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9 Things to Know Before Borrowing from Your 401(k)


#401k loans
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9 Things You Should Know About Borrowing from Your 401(k)

By Michael Rubin. Retirement Planning Expert

Many employers allow their employees to borrow money from their 401(k) plans  through what is known as a 401(k) loan. Of those 401(k) participants whose plan offers a loan option, only 21% use it. Though many like the idea of borrowing from themselves over borrowing from a financial or banking institution, taking a loan out from your 401(k) is not as simple as it may appear.

Important 401(k) Loan Facts

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In fact, in most cases, taking a loan against your 401(k) in inadvisable. But if you are considering a 401(k) loan, make sure you know the rules and understand the relative advantages and disadvantages of a 401(k) loan before you sign on the dotted line. Before getting started, here are nine things (the good, the bad, and the neutral) to know about a 401(k) loan.

1. 401(k) Loans Have Borrowing Limits

In general, you can only borrow the lesser of $50,000 or one-half of your retirement plan balance.

To accept the loan, you must typically agree to begin paying back the loan as soon as your next pay period. Most often, this is done via an automatic deduction from your paycheck.

2. 401(k) Loans Have Length Restrictions

Unless you use the money to acquire a home, you must pay the loan back in five years or less. If you borrow the money so you can purchase a residence, the length of the loan may be significantly longer, but be sure to note the risk of termination below.

3. 401(k) Loans Don t Require a Credit Check 

No credit check will be performed if you request a 401(k) loan since you aren’t actually borrowing money .

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Instead, you are temporarily tapping into your retirement funds. Since no entity is loaning you money, there is no need to check your credit. But that doesn t mean you won t pay interest.

4. 401(k) Loans Have a Competitive Interest Rate

Regardless of your credit score. you’ll pay a competitive interest rate  on a 401(k). The rate is often in the neighborhood of the prime rate, which is consistent with typical consumer loans. Better yet, you’ll pay back the loan principal and the interest. to yourself, not to a bank or other financial institution. The entire amount of each loan repayment goes back to your 401(k) account.

5. 401(k) Loans Have Low or No Application Fees

Since a 401(k) loan isn’t a true loan, any application fees are usually minimal.

6. 401(k) Loans Result in Lost Investment Growth

Your borrowed 401(k) money will not be invested for your retirement for the entire time the money is outstanding from your 401(k) plan. Therefore, you forgo all potential investment gains from all borrowed funds for the duration of your 401(k) loan. But perhaps most impactful, you lose out on gains from compound interest. So remember, when you borrow from your 401(k), you are borrowing from your future self and even when you pay back the principal and interest, you likely still won t break even in terms of lost investment growth by the time you retire.

7. 401(k) Loans are Repaid with After-Tax Money

Unlike the initial 401(k) contributions which were likely tax deductible, when you pay back your 401(k) loan, you do so with post-tax (or after-tax) dollars. Consequently, a $100 loan repayment reduces your take-home pay by $100. Worse, when you take the money out of your 401(k) plan during retirement, you will pay tax on the same money again.

8. 401(k) Loan Terms are Dependent on Employment

There is a real risk with 401(k) loans that not many people know, which is the risk of job termination. The reason that termination poses such a risk is that the terms of 401(k) loans are generally tied to your employment status with that employer. No matter the cause, if you cease working with your current employer, the entire remaining balance of the loan is usually due within 60 days. If you are unable to pay back the loan balance during that quick time frame, the entire amount you are unable to pay is deemed a distribution, which is likely to be subject to significant federal income tax, state income tax. and early distribution penalties .

9. 401(k) Loans are Still Generally Better Than a Distribution

While a 401(k) loan has some benefits, its significant negatives ought to be avoided except during a genuine financial emergency. Most financial planners advise people to act as though their retirement funds are off limits. It is always better to be prepared for a financial emergency with emergency funds or proper insurance. Still, if your only other source of money in a true emergency is an outright distribution of your 401(k) money, a 401(k) loan is still the preferable option as unless you are terminated during the life of the loan, you can avoid paying income tax and penalties you would on a distribution.


