one for your situation. However, look for services with a good track record of customer satisfaction. For example, Nectar helps Kiwis find the best deals on financial products and offers a range of high-quality loan providers.

2. More time to focus on what matters:

When you’re busy juggling multiple debts, it can be hard to find the time to focus on other things that are important to you. Whether it’s spending time with family, getting a promotion, or battling a serious health issue, debt stress can significantly affect your mental and physical well-being. Debt consolidation loans can help you regain control of your finances and free up more time for the things that matter. Another practical benefit of debt consolidation loans is the flexibility they offer. You can use your funds as you see fit and make repayments over a longer period to reduce the financier charge.

3. Flexible repayment options:

Many of the most reputable lenders offer a range of flexible repayment options to help make your loan more manageable. For example, some lenders will allow you to extend your repayment period if you need more time. And others will offer a lump sum payment option if you want to pay off your loan early. Whatever your situation, there’s probably a lender who can help. Above all, the right debt consolidation loan will save you time and money in the long run.

4. A chance to get back on track:

Whether you’ve been through tough times, need a helping hand, or want to plan for the future, this can be a great way to take control of your finances and get you back on track. Remember to choose a reputable lender with a good reputation and competitive rates to ensure you get the most out of your loan. Also, don’t forget to read the fine print and fully understand your obligations as a borrower. And don’t try to hide your financial history – tell the lender everything so they can help you find a loan that’s right for you. The reason is simple; it all starts with a loan. So, do your research and make the right decision today!

5. Manage your debts intelligently:

Debt consolidation loans can be a great tool to help you manage your finances and settle your debts wisely. These loans offer a convenient and convenient way to combine your debts into one, saving you time, stress and hassle. Whether you need more time to make your repayments or want to pay off your loan sooner, many reputable lenders offer flexible repayment options to help you manage your debts. According to the statistics, more than two out of ten Kiwis have difficulty repaying or are even in arrears. You might feel overwhelmed with your debts, but debt consolidation loans can help you get back on track today. Another reason to consider debt consolidation loans is that they can help you reduce your debts and expenses, which means more money in your pocket.

6. Give yourself financial peace of mind:

A debt consolidation loan can give you more control over your finances and help you gain peace of mind. With flexible repayment options, you can simplify your repayments and save money in the long run with lower interest rates and fees. Sometimes all you need is a helping hand to get you back on track. Don’t let the stress of debt take over your life or hinder your progress. Try taking it one step at a time and consider debt consolidation loans to simplify your finances and give you financial peace of mind.

Summary

Once you start looking into debt consolidation loans, you’ll quickly realize the many benefits of using these handy, practical tools to manage your debts. Whether you need more time to make your repayments or want to pay off your loan early, these loans offer flexible repayment options that give you more control over your finances and help you gain financial peace of mind. . So if you’re ready to simplify your debts and regain control of your finances, don’t wait – contact a reputable debt consolidation loan provider today! But remember to do your research, read the fine print, and make the best decision for your situation.

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Best Debt Consolidation Loans of October 2022 – Forbes Advisor https://langcreekbrewery.com/best-debt-consolidation-loans-of-october-2022-forbes-advisor/ Tue, 18 Oct 2022 07:02:00 +0000 https://langcreekbrewery.com/best-debt-consolidation-loans-of-october-2022-forbes-advisor/ LightStream is a consumer lending division of Truist, which formed from the merger of SunTrust Bank and BB&T. The platform offers unsecured personal loans from $5,000 up to $100,000. Loan amounts vary depending on the purpose of the loan. Although a number of lenders offer loans smaller than the LightStream minimum, few lenders offer a […]]]>

LightStream is a consumer lending division of Truist, which formed from the merger of SunTrust Bank and BB&T. The platform offers unsecured personal loans from $5,000 up to $100,000. Loan amounts vary depending on the purpose of the loan. Although a number of lenders offer loans smaller than the LightStream minimum, few lenders offer a higher loan maximum. Repayment terms are available from two to seven years, making it a great option for those who want to spread the payment of large expenses over time.

