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Student Loan Help, help with student loan debt.#Help #with #student #loan #debt


help with student loan debt

Goodbye, student loan debt. Hello, future!

Help with student loan debt

Get student debt answers now.

A nonprofit NFCC Certified Student Loan Counselor will review all of your finances and help you develop a personal debt repayment plan, all for a nominal fee.*

What s in it for you

  • A thorough evaluation of your entire personal financial situation—not just your student loans.
  • An audit of your current loans and their terms.
  • Comprehensive, one-on-one guidance through all student debt repayment options.
  • A full financial game plan, including which debt repayment plans are right for you.

Here s what comes next

  • Set up a secure login.
  • Create your own confidential, financial profile online.
  • Be contacted by a nonprofit NFCC member agency.

Ready? Set up your profile here.

*Nonprofit, student loan counseling fees vary by NFCC member agency.

I made the call. 1

Help with student loan debt

None of this was my fault, but it was my problem. Years ago, I co-signed a student loan with my then-husband. After we divorced, it stayed in his name. I made payments until the bank notified me the debt was forgiven. It wasn’t.

Julie K Minnesota

I didn’t leave school by choice. Two major health issues made the decision for me. By then, I had about $14,500 in federal student loans. Given my circumstances, I defaulted.

1 Stories above represent actual NFCC client experiences.

Student loan counseling.

Comprehensive

review of your financial situation, including current income, living expenses, all debt and your long-term goals.

Customized

game plan that doesn’t undermine your personal short- and long-term goals by just directing you to a plan with the lowest current payment.

Complete

assessment that looks beyond income-based programs and consolidation to see if other avenues for retiring your debt might be available and make more sense for you.

Why choose us?

Gain access to over 60 years of experience helping borrowers like you get answers to all of their debt-related concerns, including student debt solutions.

Help with student loan debt

Answers

We are experts on the ins and outs of student borrowing and repayment and on how to minimize its impact on your overall financial health. We work with you every step along the way until your issues are resolved.

Help with student loan debt

Nonprofit

You always know where you stand and who to call with questions about your student loans and any other financial issues that arise over time.

Help with student loan debt

Local to you

NFCC member agencies have office locations in all 50 states and Puerto Rico, which are staffed by NFCC Certified Credit Counselors.

Be informed.

Knowledge is power. To help you make the best decisions possible for your future, we keep you updated with access to a wealth of useful tools and resources.

Get the latest insights on recent news regarding student loans and your personal finances.

From calculators to definitions, find what you need to make better financing and repayment decisions here.

Who is the NFCC?

Founded in 1951, the National Foundation for Credit Counseling (NFCC ) is the nation’s first and largest nonprofit dedicated to improving people’s financial well-being.

NFCC members help millions of consumers like you through community-based offices located in all 50 states and Puerto Rico. Each NFCC member agency has earned our seal by adhering to high standards and ethical practices designed to help you achieve financial stability.

Member agencies are able to offer their services for nominal fees based on their current funding status. Funding for operations and services comes from an ever-changing combination of federal, state and local government grants, as well as donations from financial industry participants and private donors.

For more on the NFCC, visit www.NFCC.org

Thank you to our funders.

The Sharpen Your Financial Focus program is an initiative of the National Foundation for Credit Counseling (NFCC) in partnership with a broad cross-section of supporters. Together, we are committed to increasing the financial well-being of Americans. This initiative is partially funded by Bank of America, Chase, Synchrony Financial, Wells Fargo and other major financial institutions. We thank all funders and partners who make this program possible. For more information, visit www.SharpenToday.org.

National Foundation for Credit Counseling


Student loan debt: Why employers may want to help pay off college loans, help with student loan debt.#Help #with #student #loan #debt


Here s why employers may want to help out on the mountain of student loan debt

Help with student loan debt

Employers eager to recruit and retain skilled workers in a tight labor market have about 1.34 trillion reasons to expand their benefits package to include assistance in helping employees repay their student loans.

That’s the mountain of student loan debt being carried on the financial shoulders of 44 million Americans. And no surprise, the bulk of those would indeed love for the boss to kick in and help pay it back.

More than 80 percent of workers with student loans surveyed by IonTuition said they would like to work for a company that provides a student loan repayment benefit. IonTuition, a fintech company focused on services to help borrowers manage their repayments, mostly surveyed millennials.