10 Important Things To Consider When Getting A Mortgage Or Home Equity Loan


#getting a loan
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10 Important Things To Consider When Getting A Mortgage Or Home Equity Loan

Finding the best home loan is not a job to be taken lightly. Here are 10 very important tips to consider before, during, and after the loan.

Looking For The Right Home Loan For You

  1. Mortgages are not commodities. If you think “it’s all about the rate”, you are going to be disappointed from the start. It’s really about finding a trusted partner help you navigate a complex transaction by offering honest advice and responsive support throughout the entire loan process.
  • Online is not the place to transact your biggest liability. Buy a music player, bid on sports equipment, order some books, but don’t do a mortgage over the internet. There are too many variables that arise throughout the process. This is not to say you should exclude the internet in your rate search, as there are reputable sites on the net which will help you find rates, calculate your potential loan, and provide other helpful information. I’m suggesting you shouldn’t work with an internet-only firm for your mortgage.
  • There are two types of mortgage lenders who advertise on the web and on the newspaper rate table. Ones you’ve heard of and ones you haven’t. Why do the major, well-known lenders generally quote higher rates? It could be they have higher cost structures. It could also be they are more reputable and provide a lot more service.
  • Generally, avoid interest-only loans. Unless you plan to move in a short period of time, or the loan is a short-term “bridge” or construction loan, avoid the “interest-only” loan. If you are only paying interest, you do not build up any ownership or equity in your home.
  • Are the fees reasonable?. Find out exactly what the loan will cost you. While some fees might not be avoidable, know that many fees are unnecessary “junk fees” or negotiable. Be sure to get a good faith estimate statement which shows your total expected fees. Some companies will include all the fees in the interest rate they quote you. Here are some fees to ask about:
    1. Application fee
  • Points (if you pay points, make sure your interest rate is reduced. A rule-of-thumb is to generally avoid paying any points if you plan to live in your home less than ten years)
  • Credit Evaluation
  • Loan Processing (these fees can be pretty arbitrary)
  • Appraisal Fee (cost to estimate the value of your home)
  • Title Search
  • Title Insurance (you have to pay to protect the lender. Always make sure the Title Insurance specifically protects you as well. It’s normal to pay more to protect your interests)
  • Documentation (these fees can be pretty arbitrary)
  • Underwriting (these fees can be pretty arbitrary)
  • Escrow Fee
  • Prepayment Penalty (the fee paid if you pay off your loan early)
  • The following fees are almost always “junk fees”: amortization schedule fee, trustee fee, financing statement fee, appraisal review fee, credit report review fee, document preparation fee, inspection fee, photo inspection fee, underwriting fee, warehousing fee, administrative fee, computer fee, courier fee, and overly high notary fees
  • When you ask about your interest rate, also ask about the APY (or Annual Percentage Rate) which is usually higher and a more accurate reflection of your true interest rate.

  • Generally, avoid adjustable rate loans. Adjustable rates can be attractive because the advertised rate is lower than a fixed rate. They generally allow you four payment options:
    1. minimum payment (NEVER make only a minimum payment. It won’t even cover the interest on your loan and can quickly lead to a situation where your home is worth less than your loan)
  • “interest only” payment (also not recommended. No money is going to pay down the loan or create home equity)
  • a fully amortized 15-year loan
  • a fully amortized 30-year loan
  • The later two are similar to traditional loans, except that your interest rate is adjustable.
    Here are three reasons to consider an adjustable rate.

    1. IF you know for certain interest rates can’t go up from current levels
  • the loan ceiling on the adjustable rate is below the current fixed rates
  • you plan to sell your home prior to the first rate adjustment

    Here are five questions to ask about your potential ARM rate. Adjustable rate loans often start with a “teaser rate”. This is an artificially low rate which will get adjusted higher at the first adjustment opportunity. If you do consider an adjustable rate, be sure to ask:

    1. what is the rate based upon (often a current T-bill or LIBOR rate plus an additional amount). Get complete details
  • what would be the rate today if you already had the loan and it adjusted to current levels
  • what is the floor (how low can the rate go from here)
  • what is the ceiling (what is the highest rate you would have to pay)
  • how often can the rate adjust.
  • Be sure you fully understand each of these parameters, and get them in writing. Note: if you can’t afford the loan ceiling and the fully amortized payment at that level, don’t accept the loan.

