What is Debt Consolidation?Written by Tim Gorman
Debt consolidation may be answer for anyone drowning in a sea of unpaid bills. Debt consolidation lumps all of your unsecured debts including credit card bills, doctor, dentist, veterinary, and other service provider bills – any bills that are not secured by collateral or property such as an automobile or a house – into one monthly payment.
Types of Debt Consolidation
There are several ways to achieve debt consolidation, including one that does not require borrowing more money. Debt consolidation options include:
1. Home Equity Loans – A popular method of debt consolidation, home equity loan is a mortgage based on amount of equity you have invested in your home. It should be noted that home equity loans are secured by your house, which means if you fail to make payments on schedule, and according to terms of loan, you risk losing your house.
2. Personal Loans – Many banks and other lenders offer unsecured personal loans based on your annual income. The amount that can be borrowed will vary from person to person, and not everyone will qualify for this type of loan. To use personal loan proceeds for debt consolidation simply deposit loan money into your bank account and write checks to your creditors, or ask lender to disburse money to your creditors for you.
3. Private Loans – Some people may be able to borrow from family or friends and arrange very individual terms. Borrowing from others in your personal life can be tricky business and it is advisable to make sure any arrangements are made in writing.
Financial Planning for BeginnersWritten by Tim Gorman
Financial planning at an early age may seem complicated, however it can be easier than you might think. At age of 25 most of us are just beginning our married life, and there are homes and automobiles to buy and children to plan for. This leaves little time to plan for future. These are some simple steps that you can take to ensure that you and your family will be able to handle unexpected emergencies and expenses.
* Buy Insurance Insurance is one of easiest ways that you can be sure that your family is protected financially in event of an accident. Medical bills alone from one accident can cause a family to be in a state of financial distress for years. Although medical and automobile insurance rates are high, return is much greater. Life insurance is also a very key factor in planning for your financial stability. In event that a family member dies, you could be in debt for as much as $50,000 for funeral expenses. Insurance may seem like a useless expense when a family is deciding on a budget, however, budget will be completely diminished in event of an accident without insurance. Remember, key word in phrase "financial planning" is planning.