In addition to offering attractive and flexible terms, LightStream does not charge any set-up, late payment or prepayment fees. The lender is also offering a 0.50% rate discount to borrowers who sign up for autopay – higher than most lenders with the same benefit – as well as a 30-day Lending Experience Guarantee to ensure borrower satisfaction, Covid-19/hardship assistance and rate-beating program. LightStream will beat a competitor’s interest rate by 0.1% for applicants who meet certain criteria.

LightStream offers loans in all 50 states, as well as Washington, DC, and Puerto Rico, and applicants can contact the lender’s customer support team seven days a week; current borrowers have access to customer support Monday through Saturday. And, although LightStream does not offer a mobile app for loan management, customers can access their account through LightStream.com.

Eligibility: LightStream recommends that applicants have good to excellent credit before applying for a personal loan. To increase their chances of approval, applicants must also have several years of credit history, including multiple account types, as well as an income stable enough to pay off current debts and a new LightStream loan.

LightStream does not provide prospective borrowers with the ability to prequalify for a loan. This fact, combined with the minimum credit score requirement, makes the platform a better choice for those with a strong credit profile. Applicants with excellent credit are also more likely to obtain favorable terms. LightStream does not allow co-signers, but potential borrowers can submit a joint application.

The loan uses: LightStream personal loans can be used for a variety of purposes, from buying a new car, RV or jewelry to paying for home improvements. However, LightStream really stands out because the loans can be used to finance land, timeshares, and so-called tiny homes. As with other major lenders, LightStream prohibits the use of its personal loans for post-secondary education expenses, business purposes, and illegal activities. Borrowers are also prohibited from using LightStream loan funds to refinance an existing LightStream loan.

Completion time : LightStream borrowers can receive funds the same day if the loan is approved by 2:30 p.m. EST on a bank business day. To receive same-day financing, the applicant must also review and electronically sign the loan agreement; provide LightStream with funding preferences and relevant banking information; and complete the final verification process, all before 2:30 p.m. on the day the loan is approved.

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Loans from some Idaho borrowers disqualified for forgiveness https://langcreekbrewery.com/loans-from-some-idaho-borrowers-disqualified-for-forgiveness/ Sat, 15 Oct 2022 10:00:00 +0000 https://langcreekbrewery.com/loans-from-some-idaho-borrowers-disqualified-for-forgiveness/ The Biden administration’s new plan disqualifies those with federal loans for family education. Olivier Contreras / SWIMMING POOL EFE A change to the fine print of President Joe Biden’s student debt cancellation plan could mean fewer Idaho borrowers are eligible for relief announced by the administration in August. The change affects more than 4 million […]]]>

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The Biden administration’s new plan disqualifies those with federal loans for family education.

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A change to the fine print of President Joe Biden’s student debt cancellation plan could mean fewer Idaho borrowers are eligible for relief announced by the administration in August.

The change affects more than 4 million student borrowers nationwide, with federal family education loans issued and managed by private banks but ultimately backed by the federal government.

After a recent decision by the US Department of Education to change its guidelines, NPR reports that about 800,000 of those borrowers will now be barred of the student debt relief program. The statesman reached out to the Department of Education for clarification on the numbers from NPR, but did not receive a response as of press time.

Randi Croyle, director of student financial aid services at the University of Idaho, told the Idaho Statesman that she thinks many Idahoans may have avoided being left out of loan forgiveness, but it is not a certainty.

Here’s what to know about the change, including how to check if your loans are now exempt from student debt forgiveness.

What types of student loans are eligible for forgiveness?

Until recently, the U.S. Department of Education advised borrowers with corporate-held FFELP loans that they could consolidate their loans into direct federal loans — the funds of which come not from private banks but from the government.

That would make those borrowers eligible for relief under Biden’s plan since the government owns the loans. But the department changed this language on September 29 fine-tuning the wording of the Ministry of Education website to say instead: “borrowers with federal student loans not held by ED cannot obtain one-time debt relief by consolidating these loans into direct loans”.