Yet there is plenty of reason to suspect older workers would be eager for the perk, too. According to Federal Reserve data, borrowers at least 40 years old have a not-small $450 billion in student loans to pay off. A big part of that older cohort are parents who borrowed through the federal PLUS program or took out private student loans.

The benefit is still clearly in the early adopter stage with just 3 percent of firms surveyed by AonHewitt currently offering student loan repayment assistance. AonHewitt says an additional 5 percent of surveyed companies say they are likely to add the benefit and 24 percent are moderately interested in adding the benefit.

“Employers are incredibly curious and engaged around the issue given all the news about student loan debt,” said Balaji “Raj” Rajan , chief executive officer of IonTuition. He said IonTuition fields two or three inquiries a day from companies interested in adding student loan repayment assistance.

A few big old-line firms including Aetna, Fidelity, PwC and Penguin Random House have begun to contribute to employees’ loan payments. Earlier this summer, the city of Memphis, Tennessee, announced it will contribute $50 a month toward employees’ student loan repayment.

Adoption of the benefit is more common among smaller and mid-size companies with nimbler decision trees and the need to position benefits as a competitive edge in recruiting, according to Meera Oliva, chief marketing officer at Gradifi, a subsidiary of First Republic that provides a student loan benefit platform for employers, including PwC and Penguin Random House.

Gradifi has more than 140 employer clients offering repayment assistance and is adding a half dozen or more monthly. “The bulk of our business is companies coming to us, not the other way around,” Oliva said.

An employer contribution of $50 or $100 a month is common among the first movers. That can indeed be a big help, as IonTuition reports that about three-quarters of borrowers make monthly payments of $300 or less.

Employer contributions go toward principal repayment. Gradifi’s website includes a free tool for employees to see how an employer assist can aid employee financial wellness. For instance, someone aiming to pay off $35,000 in debt over 10 years might be able to shave off 2.5 years and save some serious coin in the process:

Help with student loan debt

Waiting on Washington

Chris Walters, chief executive officer of Gradfin, another student loan repayment and management tech platform, said the tax code is keeping plenty of interested employers on the sidelines.

“If an employer contributes $100 a month toward student loan repayment, it costs $107.65 a month because it is treated as compensation and requires paying the employer share of the payroll tax,” Walters said.

Moreover, the benefit is taxable to the employee as compensation.

“It’s going to take a change in the tax code to see large growth in the benefit,” he said.

More from College Game Plan

These states have the worst student debt

Bipartisan bills in the House and Senate would put student loan repayment assistance on par with employer tuition assistance, which currently allows employers to give employees up to $5,250 a year tax-free for tuition costs.

The cost of that tax break likely makes for some tough sledding in this current Congress. Walters says that’s missing the bigger picture.

“The federal government, meaning taxpayers, are already losing plenty in terms of defaulted student loans, and income-based plans that will be forgiven,” he said.

“Congress should be worried about those losses. If the private sector comes in and improves debt repayment the Federal government is going to get paid more.”

(Correction: This story has been updated to correct the spelling of Balaji “Raj” Rajan.)


Debt Consolidation – Consolidate Debt in South Africa, debt consolidation loans.#Debt #consolidation #loans


Approved Debt Consolidation Portal

Debt consolidation in South Africa

Debt consolidation in the most simple terms, involves rolling several outstanding balances into one account with a lower monthly payment. individuals who are eligible for a debt consolidation plan are usually able to negotiate a smaller interest rate percentage with creditors, making their consolidated balances much easier to pay off.

Debt counseling

Excessive debt is now a modern reality for many people from all walks of life. individuals with unmanageable outstanding balances have several options for help through debt counselling, including debt consolidation through restructured payment plans, renegotiated monthly interest rates and adjusted payment terms with each creditor.

Debt review

Due to higher costs of living, a sizeable number of people have run into financial hardships through no fault of their own. sudden interest rate increases can make monthly payments unaffordable with little forewarning. debt review is a process of restructured payment terms to help individuals repay debts after meeting their monthly expenses.

Debt management

The majority of south africans need to take on loans to afford homes and vehicles, which can sometimes lead to unforeseen financial difficulties due to interest rate hikes. with the assistance of a financial advisor, some specific debt management practices can help to safeguard against these future difficulties.

Debt solutions

Too much consumer debt is an unfortunate reality for individuals from all professions and backgrounds. missed payments bring on additional problems such as late fees, accrued interest and possible legal action from creditors. several specific debt solutions are available for south africans seeking to improve their financial situations.