    Looking For The Right Home Loan For You

    1. The mortgage industry is unregulated. Mortgage brokers are not banks and don’t play by the same rules. There are countless stories of “bait and switch” with people being promised one thing and ending up with another at the closing table. You do not have to accept any last minute changes. While inconvenient, just walk away. (They are betting you won’t). Lets say you have found the rate and lender with which you wish to work. Here are twelve warning signs telling you to walk away from the loan. Any one is enough for you to terminate the loan right then and there.
      1. if the loan rep encourages you to borrow more than you need — walk away!
    2. if the loan rep prods you to overstate your income or understate your outstanding loans or expenses — walk away!
    3. if the loan rep tries to get you to agree to payments that you can’t afford — walk away!
    4. if the loan rep asks you to sign blank forms — walk away!
    5. if the loan rep won’t give you copies of every document you signed — walk away!
    6. if the loan rep fails to give you mandated disclosure documents — walk away!
    7. if the rep appears to pressure you — walk away!
    8. if the rep is unresponsive to your calls, is disorganized, repeatedly asks for the same documents, or is constantly blaming others for delays — walk away!
    9. if they try to sell you credit insurance or extra products you don’t want — walk away. (If you actually want the credit insurance, shop around to get the best rate)!
    10. if they try to make you do something that is against your better judgment — walk away!
    11. if they require you to deed your property to anyone — walk away!
    12. if the loan rep changes any of the terms of the loan at closing — run, don’t walk! Be aware that the further in the process you get — the more momentum builds — the tougher it is to back out. Dishonest lenders know this and are counting on it.
  • Generally, see if you can avoid paying for mortgage insurance. Some loans require mortgage insurance. Others will waive the insurance if you have a low enough debt-to-home equity ratio when you take out your loan. Most mortgage insurance protects the lender, not you.

  • 7 Reasons Why a P2P Loan is Good News for – Bad – Credit


    #loan bad credit
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    7 Reasons Why a P2P Loan is Good News for Bad Credit

    While many of us in the peer to peer lending world have the luxury of having extra cash to invest, the reality is that millions of people in our country struggle under the weight of bills and unpaid debt. Whether through a bad shopping habit or a sudden medical emergency, many people need access to cash but do not have good enough credit history to be approved for a personal loan from a bank.

    Loans up to $35,000

    Check your rate at both, go with the lower rate.

    Check Your Rate

    It can be difficult to find bank loans for people with bad credit, which usually require a credit score of 700+ for a personal loan. But if someone needs a loan whose credit score is in the 600s, what are their options?  For people in this situation, a peer to peer loan (p2p loan) can be truly wonderful news. This avenue of lending online, new to the nation, offers many people a way out.

    Seven Reasons to Apply for a P2P Loan (Even With Imperfect Credit)

    Seven reasons why peer to peer loans are helpful to people with less than perfect credit scores.

    #1. Unlike a Bank Loan, a Smaller Footprint Means More Approvals

    People across the United States often struggle to be approved for a personal loan if they apply through the branch of their local bank, even with solid credit history. This is because access to loans has become very tight  (Bloomberg) in the past few years. Thankfully, peer to peer lending companies run leaner and more efficiently than banks do. They run almost completely through the internet and have less overhead. As a result, they are able to offer loans to people with lower credit than banks will allow. Prosper. for instance,  approves loans for people who have FICO credit scores as low as 640 .