It is not entirely clear why the Biden administration made this decision, but according to some legal experts, it is a decision of avoid lawsuits from banks who might argue that the debt cancellation plan hurt them.

Are Idaho Student Borrowers Affected?

The FFEL program has been withdrawn since 2010 and there have been no new loans of this type since then. Additionally, according to Croyle, the University of Idaho, which has a 43% alum rate from Idahomoved to the direct lending program through the federal government in the 1990s.

“Most borrowers who borrowed in the ’90s probably repaid their loans, and that wouldn’t be much of a problem for the student,” Croyle said. “That being said, if they had consolidated their loans, most of the consolidation programs are done through the Department of Education and under the DL program, so I don’t see that having much of an impact. here.”

Borrowers who consolidated their loans into Federal Direct Loans before the change was made on Sept. 29 will still be eligible for the forgiveness, based on their income and other requirements set out in the Biden administration’s plan.

Croyle added that she wasn’t sure what kind of loans other schools in Idaho use, but direct loans are the most commonly used these days. Boise State University, the state’s largest institution of higher learning, offers federally subsidized student loans directly from the United States Department of Education.

For those caught up in the change in the Biden administration and no longer eligible for student loan forgiveness, Croyle offered other alternatives.

The Civil Service Loan Cancellation Program forgive the remaining balance on your loans after making 120 eligible monthly payments and working full-time for an eligible employer. There is also teacher and military loan forgiveness programs for those who qualify.

How do you know if your student loans are privately held?

Borrowers can go online to studentaid.gov and log in to check the status of their loans. If your loan does not appear on the federal site, it means that the loans are private.

You can also check via the National Student Loan Data System.

Idaho Statesman Related Stories

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Personal loans allow you to borrow for any purpose, but is that a good thing? https://langcreekbrewery.com/personal-loans-allow-you-to-borrow-for-any-purpose-but-is-that-a-good-thing/ Thu, 13 Oct 2022 14:00:36 +0000 https://langcreekbrewery.com/personal-loans-allow-you-to-borrow-for-any-purpose-but-is-that-a-good-thing/ Image source: Getty Images It’s kind of a blessing/curse situation. Key points Personal loan proceeds can be spent as you see fit. While it’s nice to have this flexibility, it could lead to you borrowing money for the wrong reasons. When you sign a mortgage, you are required to use the proceeds of your loan […]]]>

Image source: Getty Images

It’s kind of a blessing/curse situation.


Key points

  • Personal loan proceeds can be spent as you see fit.
  • While it’s nice to have this flexibility, it could lead to you borrowing money for the wrong reasons.

When you sign a mortgage, you are required to use the proceeds of your loan to finance the purchase of a home. And when you take out an auto loan, you have to use that money to finance the purchase of a vehicle.

Personal loans are much more flexible. With a personal loan, you can borrow money for any purpose.

Do you want to furnish your new apartment? A personal loan could make this possible. Need to repair your car? You can take out a personal loan and use that money to pay for new tires, brakes, or a working transmission.

Discover: These personal loans are the best for debt consolidation

More: Prequalify for a personal loan without affecting your credit score

But while the flexibility of personal loans is a good thing for borrowers, it also has a major downside. And that’s something to keep in mind if you’re considering getting a personal loan.

You shouldn’t borrow for an old reason

You can technically take out a personal loan and use the money to buy crates on junk food crates. But that doesn’t sound like the best idea, does it? Well, in that sense, it’s really not a good idea to use the proceeds of a personal loan to pay for a non-essential expense.

So, let’s say you’re looking forward to taking a vacation because it’s been several months since you escaped from your current city. While a vacation can do wonders for your mental health, it’s not a necessity. And if you don’t have the cash to pay for your vacation, then you better put those plans on hold, save up and then hit the road instead of taking out a personal loan to speed up your trip.

Likewise, if you recently got your own living space, you need some basics like a bed, kitchen table, and chairs right away. Operating without these key elements is not really reasonable, and therefore taking out a personal loan to pay for these purchases is not such a bad choice.