Sequestration

For people encountering significant financial hardships, sequestration presents the best possible option when other debt relief measures do not suffice. the process entails an individual being declared insolvent of outstanding debts through high court rulings and later steps of rehabilitation to start restoring creditworthiness.

Debt consolidation loans Debt consolidation loans


Federated Financial, Debt Relief & Payday Loan Consolidation, debt consolidation loan.#Debt #consolidation #loan


Lower your Payments Starting Now!

Medical, & Credit Card Debt

Federated Financial is not only a consumer education organization dedicated to teaching the skills necessary for a secure financial future it is also the best place to get you out of debt once and for all! Our Debt Consolidation Company is in it’s 20th year of providing excellent service.

GET STARTED NOW!

FREE No obligation quote fill out the form below or Call Us Now!

We take your privacy seriously

Debt consolidation loan

Debt consolidation loan

Our program may be able to help YOU:

Lower your monthly payments
Significantly reduce your interest rates today!
Eliminate late fees and over limit fees
Stop collection calls
Avoid bankruptcy and legal escalation
Consolidate your Student Loans and Payday Loans

If you feel overwhelmed with debt, We may be able to Help!

Our Credit Card Consolidation, Medical Debt Consolidation, Payday Loan Consolidation & Advance Loan Consolidation programs are designed to eliminate your debt. Our full budget analysis allows us to properly facilitate your gradual debt reduction. Please give us a call to learn more or fill out the form above!

Payday Loan Consolidation

The thought of quick cash has lured many desperate people into taking out a payday loan. Then the vicious cycle begins: even if you manage to pay off the loan, new bills pile atop old bills and another loan has to be taken out for the next pay cycle. Add origination fees and rollover fees, and suddenly you are in a world of hurt. The way you deal with your money on a daily basis can impact your life for many years to come. We can show you that sound financial practices do not always require “doing without, or giving up.” All unsecured loans (loans without collateral), still tend to be higher interest than many alternatives with collateral.

Debt Consolidation Company

Payday Loan Consolidation Programs can help you with your finances. Interest rates charged by your lenders, consolidate into one low monthly payment, and eliminate or lower all interest fees. This will also help to stop those harassing telephone calls and letters you receive in the mail as a professional debt consolidation team can take care of everything. There is really nothing to lose, enter your details today and find out what we can offer you with our Payday Loan Consolidation Services. If your credit allows, consider applying for a credit card and transferring your balances or obtaining a cash advance.

Loan Debt Consolidation

Debt Consolidation And Your Attitude Towards Money, The way you deal with your money on a daily basis can impact your life for years to come. We can show you that sound financial practices do not always require “doing without.” With financial education and planning, you employ learned skills to do so much more with what you have. When you are able to manage money efficiently, you can budget for emergencies, vacations, a new baby, holidays, college, a home, a car, or retirement.

Debt Consolidation Company

A strong Debt Consolidation Program can help you with your finances. We Understand the financial stress of illness and unemployment. In other words, you maybe able to sleep a little bit better at night, knowing that you have the power to control your financial future with one of the many Debt Consolidation Programs we have for you.

Payday Loan Debt Consolidation

You can use our trusted Payday Loan, Credit Card, & Medical Debt Consolidation Programs to become free from debt.

This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: www4.law.cornell.edu/uscode/17/107.html. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner. Not Available in All States

Copyright © 2002-2017 Federated Financial – All Rights Reserved | Disclosure Statement | Privacy Policy


Federated Financial, Debt Relief & Payday Loan Consolidation, debt consolidation loan.#Debt #consolidation #loan


Lower your Payments Starting Now!

Medical, & Credit Card Debt

Federated Financial is not only a consumer education organization dedicated to teaching the skills necessary for a secure financial future it is also the best place to get you out of debt once and for all! Our Debt Consolidation Company is in it’s 20th year of providing excellent service.

GET STARTED NOW!

FREE No obligation quote fill out the form below or Call Us Now!

We take your privacy seriously

Debt consolidation loan

Debt consolidation loan

Our program may be able to help YOU:

Lower your monthly payments
Significantly reduce your interest rates today!
Eliminate late fees and over limit fees
Stop collection calls
Avoid bankruptcy and legal escalation
Consolidate your Student Loans and Payday Loans

If you feel overwhelmed with debt, We may be able to Help!