    #2. Unlike a Bank Loan, Accurate Assessments Mean More Approvals

    Many people deserve a line of credit, but are denied for a loan because their bank does not have access to all the applicant s information. They are gently informed they have bad credit, but this is often said by banks who are not seeing the whole picture. Peer to peer lending companies, in contrast, have a remarkable ability to more accurately judge whether someone is deserving of a loan. This is because they can electronically pull data from a wide variety of third-party sources to fully build a borrower s profile. They do this while also looking at success rates of thousands of their past loans, and this gives them the ability to approve loans for many people who elsewhere be denied.

    #3. Awesome Lower Interest Rates

    The average American who is denied for a loan by their bank has few options left to them. Often their only option is to get a payday loan, but these types of cash-advance loans often have interest rates higher than 60%. This type of lending is so terrible and predatory that it has been outlawed in some states like Georgia. In contrast, peer to peer lending companies like Prosper issue loans to people with rates that are far more reasonable, sometimes as low as 6.8% .

    #4. Unlike a Bank Loan, P2P Loans Offer Larger Loans (Up to $35,000)

    I recently got off the phone with my local credit union. When I asked about the maximum loan amount they could offer me, they said it was $15,000. This is a common problem in our country. Often people need to pay off large debts like credit card balances and medical bills but struggle to find a loan large enough to cover the entire amount. Thankfully, peer to peer lending companies offer loans as high as $35,000, a number than should go up in the coming years.

    #5. Unlike a Bank, P2P Loans Offer Quick Access to Cash

    When applying for a line of credit at a local bank, the process can often take weeks at a time. Paperwork has to be faxed and phone calls have to be made. But peer to peer loans are mostly done over the internet. This allows the process to happy in a fraction of the time. Many people who apply for a loan often have the money deposited in their bank account within 10 days .

    #6. Zero Prepayment Penalty

    As further evidence that peer to peer lenders are cheaper and more efficient, they offer borrowers the chance to pay any loan off early without a fee. This often means p2p lenders lose a bit of interest, but it is a huge benefit for borrowers. Prepayment fees at banks can often be in the hundreds of dollars, yet loans at companies like Prosper can be paid off early without any penalty at all.

    #7. Loans Come from Real People Across America

    This reason has lost a bit of its appeal in the last few years, but I think it is still a big one: peer to peer loans are funded by people around the country. Borrowers may feel little connection to a bank that offers them a loan, but a peer to peer loan is often funded by a hundred lenders all working together. For some borrowers, this can give them a sense of dignity and responsibility for the cash they are entrusted.

    For People With Imperfect Credit, Hope Remains

    Peer to peer lending is a type of investing that is only just beginning to find legitimacy in the eyes of the nation. This is great news for people struggling under the weight of heavy debt, even those with less than excellent credit. Whereas before people were forced to become delinquent borrowers, they can now have a peer to peer loan consolidate their outrageous debt into one lump sum with a lower interest rate than before.

    Unfortunately, most people in the United States are still unaware of peer to peer loans. Payday advance lenders are still making a killing by offering outrageous 60% rate loans to people who have no idea something better exists something that sites like LendingMemo are trying to change. My hope is that the continued growth of the p2p lending industry begins to alter this harsh reality, bringing people who have imperfect credit the ability to finally get the loan they deserve.

    Loans up to $35,000

    Check your rate at both, go with the lower rate.


    24 Hour Payday Loans


    #24 hour loans
    #

    24 Hour Payday Loans

    A 24-Hour Payday Loan is an advance loan on your paycheck for which you pay a fee. 24 Hour Payday lenders ensure that your loan process is quick and that the money is in your account the next day.

    24 Hour Payday Loan Amounts

    Loan amounts for a 24 Hour Payday Loan range from $100 to $1,000. Depending upon your situation, some Payday lenders will consider larger loans. The amount you will be able to borrow will vary based on your income and other requirements.

    How soon can I expect to get the money in my checking account?

    As the name says, 24 Hour Payday Loans means you can expect to make a withdrawal from your checking account the following day for you loan amount.

    Do 24 Hour Payday lenders run credit checks?

