Do You Believe Any of These Top 10 Myths About Debt Consolidation?
Jo Ann LeQuang asked:
Most people facing growing debt and limited resources have probably looked around for financial solutions and heard a little bit about debt consolidation. Debt consolidation is a great financial option to overcome overwhelming debt, but it is not right for everyone. But before you can figure out if it is right for you, you have to realize that some of what you may have thought about debt consolidation … is wrong.
Of all the financial plans available for people dealing with overwhelming debt, debt consolidation is probably the most valuable and the least understood. In fact, you may already believe some of these common myths about debt consolidation. Find out the truth!
Myth #1 Debt consolidation is the same or similar to debt management, debt settlement, and bankruptcy.
Truth Debt consolidation is nothing like those other programs. In truth, it is not so much a “program” (you can even do it on your own, if you know enough) but more of a strategic approach.
In debt consolidation, you lump all of your debts together and repackage them. Debt settlement and debt management typically involve dealing with a company or counselor and the object is to reduce the amount you owe. Bankruptcy is a legal proceeding that involves a date with a judge.
Myth #2 Debt consolidation reduces your debt.
Truth No, it doesn’t. If you owe a total of $80,000 on several credit cards and loans and you consolidate that debt, you still owe $80,000.
Debt consolidation does not re-negotiate, settle, write off, or reduce any of your debt. What possible advantage is re-organizing your debt like that?
If you have a lot of loans at high interest rates, repackaging those higher-interest debts into one larger loan at a lower rate reduces your interest and the amount you have to pay. This means you can either pay less a month or (even better) pay the same amount but get the debt paid off sooner.
Myth #3 Debt consolidation will hurt my credit score.
Truth Done properly, debt consolidation will not impact your credit score or credit report negatively. In fact, debt consolidation may even improve your credit score! That’s because you’ll be paying off a bunch of smaller loans and any time a loan is paid in full, that helps your credit score.
Myth #4 Debt consolidation requires getting help from an outside agency or a lawyer.
Truth While there are companies that specialize in debt consolidation programs, you do not have to use them to consolidate your debt.
Of course, if you want to consolidate your debt on your own, you have to know a bit about how to do it and what the options are. But it can definitely be a do-it-yourself project for people good with money (or who are willing to learn enough to get good with money).
Debt consolidation is also not necessarily visible to outsiders. Your bank, the credit bureau, and other parties may not even be aware that you have consolidated debt.
Myth #5 Debt consolidation is something for financial losers and lightweights, not for people who know how to manage money.
Truth This is the most far-out myth about debt consolidation. Debt consolidation is a principle that is used in business and by the super-wealthy all of the time. It is a way of organizing and structuring your debts in a way that is most advantageous to you.
Myth #6 Debt consolidation is just robbing Peter to pay Paul; you’re just getting more debt!
Truth Debt consolidation is indeed a way for you to pay off one debt by getting another debt. But not all debts are equal.
As an example, let’s say that you owe $10,000 and the loan is set up so that you have to pay 22% interest. For example, let’s suppose that I go to my credit union and work out a deal to borrow $10,000 at 12% interest. While both debts are still in the amount of $10,000, the debt at 12% interest is a better deal for me. I won’t have to pay as much per month or, if I make the biggest payments I can, I can pay it off sooner.
Myth #7 Debt consolidation requires you to be a homeowner.
Truth There is a grain of truth to this, in that owning a home definitely offers an advantage to anyone who wants to consolidate debt. (It doesn’t matter if your home is paid for or not, but you do need some home equity.) However, you can consolidate debt without owning a home, too.
Myth #8 Debt consolidation will make it harder for me to get future loans.
Truth In most cases, it is unlikely that anyone but a forensic accountant could figure out that you consolidated your debt (unless you go through a debt consolidation companythat might leave a paper trail).
If you borrow money in one loan and then take out another, more advantageous loan to pay off the first one, you’re more likely to leave a paper trail of somebody who pays off debt responsibly. It is more likely to make you a desirable creditor.
Myth #9 People who consolidate debt just wind up digging themselves in deeper in debt!
