This article is very helpful for those considering debt consolidation, and the video is just some kid trying to be funny. Sometimes he is, and sometimes he is not.
Home-owners and tenants who are thinking about consolidating their debt often wonder how much money they will save and what the overall advantages will be for them when they consolidate all of their debt.
There are really several areas to consider and consumers may consider some areas more important than others depending on their personal situation. Savings can be measured in terms of reduced interest rates, reduced interest costs, lower monthly payments, one payment vs. several payments each month, asking for multiple quotes and the simple act of getting your financial situation under control with a well defined plan.
Most people are interested in how much money they will save. Your loan manager can assist you to figure out the total interest cost of your new loan after you have consolidated everything vs. what you would pay if you did not consolidate. If you have a lot of credit card debt and run a monthly unpaid balance each month, you may find that you will save a great deal of money by consolidating your debt.
If your objective is to reduce your monthly payments, consolidating your debt into one loan and then extending the term as long as you can will have the effect of decreasing your monthly payments. You will have funds available for other areas if needed.
Consumers should recognize that they will generally pay more interest over the life of a longer term loan than they would if they paid their loan off more quickly. Often this is quite acceptable to many customers, because their objective is to reduce their monthly payments as low as possible. If they have spare funds sometime in the future, they can pay their loan off more quickly often, with out any penalty.
Other consumers are tired of making multiple payments to several different loans each month at different times in the month. A debt consolidation loan can be used to blend all of the loans together and then make one payment a month or every two weeks.
You can even align your payment with your paycheck so that you do not have to worry if there is always money to pay your loan in your bank account. Some people will combine loans, credit cards and mortgages all into one debt consolidation mortgage with one payment each month to keep things simple and un-complicated for them. While this approach may not always save them money, they can simplify their lives and make only one payment each month towards their debt.
Another major advantage of consolidating your debt and bringing it all together under one loan or mortgage is that it forces customers to review their debt situation and take control of their debt before it gets out of hand.
Applying for a debt consolidation loan or a home equity loan with several lenders also will help you understand who has the best rates and how much you can save between lenders.
Online applications and online quotes are free. Consumers can compare the monthly payments, the interest charged and any fees that might be included. A simple comparison will quickly tell you how much you can save between lenders.
Weird Parody on Bad Credit and Consolidation
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