Our Credit Card Consolidation, Medical Debt Consolidation, Payday Loan Consolidation & Advance Loan Consolidation programs are designed to eliminate your debt. Our full budget analysis allows us to properly facilitate your gradual debt reduction. Please give us a call to learn more or fill out the form above!

Payday Loan Consolidation

The thought of quick cash has lured many desperate people into taking out a payday loan. Then the vicious cycle begins: even if you manage to pay off the loan, new bills pile atop old bills and another loan has to be taken out for the next pay cycle. Add origination fees and rollover fees, and suddenly you are in a world of hurt. The way you deal with your money on a daily basis can impact your life for many years to come. We can show you that sound financial practices do not always require “doing without, or giving up.” All unsecured loans (loans without collateral), still tend to be higher interest than many alternatives with collateral.

Debt Consolidation Company

Payday Loan Consolidation Programs can help you with your finances. Interest rates charged by your lenders, consolidate into one low monthly payment, and eliminate or lower all interest fees. This will also help to stop those harassing telephone calls and letters you receive in the mail as a professional debt consolidation team can take care of everything. There is really nothing to lose, enter your details today and find out what we can offer you with our Payday Loan Consolidation Services. If your credit allows, consider applying for a credit card and transferring your balances or obtaining a cash advance.

Loan Debt Consolidation

Debt Consolidation And Your Attitude Towards Money, The way you deal with your money on a daily basis can impact your life for years to come. We can show you that sound financial practices do not always require “doing without.” With financial education and planning, you employ learned skills to do so much more with what you have. When you are able to manage money efficiently, you can budget for emergencies, vacations, a new baby, holidays, college, a home, a car, or retirement.

Debt Consolidation Company

A strong Debt Consolidation Program can help you with your finances. We Understand the financial stress of illness and unemployment. In other words, you maybe able to sleep a little bit better at night, knowing that you have the power to control your financial future with one of the many Debt Consolidation Programs we have for you.

Payday Loan Debt Consolidation

You can use our trusted Payday Loan, Credit Card, & Medical Debt Consolidation Programs to become free from debt.

This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: www4.law.cornell.edu/uscode/17/107.html. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner. Not Available in All States

Copyright © 2002-2017 Federated Financial – All Rights Reserved | Disclosure Statement | Privacy Policy


Debt Consolidation Refinance, Quicken Loans, consolidating debt.#Consolidating #debt


Consolidate Your Debt

Consolidating debt

With Rocket Mortgage by Quicken Loans, our fast, powerful and completely online way to get a mortgage, you can quickly see if you can take out cash to pay off high-interest debt.

Not comfortable starting online? Answer a few questions, and we ll have a Home Loan Expert call you.

The Basics

Consolidate Debt by Refinancing Your Mortgage

  • Refinance with some of the lowest rates in decades, and get cash to pay off your high-interest debt. Don’t wait these low rates won’t last forever!
  • Make one low monthly payment instead of several, and pay less overall every month. Unlike credit card interest, the interest on your mortgage is usually tax deductible.*
  • Even if you have less-than-perfect credit, we can help. Paying off your higher-interest debts faster can improve your credit rating. Find out if you could lower your monthly payment or take cash out to access money for your other bills. Visit QLCredit to see your free credit report and score and track all your debts in one place.
  • Interested in consolidating two mortgages? We can help you refinance both loans into one with a low rate that could significantly reduce your monthly mortgage payment.

We’ve helped more than 2 million Americans lower their monthly payment by refinancing. Contact us today to see how we can help.

Why You Should Choose Quicken Loans

  • You’ll get a completely online application process with less paperwork, and you can track the status of your mortgage application.
  • Our Home Loan Experts are available to answer your questions and help you understand the details so you get the right mortgage for you.
  • After you close your loan, you can manage your mortgage online without any hidden fees.
  • We service 99% of our mortgages, which means you can expect our great customer service to continue after you close.

Popular Loan Options for Consolidating Debt

  • FHA loan Refinance your debt into one low-cost loan today.
  • 15-year fixed-rate loan Consolidate your debt and pay it off sooner with our 15-year fixed-rate mortgage.
  • 30-year fixed-rate loan Have peace of mind always knowing your payment amount with a 30-year fixed.
  • VA loan Veterans and active military members can consolidate debt with a low fixed rate.

*Please consult your tax advisor.

Frequently Asked Questions

How can refinancing help me consolidate my high-interest debt?

The average credit card interest rate is around 15%. By comparison, mortgage rates are currently in the 3–4% range.

