Bill consolidation loans can lower rates and help you pay of
your debt faster. However, you want to be sure that you factor
in the cost of fees, find low rates, and pick a short term loan.
These tips will ensure that you don't end up spending more by
Factor In Fees
Depending on the type of loan you choose, fees can vary from
thousands to nothing. Refinancing a home mortgage and using the
equity to pay off bills is appealing to many. But the thousands
that it costs to refinance should be considered, especially if
you aren't getting a better rate on your mortgage.
Home equity loans and lines of credit can be used with little or
no fees. Their rates are higher, but for smaller amounts they
can still be cheaper. Personal loans are also an option since
they still beat high interest credit cards.
Make Rates Pay
Before consolidating your bills, make sure that your loan rate
will be lower that what you are currently paying. This might
mean that you don't consolidate all your loans. For example,
student loans often have the lowest rates possible, better than
a mortgage rate.
If you can only consolidate part of your debt, pay off the
accounts with the highest interest rates for the greatest
Go Short - On Terms
Choosing shorter terms on your loan will save you money on
interest costs. While smaller payments are tempting, the long
term interest payments can easily be more than what you pay now.
Credit card payments are set to pay off your balance in five
years. So if you can financially handle your current payments,
pick a five term loan.
Shopping online for a loan can also help you save money in
interest and loan costs. Many financing companies offer more
competitive rates online than in their conventional offices.
Request quotes from several lenders and look at their terms.
Even a difference as little as an eighth of a percent can
financially make a big difference.
Close Paid Accounts
To protect your credit score, make sure to close accounts once
they are paid off. This reduction in your available credit will
set you up for better rates when you do choose to open a new
account, such as a mortgage.
Taking the Time to Find the Best Loan Offers
When you're looking for a loan, it might seem easy to simply
accept the first loan offer that you receive. While it's true
that you might receive a good deal on a loan this way, there's
an even greater chance that you'll end up missing out on...read more
Loans For Bad Credit
Personal debt in the UK has soared to record levels over the
past few years. The Bank of England has recently confirmed that
personal debt on a national level now amounts to more than
£1,065 billion. Recent media reports suggest however that...read more