Perks and Pitfalls of Debt Consolidation

Written by Tim Gorman

Whether you want to pursue debt consolidation in order to make a good financial situation better or to pull yourself back fromrepparttar brink of bankruptcy you will want to considerrepparttar 146421 good and bad things that may result fromrepparttar 146422 choices you make.

Perks and Potential Benefits of Debt Consolidation

1. Debt consolidation should lower your monthly payments, and preferably your interest rates as well. This will lowerrepparttar 146423 long term cost of your debt.

2. Debt consolidation may improve your credit rating and make it easier for you to purchase a home or automobile.

3. When done properly debt consolidation can remove a great deal of emotional and financial pressure from your life.

4. Debt consolidation may help many people avoid having to file for bankruptcy.

5. A significant benefit of debt consolidation isrepparttar 146424 elimination of harassing phone calls from creditors and collection agencies. This will happen more quickly when debts are paid off through home equity or personal loans. It should still happen over time through debt management plans whenrepparttar 146425 creditors realize you are working in good faith to pay off your debt.

Pitfalls or Things to Avoid in Debt Consolidation

1. Avoid debt consolidation loans or plans that require high up front fees. Reputable lenders and credit counseling agencies generally charge low fees, or no fees.

Seven Investment Terms Everyone Should Know

Written by Tim Gorman

For those who have never given their financial future a second thought,repparttar term "Financial Planning" could be a scary one. Investments can be a smart way to invest money for your future, but it can be confusing for those who have no experience inrepparttar 146420 financial business. Before you consult a financial planner it is wise to become familiar with some ofrepparttar 146421 terminology that you are likely to hear from him or her.

* Mutual Fund-An investment made with money that is collected by individuals with an investment goal in mind. The mutual fund is handled primarily buy a person known asrepparttar 146422 fund manager. Mutual funds are easy and cost efficient, since you are not responsible for makingrepparttar 146423 decision as to where to investrepparttar 146424 money.

* Asset Allocation Fund-A mutual fund that incorporates several types of investments such as stocks, bonds, real estate, and foreign stocks. These are typically forrepparttar 146425 small investors who want to invest in a variety of funds in order to maintain a constant return.

* Risk-Return Trade-Off-This isrepparttar 146426 amount of money that you can stand to lose versusrepparttar 146427 amount of money you are willing to invest. Investments that are low-risk often have low payoffs, while investments that are high risk usually have higher payoffs. When investing money you must determinerepparttar 146428 amount of money you can lose before determining how much money you will invest and where you will invest it.

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