But that doesn’t mean you should take out a personal loan and use the money to buy designer side tables or furniture for your guest room. Instead, save up for furniture you don’t need right away (and besides, there’s nothing wrong with having guests sleep over your old futon for a few months).

Borrow carefully

Personal loans tend to charge less interest than other borrowing options, such as credit cards. But that doesn’t mean you should go into debt of this nature without thinking about the consequences.

In the end, a personal loan is still a loan. This means you’ll pay interest on the money you borrow and also risk ruining your credit score if you fall behind on your loan. And once your credit score drops, it can become difficult to borrow in an emergency.

If you are in urgent need of money, for example to repair a car that is not running, then do not hesitate to obtain a personal loan and repair. But be extra careful when taking out a personal loan so you can indulge in something you really should be saving up for instead.

The Ascent’s Best Personal Loans for 2022

Our team of independent experts have pored over the fine print to find the select personal loans that offer competitive rates and low fees. Start by reviewing The Ascent’s best personal loans for 2022.

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Are debt consolidation loans a good idea? https://langcreekbrewery.com/are-debt-consolidation-loans-a-good-idea/ Mon, 03 Oct 2022 18:54:18 +0000 https://langcreekbrewery.com/are-debt-consolidation-loans-a-good-idea/ When it comes to debt relief advice for Las Vegas residents, the idea of ​​going into debt to get out of debt might sound ridiculous. Still, it can be a useful approach – under the right circumstances. People have long used debt consolidation to pay off their debts more easily. However, what is good for […]]]>

When it comes to debt relief advice for Las Vegas residents, the idea of ​​going into debt to get out of debt might sound ridiculous. Still, it can be a useful approach – under the right circumstances.

People have long used debt consolidation to pay off their debts more easily.

However, what is good for some may not be suitable for others. This begs the question: when are debt consolidation loans a good idea?

What are debt consolidation loans?

We’ve all heard the old adage, “Don’t put all your eggs in one basket. While this might be good advice in general, when it comes to eliminating debt, ignoring it could be very helpful to you.

To make debt consolidation, a person takes out a low-interest loan in an amount capable of encompassing all of their high-interest debt and uses the proceeds to pay those debts in full. The person then ends up with a monthly payment, ideally at a lower interest rate.

This can lead to considerable savings and make it easier to manage their debts. In some cases, the payment on the consolidation loan may also be less than the total of all consolidated bills, which can free up cash for other purposes.

Types of Consolidation Loans

In most cases, people seeking Debt Consolidation Tips for Las Vegas Residents (or anywhere else for that matter) will look at one of three types of loans. These include personal loans, balance transfer credit cards and home equity loans.

Personal loans, also known as signature loans, are beneficial in that they generally have lower interest rates than the credit card debt that most people consolidate. They also come with a fixed interest rate and specific repayment terms. These features make it easier to budget around a personal loan.

They are called signature loans because the borrower’s signature is the only collateral required to obtain the loan. For this reason, you must have a very strong credit rating to qualify.

Credit cards with balance transfer, as the term suggests, moving credit card debt from one card to another. The incentive to do so usually takes the form of a period during which no interest will accrue (a zero percent transfer offer). Or an exceptionally attractive rate (such as one percent or less) will be applied during the “introductory period”.

The key to the success of this strategy is to avoid transferring more debt than can be repaid during the grace period. Interest rates usually skyrocket at the end of the introductory period. Additionally, some of these transfer offers will apply interest on the outstanding balance retroactively – up to the date of the transfer.

Home Equity Loans are generally the least expensive approach to consolidating debt. That said, care should be taken that the fees that come with a home equity loan don’t make this strategy more expensive than staying the course with existing debt. Home equity loan interest rates tend to be the lowest of these three options because home equity loans are secured by your home.

In other words, failure to pay a home equity loan could result in foreclosure. Many financial gurus advise against this approach because it swaps unsecured debt for secured debt. However, if you’re confident you can repay the loan, this is the best option of the three, assuming you have the equity in your home.

Is consolidation a good idea?