    No. If you meet the basic requirements for a Payday Loan, you should not have any problem funding 24-Hour Payday services that do not run any form of credit checks. We work with lenders who don’t perform credit checks, so don’t worry.

    What is the time frame for paying off a 24 Hour Payday Loan?

    Like any other Payday Loan, a 24-Hour Payday Loan is an advance on your pay. Usually the time frame for paying off the loan is until your next pay check or 14 days. It is not a problem for you to request a longer repayment time frame, usually 21 or 28 days. In longer term loans, fees can be higher though. If it is at the end of the agreed time frame and the loan is not repaid, most lenders will accept an extension of the loan. A new fee is charged for every new period. Some lenders automatically extend the loan and only withdraw the fee at the end of every period, until the customer arranges installments for paying back the loan.

    Can anyone use 24 Hour Payday Loans?

    Yes, as with other types of Payday Loans, anyone can apply for one, providing they meet the requirements of the loan. This usually includes being a United Sates citizen over 18 with steady employment, a monthly income of at least $1,000, and a checking account. Some companies require that you have been employed a certain length of time with your current employer, usually 3 or 4 months.

    24 hour Payday Loan Interest Rates

    24 Hour Payday companies charge a financial fee for your loan. These can range from $10 to $30 per borrowed $100 to be paid every payment period, which is usually every 14 days. Besides the financial fee, no interest rate is charged. If the fee is $15 per $100 borrowed, that equals an APR of 391.07%.

    24 hour Payday Loan Restrictions

    None, because 24-Hour Payday lenders do not have restrictions on those items you need to pay for or buy. This is a personal loan so the money can be used for whatever reason you need.

    Multiple 24 Hour Payday Loans

    It is up to the lender whether or not multiple loans are an option. Many lenders require that a loan be repaid in full before considering a new loan. Other lenders will agree to increase your loan, if your monthly income is high enough. We suggest that you do not get multiple Payday Loans at one time.

    * Payday Today is not a payday lender or broker. We provide research and information about payday lenders and products, and are not necessarily affiliated with the companies featured on this site. Availability of products and services varies by state. Not all independent lenders will approve you for a loan or can provide you with up to $1,000 on your first loan.


    10K Personal Loan With Bad Credit (2K, 3K, 5K)


    #loan for bad credit
    #

    OHIO LOAN FIND

    10K Personal Loan With Bad Credit (2K,3K,5K)

    Many borrowers need a personal loan for 10K (ten thousand dollars), but the reasons why they need the loan is completely different depending on each individual situation.

    Often if somebody has borrowed 2K, 3K, or 5K in the past they end up owing a lump sum of 10K or more.

    Usually these loans taken prior have high interest rates attached to them is the borrower(s) had bad credit when they applied for the loan. This is not a good position to be in and by borrowing 10K they think they can have one payment per month to make instead of various other payments.

    In other words, these borrowers are in essence getting a debt consolidation loan on their own accord instead of paying for an attorney or trustee to set up a payment schedule based on just a fraction of what is owing. These borrowers hope they can somehow get out from underneath their debt and not go through the shame involved when setting up a settlement plan with their creditors.

    Most of these creditors are credit card companies, department stores, and their family banking institutions via lines of credit and overdraft accounts. Unfortunately many times the 10K they are trying to borrow is not even enough to pay off all of their loans.

    Of course there are people who need 10K for other purposes, such as the purchase of a car, some home renovations, or a family vacation. Just did this is the case then you could be increasing your complete debt load even more putting yourself in a even more precarious financial position going forward, and it may be something you ll regret later. You may end up being in a position where you can t service the debt on everything you have borrowed and you are just prolonging the pain until you do have to get a structured settlement plan set up with your creditors through trustee.

    10K Personal Loan at 11% for 3 Years

    For a ten thousand dollar loans we will run the numbers so you can see home much it is going to cost you in the long run, and what it does for you in the short run. For this 10K loan we are going to use an Interest rate of 11% for the sake of argument and we ll use a 3 year pay-back schedule with payments being at the beginning of each month. Below are the results.