If the current value of your home is greater than your current mortgage balance, it means you have equity in your home. You may be able to use this equity to refinance your current mortgage and receive cash at a low interest rate to pay off your credit card debt.

What is equity? How can it help me consolidate my debt?

Home equity is the appraised value of your home minus the amount you still owe on your loan.

The more equity you have, the more money you may be able to get from a cash-out refinance. Many homeowners take cash out to pay off high-interest debt or make home improvements. Use our refinance calculator to see if you have enough equity to reach your financial goal.

How much does it cost to refinance?

It’s possible to add the costs associated with getting a new mortgage into the total refinance amount to avoid paying anything out of pocket at closing. However, refinancing to get cash out or consolidate your debt may result in a longer loan term or a higher rate, and that might mean paying more in interest overall in the long run.

Talk to a Home Loan Expert or use our refinance calculator to see if refinancing your home can help you consolidate your debt.

How often can I refinance my home?

Some states have limits on how soon or how often their residents can refinance a home loan; these limits are often designed to ensure that the refinance process benefits the homeowner. Regulations aside, it’s very important to make sure that refinancing helps you meet your financial goals. Deciding if it makes sense to refinance your home depends on a number of factors: Does your current lender have a prepayment penalty? Do you have enough equity built up in your home? Are interest rates lower now than they were when you first got your home loan? Do you plan to stay in your home for many years? Use our refinance calculator to see if refinancing your home can help you meet your goal.


How Does Debt Consolidation Affect Your Credit Report, credit card debt consolidation.#Credit #card #debt #consolidation


How Does Debt Consolidation Affect Your Credit Report?

Your debt consolidation credit report should look better than the credit report you had before you combined your bills. Ultimately, the goal is to improve your credit and not harm it. That is why it is important to understand how debt consolidation will affect your credit.

Your Debt Consolidation Credit Report: Positive Effects

One positive effect that debt consolidation can have on your credit score is the fact that several accounts will appear to be paid off. Even though debt consolidation creates a new credit account, lenders consider the other accounts as paid in full.

Timely repayment of new credit will also have a positive effect on your credit in the long term. Unfortunately, this raise in your credit score will take time, as you need a history payments on the account. If you continue to use your credit cards, it is important to keep up to date with all of your payments in order for your credit score to improve.

It is better to borrow against your equity line, than it is to apply for new credit cards repeatedly in order to take advantage lower interest rates. Using personal loans for debt consolidation is usually the best option, and as long as you pay your bills on time, your credit score should eventually rise.

Your Debt Consolidation Credit Report: Negative Effects

Depending on the actions that you take after debt consolidation, you can end up hurting your score. Missing a payment can bring your credit score down. It is important to keep up with your debt consolidation loan payments, and any other credit payments that you are required to make, otherwise your score will drop.

Closing credit card accounts after you have consolidated the debt can negatively impact your score. Never close your oldest accounts because they will give you the longest credit history. You may also want to wait until the debt is paid off before closing accounts. This is because your overall available credit will decrease, yet your debt level will remain. That makes it look like you have maxed out, and are therefore a high risk.

If you use a debt settlement program to consolidate your bills and the method includes negotiating a reduction of the debt that you owe, your credit report will be negatively impacted. Finding a way not to pay creditors the full amount that you owe does not look good.

Using balance transfers for debt consolidation may have a negative impact on your credit report as well. This is especially true if you apply for a new credit card in order to use an introductory interest rate. If you do not pay off the full balance by the end of the trial period, your interest rates will return to normal. Applying for new credit every six months is also frowned upon.

If you handle debt consolidation properly, the long term effect on your credit should be positive. Go about the wrong way, and you can do more harm than good to your credit report.

The content on this site is provided for informational purposes only and is not legal or professional advice. Advertised rates on this site are provided by the third party advertiser and not by us. We do not guarantee that the loan terms or rates listed on this site are the best terms or lowest rates available in the market. All lending decisions are determined by the lender and we do not guarantee approval, rates or terms for any lender or loan program. Not all applicants will be approved and individual loan terms may vary. Users are encouraged to use their best judgment in evaluating any third party services or advertisers on this site before submitting any information to any third party.