So, are debt consolidation loans a good idea?

As with so many other things in life, the answer is “It depends”. One of the most important things to remember when using debt consolidation is to avoid creating new debt until you have paid off the consolidation. Otherwise, you are just digging a deeper hole for yourself.

This can be especially tempting because suddenly all of your credit accounts will appear to have zero balances. However, it is important to recognize that taking out a consolidation loan does not pay off your debt. Rather, it simply moves it around to make it more manageable.

If you can easily meet the terms of the consolidation, this tactic may work for you. However, it will only make things worse if you can’t.

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Current student loan news for the week of September 26, 2022 https://langcreekbrewery.com/current-student-loan-news-for-the-week-of-september-26-2022/ Mon, 26 Sep 2022 23:31:57 +0000 https://langcreekbrewery.com/current-student-loan-news-for-the-week-of-september-26-2022/ Last week, Congress passed a landmark bill that would allow those with spousal consolidation loans to split their loans between the couple. If signed by President Biden, this bill could make hundreds of borrowers eligible for federal student loan forgiveness and solve many problems associated with the program. Here’s what you need to know about […]]]>

Last week, Congress passed a landmark bill that would allow those with spousal consolidation loans to split their loans between the couple. If signed by President Biden, this bill could make hundreds of borrowers eligible for federal student loan forgiveness and solve many problems associated with the program. Here’s what you need to know about this week’s student loan trends and how they may affect you.

1 current student loan trend for the week of September 26, 2022

1. Hundreds of borrowers with spousal consolidation loans could be eligible for loan separation

Prior to 2006, married student borrowers could combine their federal student loans into a single direct consolidation loan, often referred to as a joint consolidation loan or spousal consolidation loan. However, since the program closed in 2006, there has been no way for borrowers to reverse the process. This includes borrowers who have since separated and find themselves in financially detrimental situations, such as an ex-spouse refusing to make their share of the monthly payment.

Last June, the Senate approved the Joint Consolidation Loans Separation Act, which provided for the option of splitting joint consolidation loans into two separate federal direct loans. The remaining debt would be divided between the two borrowers according to the percentage that each borrower initially contributed. Last week, the House also passed the bill.

Now that Congress and the Senate have approved the bill, it’s up to President Biden to sign off on officially passing it.

How it affects student loans

If officially enacted, the Joint Consolidation Loan Separation Act could affect borrowers in multiple ways. On the one hand, it would allow borrowers in a prejudicial situation to be relieved of responsibility for the debt of their spouse, which means that they will only have to make payments on what they have borrowed from the origin (plus accrued interest). In the past, many of these borrowers may have continued to make payments on their spouse’s share of the balance to prevent the loan from defaulting and affecting their credit score.

Borrowers who split their loans could also become eligible for Biden’s student loan forgiveness measure, and they will have more flexibility in programs such as civil service loan forgiveness and income-contingent repayment, which limit both the extent to which joint consolidation loan borrowers could participate. .

Take away key

Congress passed the Joint Consolation Loan Separation Act, which would allow borrowers to split their joint consolidation loans. President Biden is expected to sign the bill.

Here’s how you can prepare

Whether you’re new to student loans or in the process of repaying, it’s wise to stay informed about how your student loan rates might change. In 2022, more opportunities for cheaper loans or loan forgiveness may open up; keep an eye on the Bankrate student loan news hub for the latest trends.

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Debt consolidation loan: what you need to know https://langcreekbrewery.com/debt-consolidation-loan-what-you-need-to-know/ Mon, 19 Sep 2022 16:14:00 +0000 https://langcreekbrewery.com/debt-consolidation-loan-what-you-need-to-know/ Debt consolidation loans combine multiple debts into one loan, which can potentially save you money. Getty Images If you’re struggling to manage your debts on multiple credit cards, a debt consolidation loan could simplify your monthly finances and help you regain control. When you take out a debt consolidation loan, you pay off multiple debts […]]]>
Debt consolidation loan application form with pen, calculator
Debt consolidation loans combine multiple debts into one loan, which can potentially save you money.