Truth It is absolutely possible to consolidate your debt and then keep spending and get yourself in a big mess. That’s why you need good information and a plan to pay off your existing debt, manage your finances now, and start planning for your financial future.
There is no reason that debt consolidation cannot work to get you out of debt for good, but you have to have a plan.
Myth #10 Debt consolidation will allow me to write off some of my debts and it will stop bill collectors from calling.
Truth Let’s take these one at a time.
Unlike bankruptcy, debt consolidation will not allow you to write off any of your debtnot a penny of it. Whatever you owed as a debt before debt consolidation is the amount you’ll owe after debt consolidation.
The advantage is just that you structure it in a more favorable loan. You do not get existing debts cancelled or decreased! Now it’s true you can work that out in other debt management solutions (debt settlement lets you reduce debt, bankruptcy will let you write some debt off) but they come at a very high price. Both of these approaches will have a negative impact on your credit score, will make it hard for you to get future loans, and stay on your record for quite a while. Bankruptcy, in particular, is an extreme solution that involves an actual court proceeding and a judge who has the authority to make certain decisions about your financial situation (including forcing you to sell some items to pay off debts).
Debt consolidation can only stop bill collectors indirectly. Here’s how: let’s say you have six debts and you’re getting calls all of the time. If you consolidate your six debts into one large debt consolidation loan at more favorable terms, you’ll pay off all of those debts. Bye-bye, bill collectors!
However, if you don’t pay off your new debt consolidaiton loan on time, the bill collectors will start calling again.
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Most people facing growing debt and limited resources have probably looked around for financial solutions and heard a little bit about debt consolidation. Debt consolidation is a great financial option to overcome overwhelming debt, but it is not right for everyone. But before you can figure out if it is right for you, you have to realize that some of what you may have thought about debt consolidation … is wrong.
Of all the financial plans available for people dealing with overwhelming debt, debt consolidation is probably the most valuable and the least understood. In fact, you may already believe some of these common myths about debt consolidation. Find out the truth!
Myth #1 Debt consolidation is the same or similar to debt management, debt settlement, and bankruptcy.
Truth Debt consolidation is nothing like those other programs. In truth, it is not so much a “program” (you can even do it on your own, if you know enough) but more of a strategic approach.
In debt consolidation, you lump all of your debts together and repackage them. Debt settlement and debt management typically involve dealing with a company or counselor and the object is to reduce the amount you owe. Bankruptcy is a legal proceeding that involves a date with a judge.
Myth #2 Debt consolidation reduces your debt.
Truth No, it doesn’t. If you owe a total of $80,000 on several credit cards and loans and you consolidate that debt, you still owe $80,000.
Debt consolidation does not re-negotiate, settle, write off, or reduce any of your debt. What possible advantage is re-organizing your debt like that?
If you have a lot of loans at high interest rates, repackaging those higher-interest debts into one larger loan at a lower rate reduces your interest and the amount you have to pay. This means you can either pay less a month or (even better) pay the same amount but get the debt paid off sooner.
Myth #3 Debt consolidation will hurt my credit score.
Truth Done properly, debt consolidation will not impact your credit score or credit report negatively. In fact, debt consolidation may even improve your credit score! That’s because you’ll be paying off a bunch of smaller loans and any time a loan is paid in full, that helps your credit score.
Myth #4 Debt consolidation requires getting help from an outside agency or a lawyer.
Truth While there are companies that specialize in debt consolidation programs, you do not have to use them to consolidate your debt.
Of course, if you want to consolidate your debt on your own, you have to know a bit about how to do it and what the options are. But it can definitely be a do-it-yourself project for people good with money (or who are willing to learn enough to get good with money).
Debt consolidation is also not necessarily visible to outsiders. Your bank, the credit bureau, and other parties may not even be aware that you have consolidated debt.
Myth #5 Debt consolidation is something for financial losers and lightweights, not for people who know how to manage money.
Truth This is the most far-out myth about debt consolidation. Debt consolidation is a principle that is used in business and by the super-wealthy all of the time. It is a way of organizing and structuring your debts in a way that is most advantageous to you.