Discover Debt Consolidation, debt loans.#Debt #loans


debt loans

Why are an increasing amount of people looking to consolidate their debt via debt consolidation loans? Well, rising inflation rates coupled with extremely poor spending and saving habits have given rise to a serious

Guide to Debt Consolidation Loans in South Africa

The following piece will serve as a basic guide to consumers as to how debt consolidation loans in South Africa work. Most consumers in South Africa look at debt consolidation quite suspiciously. Many simply

Debt Consolidation Tips

Thousands of debt-ridden consumers around the country are turning to debt consolidation in a bid to dig themselves out of their dire financial situations. Debt tends to creep up on us as consumers –

Consolidate Debt in South Africa

South Africa has become well known for its culture of spending as opposed to saving – so the term “consolidate debt” comes up a lot. This spending mentality has caused thousands of South Africans

Debt consolidation – the answer you’ve been looking for

Wondering about the usefulness of debt consolidation? Is your rising debt threatening to spiral out of control? Are you suffering from sleepless nights and stressful days? Are you battling to keep tabs on the

Debt consolidation – can it work for you?

Debt consolidation is one of the best ways to make seemingly insurmountable debt a lot more manageable. Instead of having to pay several smaller monthly repayments on a number of different bills, you take

Gaining peace of mind with home loan debt consolidation

A home loan is a popular way for ordinary people to gain the means needed to buy a house. Also, home loans can be taken out to pay for renovations and repairs around the

A few Important Aspects Worth Noting

Debt consolidation gives debt-ridden consumers a last chance to clear their names. While there are definite benefits to consolidation, it is important for consumers to take a few precautions before jumping at the opportunity.

How can debt consolidation ease your financial woes?

Many consumers have found themselves in a position where they are simply not able to afford their credit or loan repayments. This can be attributed to several different factors including reckless spending, the general

Vital considerations before you consolidate debt

Consolidating your debt can afford you vital breathing space when it comes to your financial security. It is, however, neither wise nor advisable to rush into consolidation without taking proper consideration of your actual

Debt loans Debt loans


Debt Management Basics, Ch, bad debt loans.#Bad #debt #loans


Good debt vs. bad debt

Ch. 1: Understanding your debt

Ch. 2: Using equity to consolidate debt

Ch. 3: Reorganizing finances

Ch. 4: When to seek debt help

Ch. 5: The bankruptcy option

Debt is a concept as intricately intertwined with America these days as baseball, Mom and apple pie.

The amount of personal debt in this country is ever-increasing, and a large part of the reason is that credit has never been easier to get. Whereas credit card issuers previously looked for customers who could repay, today card issuers relish the chance to reel in those who’ll continuously charge beyond their means at 18 percent or 20 percent.

But debt is a complex concept. Not all of it is good — a fact a surprising number of Americans fail to realize until they’re in the hole — and yet not all of it is bad. When used intelligently, debt can be of tremendous assistance in building wealth.

One of the secrets, therefore, to being smart with your money is to differentiate between good debt and bad debt. While the differences often seem logical, it is a logic that apparently is missed by many Americans.

  • Mortgage.
  • School loan.
  • Real estate loan.
  • Business loan.
  • Credit card.
  • Store credit card.
  • Auto loan.

“When you buy something that goes down in value immediately, that’s bad debt,” says David Bach, CEO of Finish Rich Inc., and author of “The Finish Rich Workbook.” “If it has no potential to increase in value, that’s bad debt.”

Good debt

“Good debt is investment debt that creates value; for example, student loans, real estate loans, home mortgages and business loans,” says Eric Gelb, CEO of Gateway Financial Advisors and author of “Getting Started in Asset Allocation.”

Robert D. Manning, a professor of finance at the Rochester Institute of Technology, also recommends taking on debts that are tax-deductible and debts that produce more wealth in the long run.

“If you are talking about reducing current debt, that’s where it starts to get nuanced,” says Manning. “If you take a home equity loan because you have 17 percent credit card, and you go with a 6 percent loan that’s tax-deductible, that’s good debt.”

These general rules of thumb set some clear delineations — buying a home or refinancing to get rid of excessively high rates is usually good debt, as is generating debt to buy high-return stocks, bonds and other investments.

Bad debt

The concept of bad debt comes in when discussing the purchase of disposable items or durable goods using high-interest credit cards and not paying the balance in full.

“The trouble is most people are not organized enough to retire the entire balance before the due date,” says Gelb.

Every month that you make a partial payment on your credit account you are charged interest. The disposable or durable item you purchased continues to lose value, and the amount you paid for it continues to increase.

“When you buy clothes, they’re probably worth less than 50 percent what you pay for them when you walk out the door,” says Bach. “So if you borrowed to pay for them, that’s bad debt.”

