What is Debt Consolidation?

Written by Tim Gorman

Debt consolidation may berepparttar 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,repparttar 146418 home equity loan is a mortgage based onrepparttar 146419 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 torepparttar 146420 terms ofrepparttar 146421 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 depositrepparttar 146422 loan money into your bank account and write checks to your creditors, or askrepparttar 146423 lender to disburserepparttar 146424 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 Beginners

Written by Tim Gorman

Financial planning at an early age may seem complicated, however it can be easier than you might think. Atrepparttar 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 forrepparttar 146417 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 ofrepparttar 146418 easiest ways that you can be sure that your family is protected financially inrepparttar 146419 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,repparttar 146420 return is much greater. Life insurance is also a very key factor in planning for your financial stability. Inrepparttar 146421 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,repparttar 146422 budget will be completely diminished inrepparttar 146423 event of an accident without insurance. Remember,repparttar 146424 key word inrepparttar 146425 phrase "financial planning" is planning.

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