Myth #6 Debt consolidation is just robbing Peter to pay Paul; you’re just getting more debt!
Truth Debt consolidation is indeed a way for you to pay off one debt by getting another debt. But not all debts are equal.
As an example, let’s say that you owe $10,000 and the loan is set up so that you have to pay 22% interest. For example, let’s suppose that I go to my credit union and work out a deal to borrow $10,000 at 12% interest. While both debts are still in the amount of $10,000, the debt at 12% interest is a better deal for me. I won’t have to pay as much per month or, if I make the biggest payments I can, I can pay it off sooner.
Myth #7 Debt consolidation requires you to be a homeowner.
Truth There is a grain of truth to this, in that owning a home definitely offers an advantage to anyone who wants to consolidate debt. (It doesn’t matter if your home is paid for or not, but you do need some home equity.) However, you can consolidate debt without owning a home, too.
Myth #8 Debt consolidation will make it harder for me to get future loans.
Truth In most cases, it is unlikely that anyone but a forensic accountant could figure out that you consolidated your debt (unless you go through a debt consolidation companythat might leave a paper trail).
If you borrow money in one loan and then take out another, more advantageous loan to pay off the first one, you’re more likely to leave a paper trail of somebody who pays off debt responsibly. It is more likely to make you a desirable creditor.
Myth #9 People who consolidate debt just wind up digging themselves in deeper in debt!
Truth It is absolutely possible to consolidate your debt and then keep spending and get yourself in a big mess. That’s why you need good information and a plan to pay off your existing debt, manage your finances now, and start planning for your financial future.
There is no reason that debt consolidation cannot work to get you out of debt for good, but you have to have a plan.
Myth #10 Debt consolidation will allow me to write off some of my debts and it will stop bill collectors from calling.
Truth Let’s take these one at a time.
Unlike bankruptcy, debt consolidation will not allow you to write off any of your debtnot a penny of it. Whatever you owed as a debt before debt consolidation is the amount you’ll owe after debt consolidation.
The advantage is just that you structure it in a more favorable loan. You do not get existing debts cancelled or decreased! Now it’s true you can work that out in other debt management solutions (debt settlement lets you reduce debt, bankruptcy will let you write some debt off) but they come at a very high price. Both of these approaches will have a negative impact on your credit score, will make it hard for you to get future loans, and stay on your record for quite a while. Bankruptcy, in particular, is an extreme solution that involves an actual court proceeding and a judge who has the authority to make certain decisions about your financial situation (including forcing you to sell some items to pay off debts).
Debt consolidation can only stop bill collectors indirectly. Here’s how: let’s say you have six debts and you’re getting calls all of the time. If you consolidate your six debts into one large debt consolidation loan at more favorable terms, you’ll pay off all of those debts. Bye-bye, bill collectors!
However, if you don’t pay off your new debt consolidaiton loan on time, the bill collectors will start calling again.
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Tags: Debt Settlement, Financial Solutions, Management Debt
Tips on How to Save on Car Insurance
Roxel Pudol asked:
Money talks, they say. Maybe! For most of the time it’s true knowing that we are living in a material world. People do anything that they can to save money, because obviously, you cannot have it in just a snap of the finger.
For most people, car insurance is the single largest Insurance expense after health insurance. It seems that its rates are high and are forever climbing. So if you want to save money, here are some tips to lower your car insurance.
It pays to shop and compare. Regulatory changes at the state level may have encouraged new companies to jump into the market, thereby increasing competition and reducing rates per consumers.
Another way to reduce the rates is to increase your deductibles. A 200-dollar deductible sounds wise until you learn that the cost for having a deductible at this threshold can drive your rates through the roof. Considering a deductible of $1000 to save on premiums, you can fix minor mishaps on your own.
Consider dropping collision if your automobile is worth less than two or three thousand dollars. if your car is totaled, you assure that you will get nothing from your insurer. But the savings you realize by dropping collision coverage can be used as a down payment for your nest car.
Most companies give discounts if your car has safety features like airbags and anti-theft immobilizers. Older cars, for the most part, do not have airbags, but if you have a model that has airbags, you will save money on your insurance.