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If you’re struggling to manage your debts on multiple credit cards, a debt consolidation loan could simplify your monthly finances and help you regain control. When you take out a debt consolidation loan, you pay off multiple debts and replace them with a single loan with a fixed monthly payment. You might even be able to lower your interest charges and monthly payments.

If this sounds like something you could benefit from, consider talking to a lender. You can get a debt consolidation loan offer today.

What is a debt consolidation loan?

A debt consolidation loan can be used to pay off multiple debts, including credit cards, medical bills, and personal loans. Debt consolidation loans are a type of personal loan that you can use to combine multiple high-interest credit cards with one low-interest loan.

You may qualify for a debt consolidation loan of up to $100,000 with flexible repayment terms typically ranging from two to five years.

Why would anyone want a debt consolidation loan?

Taking out a debt consolidation loan may make sense if any of the following circumstances apply to you:

  • You want to pay less interest. If you have multiple high interest credit cards, you might consider debt consolidation into a personal loan with a lower interest rate. According to recent data from the Federal Reservethe average interest rate on a 24 month personal loan is 8.73%, which is well below the average credit card interest rate of 16.65%.
  • You want a specific repayment date. Credit cards offer a convenient way to borrow and pay off debt as you go, but if you only make minimal payments, you could stay in debt indefinitely. For this reason, you may want a debt consolidation loan to follow a repayment plan for a specific duration, with a specific end date when your final payment will bring your balance down to zero.
  • Your credit score is sufficient to qualify. Whereas personal loans are available to borrowers with below average credit, a higher credit score may qualify you for lower rates. Generally, the higher your credit score, the lower the interest rate you can receive. As a rule, you can benefit from advantageous conditions with a good credit scorethat begins with a FICO score of at least 670 or a VantageScore of 661 or higher.
  • You can pay off your consolidation loan in five years or less. Debt consolidation loans are installment loans that usually have a repayment term of two to five years. Of course, the longer you pay off the loan, the more interest you will pay. A debt consolidation loan may be a suitable option if you can minimize interest costs by paying off your loan in less than five years.

The advantages of a debt consolidation loan are manifold. Start saving money and getting out of debt by exploring your loan options now.

How to qualify for a debt consolidation loan?

Qualifications for debt consolidation loans vary by lender, but most lenders strongly consider the following eligibility factors.

  • Proof of income: Almost all lenders require you to meet a minimum income requirement to prove that you have the financial stability to repay your loan. Minimum income amounts vary by lender, and you’ll likely need to prove your income with pay stubs, bank statements, or tax returns.
  • Credit file and credit score: When a lender reviews your debt consolidation loan application, they typically extract your credit report and credit score to assess your credit management history. If your credit is below average, you might be better off taking steps to improve your credit before applying for a new loan.
  • Low debt-to-income ratio (DTI): Your debt-to-equity ratio (DTI) is another important criterion used by lenders to assess your ability to repay your loan. The ratio compares the total amount of your monthly debt repayments with your gross monthly income. For example, if your gross monthly debt payments total $1,000 and your gross monthly income is $5,000, your DTI ratio is 20% (1,000/5,000 = 0.200). Aim for a DTI of 36% or less for your best chance of loan approval.
  • Collateral: Some lenders require collateral for larger debt consolidation loans, often in the form of home equity.

Be aware that some lenders charge processing fees (also known as origination fees) ranging from 1% to 8% of the amount borrowed.

How to apply for a debt consolidation loan?

Taking out debt consolidation is quick and easy, and you can apply by following these five steps.