Table of contents

Ch. 1: Understanding your debt

Ch. 2: Using equity to consolidate debt

Ch. 3: Reorganizing finances

Ch. 4: When to seek debt help

Ch. 5: The bankruptcy option

Credit rating effect

Not to mention what that debt could potentially do to your credit rating. “Total personal debt should not exceed 36 percent of your total income,” says Gelb.

Keeping the debt-to-income ratio in mind, it’s also important not to miss payments. “Missed payments are trouble,” he says. “A representative of Citibank said if you don’t pay within 30 days, they report that to the credit bureaus.”

When it comes to buying durable goods that won’t contribute to wealth generation, Bach offers a basic rule of thumb. “My grandma used to say that if you’re going to buy something that doesn’t go up in value, and you can’t afford to pay cash, then you can’t afford it.”

Exacerbating the bad debt factor is that people will apply for store credit for the savings offers that say if you open a credit card account today, you can take 10 percent to 20 percent off the cost of your purchase. What people often don’t realize is how much of that savings will be destroyed by the high interest rate on the card if they fail to pay for the items immediately.

“You can open a store credit card account,” says Bach, “and what they’re not telling you is that after the first few months, the rate jumps to 20 percent or greater.”

Driving into debt

Another bad debt area is auto debt. While most people need an automobile, and the ultimate cost of an auto is higher than many people can pay in one lump sum, the way people go about it — namely, purchasing more car than they need — turns it into bad debt.

When is it worth it?

“What we would normally consider bad debt can turn into good debt in certain circumstances,” says Catie Fitzgerald, a personal finance coach and registered investment adviser in Henderson, Nev. “If you use debt to buy a car that gets better gas mileage than your old vehicle, you could end up better off financially.”

Bach considers auto debt a Catch-22. “People borrow to buy cars before homes,” says Bach, “and that’s unfortunate. For most people, their first major loan is a car loan. That’s guaranteed to go down in value. So you really want to borrow less. For example, instead of rushing out to borrow to buy a $50,000 BMW, you’d be better off buying a $25,000 car.”

The best debt

The best type of debt is debt that builds wealth over the long run, and the No. 1 example of that is mortgage debt.

Table of contents

Ch. 1: Understanding your debt

Ch. 2: Using equity to consolidate debt

Ch. 3: Reorganizing finances

Ch. 4: When to seek debt help

Ch. 5: The bankruptcy option

“Home values have increased an average of 6.5 percent a year over the past 30 years,” says Bach. “So when you borrow to buy a home, chances are that’s good debt. You’ll build value.”

Bach heavily promotes the idea of homeownership, saying that everyone needs to own where they live. “About 40 percent of Americans are renters,” says Bach, “and the fastest way to wealth in America is buying where you live.”

Bach cites some shocking numbers to back this up. “The average renter has a median net worth of $4,000, and the average homeowner has a median net worth of about $150,000.”

Manning also emphasizes what a good time this is to build wealth through debt. “This is the most advantageous time ever to be in debt,” says Manning, “in terms of opportunities to get low-interest loans or to renegotiate or refinance.”

Duh, debt?

One of the reasons so many Americans seem mired in bad debt (Bach reports that the average American carries approximately $8,400 in credit card debt) is that financial education is practically nonexistent. “This type of commonsense stuff isn’t taught in school,” says Bach, “and most Americans don’t realize how bad high-rate credit cards are hurting them.”

Fitzgerald advises teaching your children the difference between good debt (debt that’s used to buy assets that grow in value over time) and bad debt (debt that’s used to buy things that will lose value) early on.

Gelb opts for a more hands-on approach. “Give your children an allowance (without strings) beginning when they’re in kindergarten and offer them the opportunity to perform extra jobs around the house for money. Stop buying them everything, and teach them how to make choices with their own money-buying decisions.” The mistakes they make will help them learn and grow.

“People are getting in debt before they have a job,” says Manning. “Education is important. We used to encourage kids to save, and that has been missed. Students now refer to their credit cards as ‘yuppie food stamps’. They see cards as entitlement, and see they will be in debt all their lives.”

Fitzgerald recommends teaching by example. Treat credit cards like emergency safety nets and your children will likely learn some money management skills. “If you have to use your credit card, immediately revise your budget, paring back on nonessential spending. Allocate the saved dollars to a pay-off plan to bring your debt balance down to zero as soon as possible,” she says.