If you drive your car for business, a portion of your insurance costs may be deductible. On the other way around, you rates may be increased if your insurer knows that you use car more for business than pleasure.
Another one is to combine policies. Purchase your homeowners, auto and life insurance policies from the same broker and you may save on your premiums. Sam insurance companies reward policy holder if they “one shop” purchase all of their insurance needs through one company.
Consider the car before you buy it. Maybe a less sporty model car would be ideal than a Porsche Boxster that could sharply raise your insurance rates.
Driver’s Education course is also a factor in determining you premium. Let your insurance company know that you are a safe driver.
If you had moving violations that were reported to you insurance company, make sure that your insurer adjusts your premium downward if several years have gone by since the occurrence. You could be paying a higher premium that you actually don’t deserve.
It is also a must to check you policy if the insurer has the wrong address, town or zip code on your policy, you could find yourself paying more than you should.
Reducing your car insurance costs should not be an impossible feat. These few tips can help you realize how much savings you can get the next time your policy comes up for review.
debt consolidation loans
Money talks, they say. Maybe! For most of the time it’s true knowing that we are living in a material world. People do anything that they can to save money, because obviously, you cannot have it in just a snap of the finger.
For most people, car insurance is the single largest Insurance expense after health insurance. It seems that its rates are high and are forever climbing. So if you want to save money, here are some tips to lower your car insurance.
It pays to shop and compare. Regulatory changes at the state level may have encouraged new companies to jump into the market, thereby increasing competition and reducing rates per consumers.
Another way to reduce the rates is to increase your deductibles. A 200-dollar deductible sounds wise until you learn that the cost for having a deductible at this threshold can drive your rates through the roof. Considering a deductible of $1000 to save on premiums, you can fix minor mishaps on your own.
Consider dropping collision if your automobile is worth less than two or three thousand dollars. if your car is totaled, you assure that you will get nothing from your insurer. But the savings you realize by dropping collision coverage can be used as a down payment for your nest car.
Most companies give discounts if your car has safety features like airbags and anti-theft immobilizers. Older cars, for the most part, do not have airbags, but if you have a model that has airbags, you will save money on your insurance.
If you drive your car for business, a portion of your insurance costs may be deductible. On the other way around, you rates may be increased if your insurer knows that you use car more for business than pleasure.
Another one is to combine policies. Purchase your homeowners, auto and life insurance policies from the same broker and you may save on your premiums. Sam insurance companies reward policy holder if they “one shop” purchase all of their insurance needs through one company.
Consider the car before you buy it. Maybe a less sporty model car would be ideal than a Porsche Boxster that could sharply raise your insurance rates.
Driver’s Education course is also a factor in determining you premium. Let your insurance company know that you are a safe driver.
If you had moving violations that were reported to you insurance company, make sure that your insurer adjusts your premium downward if several years have gone by since the occurrence. You could be paying a higher premium that you actually don’t deserve.
It is also a must to check you policy if the insurer has the wrong address, town or zip code on your policy, you could find yourself paying more than you should.
Reducing your car insurance costs should not be an impossible feat. These few tips can help you realize how much savings you can get the next time your policy comes up for review.
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Tags: Insurance Companies, Insurer, Older Cars
Teeth Whitening System – a Complete Consumer Guide
Alien asked:
Teeth whitening is the most commonly requested cosmetic dentistry procedure. Teeth whitening falls into the cosmetic dentistry category because it is designed to enhance your appearance by reducing tooth discoloration and staining to elicit a brighter, whiter smile.
Many people are satisfied with the sparkle they get from brushing twice daily with a fluoride-containing toothpaste, cleaning between their teeth once a day and the regular cleanings at your dentist’s office. If you decide you would like to go beyond this to make your smile look brighter, you should investigate all of your options.