  • Shop around and compare lenders. Comparing several loan offers can help you find the best debt consolidation loan to meet your needs. Many online lenders allow you to prequalify for a loan to assess your chances of approval and the interest rate you may receive. When you prequalify, the lender usually does a soft credit check that doesn’t affect your credit score.
  • Choose your loan offer and your lender. Consider loans that offer the best balance of low interest rates and fees, flexible repayment terms, and achievable eligibility requirements. After reviewing several personal loan offers, select the one that best suits your needs.
  • Complete a loan application. Once you have chosen a lender, submit a formal application. You will need to provide information about your job, your income and the amount you want to borrow. Your lender may ask you to provide supporting documentation, including government-issued ID, pay stubs, account statements, and proof of residency.
  • Pay your debt. Once your lender has approved your loan application, you must sign the loan to release the funds. Your lender can disburse your loan funds directly to your competitors to pay off debts on your behalf. Alternatively, your lender deposits the money into your account and uses the funds to pay off each of your debts.
  • Keep making payments. Upon loan approval, you are responsible for making payments on your new loan. However, it may take some time for your old creditors to close your accounts. To avoid damaging your credit, continue to make payments on your old accounts until they are officially closed.

Debt Consolidation Loan Alternatives

If you don’t want to take out a debt consolidation loan, there are other options to consider, such as:

  • 0% APR Balance Transfer Credit Card: These credit cards offer an interest-free period of up to 21 months. You can pay off as much debt as you can during the promotional period at 0% interest, but understand that these cards generally require good credit to qualify.
  • Home Equity Loan: You may be able to tap into the equity in your home to pay off your outstanding debts. Typically, lenders allow you to borrow up to 80% of the value of your home, minus your mortgage balance. Home equity loans involve considerable risk since you have to offer your house as collateral.
  • Credit advice: Instead of borrowing money to pay off your debt, you might consider getting credit counseling from a nonprofit agency. An advisor can help you budget and design a repayment plan. Some agencies will even contact your creditors to lower your interest rates. Online financial advisors can also help point you in the right direction.

Whether you take out a debt consolidation loan or use another method, eliminate credit card debt can dramatically improve your financial health, but only if you can avoid accumulating new debt and repeating the cycle. As a general rule, never charge more than you can afford.

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How I got my student loans forgiven: Florida Public Defender https://langcreekbrewery.com/how-i-got-my-student-loans-forgiven-florida-public-defender/ Mon, 12 Sep 2022 18:52:22 +0000 https://langcreekbrewery.com/how-i-got-my-student-loans-forgiven-florida-public-defender/ September 12, 2022 12:55 p.m. Anna Helhoski Job : September 12, 2022 12:55 p.m. Updated: September 14, 2022 2:58 p.m. Getty Images Beth Bourdon, an assistant public defender with the Orange County Public Defender’s Office in Orlando, Florida, was used to her student loans not being eligible for relief unlike other federal loans. She had […]]]>
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Beth Bourdon, an assistant public defender with the Orange County Public Defender’s Office in Orlando, Florida, was used to her student loans not being eligible for relief unlike other federal loans.

She had loans from the Federal Family Educational Loans Program, or FFEL. This is an old type of federal student loan that can be owned by the federal government or a private company. This type of loan generally does not qualify for the benefits of federal direct loans. These benefits include income-contingent repayment, loan forgiveness, or more recently, federal student loan payment pausing.

“When everyone’s student loan payments were put on hold for COVID, mine weren’t put on hold. I paid every month,” explains Bourdon. “When everyone’s interest rate went down to zero, mine didn’t go down.”

She eventually took a break with the help of a temporary waiver for the Civil Service Loan Forgiveness Scheme. The waiver, which includes FFEL loans, counts past payments toward the total needed to cancel debt that otherwise would not have qualified.

Through the waiver, Bourdon had his remaining debt of $57,000 in law cleared.

A dismally successful debt forgiveness program

For years, most borrowers who applied Cancellation of civil service loans were rejected. The approval rate since the program’s inception in 2007 has hovered around 2.4%.

A full debt discharge requires 120 qualifying payments made while working full-time for an eligible employer such as a public school, public hospital, qualified nonprofit, or government. But most borrowers had been floundering, sometimes for years, in their attempts to argue for the payments to be considered for forgiveness.

Following public criticism, the Biden administration made temporary changes to fix some of the flaws in the program’s execution. Hence the PSLF waiver, which offers borrowers the option of receiving credit for past payments that did not meet the program’s strict rules. Since the waiver was implemented in October 2021, federal data shows PSLF approvals through June 2022 have climbed nearly 10%.