    Amount borrowed = 10K dollars

    Interest rate = 11%

    Length of loan = 3 years

    Payment periods = monthly

    10K Dollar Loan Results for 3 Year

    Total Amount to be payed: 11,695.52

    Total amount of interest 1,695.52

    You can see very clearly that you are paying a little bit over $500 a year in total interest payment charges. Your payments are reasonable at $320. This kind of loan is fairly common throughout the United States. Next we will look at a 10K dollar loan over 5 years at 7.5%.

    10K Personal Loan at 7.5% for 5 Years

    If you have a pretty good FICO score with the credit bureaus you can perhaps be approved for a loan at an interest rate of 7.5%. This is a considerably lower APR and will save you allot of money over time. For this loan you will be paying the bank back every 14 days (what they call biweekly) and you will be paying back the loan over a five year period. Of course this is also a loan for 10,000 dollars. See below. Take special note of how low the biweekly payment is here only 91 dollars paid every two weeks!

    Amount borrowed = 10K dollars

    Interest rate = 7.5%

    Length of loan = 5 years

    Payment periods = biweekly

    10K Dollar Loan Results for 5 Years

    Total Amount to be payed: 11889.41

    Total amount of interest 1889.41

    10K Personal Loan at 23% for 7 Years

    If you have a bad credit rating, with a FICO score of 550 (as far as the credit bureaus say) then your interest rate is going to be much higher. The banks and private lenders will see more risk in lending to you and as a result they try to protect their interests by charging you, along with thousands of other borrowers, a very high interest rate.

    This way if a few borrowers default on their payment(s) they will still be ahead in the long run.

    Now watch how expensive this loan is over the full during of the 7 year term. See the most important part here is that the principal of the loan is 10K, and the interest on the note is over 8K. This is a very expensive form on lending in which the borrower is paying dearly at the cost of  borrowing point. The fees on a loan like this could be very high as well, so you will have to keep that in mind too. Often the lender in this case will be a private lender.

    Amount borrowed = 10K dollar

    Interest rate = 23%

    Length of loan = 7 years

    Payment periods = monthly

    10K Dollar Loan Results for 7 Years

    Total Amount to be payed: 18144.67

    Total amount of interest 8144.67


    18 Month Loans- Payday Loans- Same Day Loans


    #same day loan
    #

    Welcome To 18 Month Loan

    Are you thinking to opt for a short term loan but repaying the loan amount is such a short span of time is not possible of time? Then how about availing the loan amount for a slightly longer period of time. Yes, its true! We at 18 Month Loan will arrange you an array of short term loan services that will provide you desired cash amount for comparatively longer period of time. So no need to spare any second thought! Just apply with 18 Month Loan and find a deal of your choice in no time.

    18 month cash loans are unsecured short term loans that offer you quick financial assistance ranging from $100-$1500 for the maximum time period of 18 month as per your needs and paying back ability. Besides, you also have the absolute liberty to settle down any of your diversified personal purposes such as pulling out medical bills, car repairs, repairing of broken window’s pane, house rentals, bank overdrafts and so forth without any restriction. Now don’t think much! Apply with 18 Month Loan for payday loans and get rid of all your financial troubles before your next payday.

    We at 18 Month Loan are not concerned about your credit history and neither do we carry out any credit check formalities. So be at ease and apply for same day loans despite of your low credit scores.

    Apply with 18 Month Loan by simply filling our short online application form and avail our free of cost services quickly.


    Ripoff Report


    #beneficial loans
    #

    Don’t let them get away with it! Let the truth be known!

    • Update a Report
    • Program Services
    • Help FAQs
    • Consumer Resources
    • Verified Business Directory
    • Legal Directory
    • Consumers Say Thank You
    • In the Media Repair your reputation the right way Corporate Advocacy Program

    Reputation Management

    Corporate Advocacy Program

    This is the best way to manage and repair your business reputation. Hiding negative complaints is only a Band-Aid. Consumers want to see how a business took care of business.

    All business will get complaints. How those businesses take care of those complaints is what separates good businesses from bad businesses.