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Debt consolidation loans

All your debts in one manageable loan

If you’ve borrowed from different lenders, a debt consolidation loan could help you take control of your finances and keep track of your money.

Loans are subject to status. Early settlement fees apply.

✔ Manage your debts with just one loan 1

✔ Quick and easy application

✔ Personal price quote – with no credit footprint 2

0 APR Representative

over 2-5 years. (Your rate may differ 3 )

Take control of your debt with a Barclayloan

Having just one loan could be more straightforward and easier to manage than a number of payments to different lenders.

But it’s worth noting that consolidating debts might involve payment of a higher rate of interest or charges – or both. Consolidating debts might also increase the overall period required for repayment.

Debt consolidation overview

Discover your loan rate without affecting your credit score

Knowing how much you can borrow really helps when consolidating your debt. And, unlike some other lenders, in many cases we can give you a personalised price quote up front – without impacting your credit score. To find your loan rate, simply log in to Online Banking or Barclays Mobile Banking, if you’re registered 2 .

You could get your money straightaway

It’s quick and easy to apply and, if your loan application is approved and you’ve signed your loan agreement online, the debt consolidation money is usually transferred to your current account within a few minutes 4 .

If you take out a Barclayloan and another lender offers you a like-for-like unsecured loan with a lower APR, you can claim under our guarantee – within 30 days of the date we signed your Barclayloan agreement.

We’ll reduce the interest rate to produce an APR equal to the competing offer and recalculate your monthly repayments to reflect the reduced interest rate. Please read our full price guarantee terms and conditions.

Fixed monthly repayment

This could help you budget.

Choose your payment term

Depending on the loan amount.

Already have a Barclayloan and need more funds? You can apply to increase your borrowing with us.

If you just want to take out a second loan instead of topping up, that could be an option too.

Repaying your loan early

You have the right to repay your loan early, in part or full, at any time. We’ll charge a fee equal to 30 days’ interest on the amount you’re repaying, as well as any other interest that’s due.

Eligibility

To apply online, you’ll need to:

✔ A Barclays current or savings account, mortgage or Barclaycard

✔ To be aged 18 or above

You can use your loan for almost anything, apart from:

  • Business reasons
  • Investments, including buying stocks and shares
  • Timeshares
  • Purchasing property (home improvements are fine)
  • Gambling-related expenses
  • Repaying CCJs (county court judgments)
  • A purchase made by combining this loan with any others

Resume an application

If you’ve already started a loan application and have saved your progress, it’s easy to pick up where you left off.

If you applied via Online Banking

Log in to Online Banking here, and we’ll take you straight to your saved application.

If you used our online application form

If you started your application via our online form, we’ll have sent you an email with your reference number. You can enter the number here.

Our lending commitments and what we ask of you

As a lender, we have a responsibility to act fairly and as part of this we have committed to follow the Standards of Lending Practice. This note sets out some of our key responsibilities and what we ask of you, to ensure that the relationship works well for both of us.

  • We will lend responsibly and aim to provide a product that is affordable for you.
  • We will provide you with information about our products and services and how they work, in a clear and understandable way, so that you can decide what’s best for you and your needs.
  • We will endeavour to make sure our products and services offer, wherever possible, the flexibility to meet your needs.
  • We will treat you fairly and reasonably at all times and make sure that you are provided with a high level of service.
  • If you tell us about any inaccuracies, for example around the personal information we hold about you, we will act quickly to put it right.
  • We will always aim to help you if we see, or you tell us, that you are having trouble financially. We will seek to understand your overall circumstances, try and identify options that you can afford and where appropriate, provide a reference to free debt advice.

What we ask of you

  • We ask you to think carefully about whether you can afford to repay the money you want to borrow and to be open in your dealings with us.
  • Take care of any cards, PINs, online log-in details and other security information to help prevent fraud and help us to protect your accounts.
  • Tell us as soon as possible if your card has been lost or stolen, or if you know or suspect someone is misusing your confidential information e.g. your PIN or online log-in details.
  • Carefully check your account statements to make sure they are accurate. If anything isn’t right, please get in touch with us.

Please let us know if

  • Your contact details change, so we can keep our records up to date.
  • Your circumstances change, particularly if what’s happened is likely to cause you difficulties in managing your account or financial problems.
  • You think that you won’t be able to keep up with your repayments. The sooner you do this, the more likely it is we’ll be able to find a way to help you.

We would also encourage you to refer to the terms and conditions associated with your current account, credit card or personal loan.