A short window of forgiveness

Bourdon had about $75,000 in student loans, including $20,000 in undergraduate debt that she used to attend the University of Central Florida. She had already paid off her undergraduate debt when she learned of the PSLF exemption. That left only her debt to law school — originally about $55,000 — which she had held since 2004 when she earned her Juris Doctor degree at Stetson University College of Law in Gulfport, Florida. .

Bourdon says she posted on Twitter last fall that she was not eligible for a rebate because of the type of federal loans she had taken. In response, she received a direct message regarding the waiver from a member of the Debt Collective, a membership-based, non-profit debtors’ syndicate. Discovering that she could see her debt erased prompted her to apply, not without some trepidation.

“I was really afraid of spoiling something,” says Bourdon. “But I thought, ‘This is the only chance I have and it’s just an open window for a year.’ I didn’t know how long the process was going to take.

She does not recommend applying for the PSLF while working on a first-degree murder trial in another county, as she did. But, the most typical aspect of his application process went like this:

First, Bourdon used federal government policy employer search tool for PSLF, a database of all employers eligible for the benefit. But the PSLF Helper Tool proved temperamental and less friendly to Bumblebee, so she dumped him.

Next, Bourdon called for consolidation, a necessary step for borrowers who don’t have direct loans. However, she says she was afraid to consolidate her debt because of the strict rules of civil service loan forgiveness and income-contingent repayment forgiveness – if you consolidate, your countdown to reset is reset.

Bourdon took the leap in good faith. In the process, she opted to have her loans serviced by the only student loan servicer that handles debt for borrowers seeking PSLF (at the time it was FedLoan Servicing, but those loans are going through in MOHELA by the end of the year).

Finally, she submitted the combined PSLF/employer certification form. She initially had two separate waiver forms due to a job lapse. But her employer’s human resources department sent her back a single form and told her that even though she had split work periods, the federal student aid office would process it on one form.

This turned out to be a mistake.

Bourdon submitted the single request in November 2021. However, in early January 2022, she received a letter stating that she only had one eligible payment under the waiver and that she still had to make 119 additional payments.

“I started to panic,” Bourdon said. She was advised by the Debt Collective to submit two forms to certify her employment which accurately indicated the different periods of employment in the civil service in her history.

Then she waited and checked her account every day.

“Nothing seemed to change. I was getting anxious,” says Bourdon. Then she saw an anticlimactic $1,000 drop in her total balance. “It was like, ‘Oh, thank you so much,'” she said.

On February 15, Bourdon logged into her account and saw that her debt was at zero. But, instead of instant relief, she says she was filled with doubt.

“For a second, I was like, ‘That’s a thing,'” Bourdon said.

But two days later, she had a message on her account, a letter from her repairman confirming that her debt had been cleared.

How to obtain the PSLF exemption

More than 146,000 borrowers have seen a collective debt of $9 billion canceled thanks to the temporary waiver, according to federal data from June. The average balance discharged through the waiver is $61,408. If your employer qualifies you for the PSLF, you must apply even if previous payments have been declined.

The PSLF waiver counts past payments that were not previously eligible, including:

  • Late payments.
  • Payments less than total amount due.
  • Payments made on the incorrect reimbursement plan.
  • Payments made on loans that were not previously eligible, such as FFEL loans or Perkins loans.
  • Payments not made during forbearance periods of 12 consecutive months or more.
  • Months spent in adjournment, other than academic adjournment, before 2013.

Use the PSLF Helper Tool to search for an eligible employer and generate a form. It has been updated to align with the waiver.

To qualify, borrowers must already have direct loans or consolidate their federal debt into a new direct loan. The consolidation step is essential: borrowers can submit a combined PSLF/employer certification form prior to consolidation, but they must consolidate to be eligible for the forgiveness.

To find out if you are entitled to additional payments and to find out more about the exemption, log on to federal student aid website. Be sure to submit it before the waiver expires on October 31.

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