    Consumers love to do business with someone that can admit mistakes and state how they made improvements.


    Ripoff Report


    #omni loans
    #

    Don’t let them get away with it! Let the truth be known!

    • Update a Report
    • Program Services
    • Help FAQs
    • Consumer Resources
    • Verified Business Directory
    • Legal Directory
    • Consumers Say Thank You
    • In the Media Repair your reputation the right way Corporate Advocacy Program

    Reputation Management

    Corporate Advocacy Program

    This is the best way to manage and repair your business reputation. Hiding negative complaints is only a Band-Aid. Consumers want to see how a business took care of business.

    All business will get complaints. How those businesses take care of those complaints is what separates good businesses from bad businesses.

    Consumers love to do business with someone that can admit mistakes and state how they made improvements.


    You Asked, We Answered: The Truth About Debt Consolidation Companies


    #loan consolidation companies
    #

    You Asked, We Answered: The Truth About Debt Consolidation Companies

    Regardless of whether you binge on shopping or simply use credit cards to make ends meet, there may come a time when you need a financial intervention to help organize your bills, repay your debt, and improve your finances. For some, debt consolidation is the answer. But before you jump in head first, it s time for a course in Debt Consolidation 101.

    1: When Should You Use a Debt Consolidation Company?

    Debt consolidation combines multiple debts into one, single payment, with the purpose of simplifying your repayment schedule and lowering your overall monthly payment amount. A debt consolidation company may be able to help you pay off your debt more quickly and alleviate some of the stress associated with paying bills. So if you have mounting unsecured debt (e.g. credit card bills, store cards, medical bills, student or personal loans, accounts in collection, etc.), working with a trusted debt consolidation company is something to consider.

    For these plans to work, you should have some form of income. A debt consolidation company will then work with you to craft a repayment plan based on a realistic monthly payment amount you can afford, as well as advocate on your behalf to your creditors and make your debt more manageable.

    2: What Types of Plans are Available?

    There are two methods of debt consolidation. Both methods achieve the same result but differ in their approaches. Your success hinges upon your ability to understand these differences and pick the right plan for your needs:

    • Debt Management – This strategy consolidates unsecured debt into a single monthly payment that you send to a debt consolidation company. That company then distributes the designated funds to your creditors. The debt consolidation company works directly with your creditors to secure benefits that help you fulfill your obligations over time. Such benefits may include interest rate reductions, late and over-the-limit fee waivers, and reduced monthly payments.
    • Debt Settlement – This plan helps people who can t repay their debt in full and facing bankruptcy. Under this arrangement, your debt consolidation company will approach your creditors with an offer to settle your accounts for a portion of the amount owed.

    A good debt consolidation company can help you choose the best plan for your financial situation based on your income level, type of debt, and ability to make consistent payments.

    3: Do All Providers Offer the Same Service?

    No! Just as each person s financial situation is unique, so too are debt consolidation companies. Locate a partner that offers various plans and expertly guides you to the right solution based on your needs, not their balance sheet.

    Call each company you re considering and ask directed questions about their service offerings. Then, compare the fee structure and services of multiple providers so you can assess each company s reputation and accreditations. Identify the pros and cons about both debt management and debt settlement plans so you can determine which service will best help you succeed.

    Additionally, many debt consolidation companies offer more than just service plans, so look for a full-service partner that will not only help get you out of debt, but will also teach you how to remain out of debt in the future. Tools to look for include:

    • Free educational resources
    • Monthly newsletters packed with legislative or regulatory updates and how they may impact your credit standing, expert advice, timely articles about budgeting and other relevant topics, etc.
    • 24-hour account access online or by phone
    • Money management tools ranging from loan calculators to budgeting worksheets and more
    • An online community filled with real advice where you can connect with like-minded people facing similar challenges

    4: Are There Bad Debt Consolidation Companies?

    Yes! Fail to choose the right company and you could end up in a worse situation than when you started. When you begin your research, try a simple online search to help determine which debt consolidation company is the best. You may even enter the search term good debt consolidation company. Just be careful; the results may not be pleasant if you get mixed up with an unethical provider. To prevent this disaster, follow these tips:

    • Don t accept a plan from a company that hasn t reviewed your financial situation.
    • Don t be lured by companies promising government money to erase your debt. There are no government programs that do this.
    • Read proposed fee schedules carefully. New laws prohibit for-profit companies from charging upfront fees. So if this type of provider wants to charge you fees before they have negotiated an agreement with one of your creditors, they re not legitimate. Non-profit companies have been urged to follow this regulation, but aren t forced to, so the bottom line is to be cautious and careful. Read everything and only agree to what seems reasonable.

    5: Is it Important to Work with a Best-Rated Debt Consolidation Company?

    Yes! Accredited debt consolidation companies are a worthy choice. Narrow down your search by identifying trusted debt consolidation companies whose solid reputations will provide creditors with an added sense of security, which will translate into better benefits for you. For example, look for debt consolidation companies that are accredited Better Business Bureau businesses, ask friends, family members and co-workers for recommendations.

    Debt consolidation plans work most effectively when you choose a reputable and accredited company, stick to the plan and, ultimately, address how you got yourself into debt in the first place. After all, you need to retrain your spending habits, better budget each dollar you earn, live within your means, and possibly remove all credit cards from your wallet, so you re not tempted to use them. With the right plan and right debt consolidation company, you CAN survive your debt.

    If you liked this you may also like:

    If you have lots of debt, consolidation may save you time and money. Depending on your financial situation, there may be a solution that s right for you.

    Debt relief comes in many forms- credit counseling, debt consolidation loans, settlement and even bankruptcy. Each solution will help you get out of debt, but the long term impacts and fees can vary greatly. Understand the myth and reality behind your debt relief options.

    Feeling overwhelmed by your debts? Having trouble making ends meet? Unable to get ahead of your credit card debts? A Debt Relief plan may be your solution to getting control of your finances.

    When faced with mounting bills, many consumers explore debt consolidation loans as a way to get their finances back on track as quickly as possible. And while a debt consolidation loan may be a great solution for you, it s important to weigh your options to determine the best plan for you and your specific financial situation.

    There seems to be a running joke that New Year s resolutions never last. (Why else would we have to keep making them every year?) But if you take the right approach to a resolution such as getting out of debt , there s no reason you can t be successful. If you ve been working to get out of debt and are not happy with your progress, or feel that you are starting to backslide, it s probably time to reassess your budget and fine-tune your strategy. The best way to get started is to: get organized, assess your current situation, develop a strategy that works for you, and make sure your goals are realistic.

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    20 OMNI FINANCIAL complaints and reviews @ Pissed Consumer


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    Omni Financial – Omni Constantly calls about a tax lien that i dont have

    Omni Financial specializes in IRS and state back tax help services. Its tax attorneys are dedicated to finding permanent relief to clients’ back tax burden. The company has been resolving tax problems for over 25 years. OMNI Financial was founded in 1985. Since then it has been offering its help to businesses and individuals with IRS and state back tax problems. Omni Financial provides a wide range of tax debt solutions including long term repayment plans, reducing or eliminating penalties, or helping settle tax debts for a small portion of what the taxpayer owes. Everyone can get a free consultation with lawyers of the company by telephone. Omni Financial is based in Broomfield, CO.

    380 Interlocken Crescent, Suite 800 Broomfield CO 80021

    every few days a rep from omni financial calls me to tell me there is a tax lien on my file, today they called once again and said now there are four tax. Read more

    Omni Financial – Got to us for 30,000 dollars. 5 years got nothing done

    Omni Financial – Rip off BEWARE DO NOT USE THIS COMPANY

    DO NOT USE THIS COMPANY THEY COLD CALLED ME OVER A YEAR AGO SELLING ME HOPES AND DREAMS OF FIXING MY TAX ISSUES. I SPENT WELL OVER $20,000 BETWEEN THIER FEES. Read more