As white teeth are subconsciously associated with youth, they have become desirable. This has been made more apparent with the spread of American culture worldwide,[citation needed] where an especially white smile is coined a “Hollywood smile”. The procedure to bleach teeth uses oxidising agents such as hydrogen peroxide or carbamide peroxide to lighten the shade of the tooth. The oxidising agent penetrates the porosities in the rod-like crystal structure of enamel and oxidises interprismatic stain deposits; over a period of time, the dentine layer, lying underneath the enamel, is also bleached. Tooth bleaching will generally last from 5 to 7 years, with variations from factors such as cigarette smoking, and tea and coffee consumption.
But first, what causes tooth discoloration? Remember that aging, chemical damage and staining are factors that contribute to discoloration as are medications, tea, coffee, cola soft drinks and cigarette.
There are also other factors that affect the color of teeth like genetics and disease. Some people have naturally whiter teeth enamel and their children can acquire this gene trait. But if you suspect that there’s a physiological factor behind the color of your teeth, it is best to consult your physician too so you can better inform your dentist
Teeth whitening corrects the discoloration in your teeth by removing the staining on your teeth. And there are a number of methods or techniques that can be used to achieve this such as the following: mild acid whitening, chemical whitening, abrasive teeth whitening and the latest one: laser teeth whitening.
Teeth Whitening Strips — Teeth whitening strips are popping up in every drug store across the nation. These whitening strips sold over the counter are fairly inexpensive, easy to use and most of them really work. Teeth whitening strips may take take longer to produce the desired results depending on the strength of peroxide that they contain. Good Housekeeping recently did an interesting study about which whitening strips work the best.
Teeth bleaching is a chemical process that a dentist can use to lighten up the color of the teeth of his patient. The process can be administered right in the dentist’s clinic, at the patient’s home or a combination of clinic first-finish at home. Home teeth bleaching procedures are more common nowadays these afford patients the convenience of their own homes.
Dental Supervision Gel Treatment
One of the most popular methods of teeth whitening, dental supervision gel treatments gives you a little break in the cost department but you still get the guidance of a professional. You will get a tooth tray that is custom-made for you which helps to get every area of your teeth as white as possible.
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Teeth whitening is the most commonly requested cosmetic dentistry procedure. Teeth whitening falls into the cosmetic dentistry category because it is designed to enhance your appearance by reducing tooth discoloration and staining to elicit a brighter, whiter smile.
Many people are satisfied with the sparkle they get from brushing twice daily with a fluoride-containing toothpaste, cleaning between their teeth once a day and the regular cleanings at your dentist’s office. If you decide you would like to go beyond this to make your smile look brighter, you should investigate all of your options.
As white teeth are subconsciously associated with youth, they have become desirable. This has been made more apparent with the spread of American culture worldwide,[citation needed] where an especially white smile is coined a “Hollywood smile”. The procedure to bleach teeth uses oxidising agents such as hydrogen peroxide or carbamide peroxide to lighten the shade of the tooth. The oxidising agent penetrates the porosities in the rod-like crystal structure of enamel and oxidises interprismatic stain deposits; over a period of time, the dentine layer, lying underneath the enamel, is also bleached. Tooth bleaching will generally last from 5 to 7 years, with variations from factors such as cigarette smoking, and tea and coffee consumption.
But first, what causes tooth discoloration? Remember that aging, chemical damage and staining are factors that contribute to discoloration as are medications, tea, coffee, cola soft drinks and cigarette.
There are also other factors that affect the color of teeth like genetics and disease. Some people have naturally whiter teeth enamel and their children can acquire this gene trait. But if you suspect that there’s a physiological factor behind the color of your teeth, it is best to consult your physician too so you can better inform your dentist
Teeth whitening corrects the discoloration in your teeth by removing the staining on your teeth. And there are a number of methods or techniques that can be used to achieve this such as the following: mild acid whitening, chemical whitening, abrasive teeth whitening and the latest one: laser teeth whitening.
Teeth Whitening Strips — Teeth whitening strips are popping up in every drug store across the nation. These whitening strips sold over the counter are fairly inexpensive, easy to use and most of them really work. Teeth whitening strips may take take longer to produce the desired results depending on the strength of peroxide that they contain. Good Housekeeping recently did an interesting study about which whitening strips work the best.
Teeth bleaching is a chemical process that a dentist can use to lighten up the color of the teeth of his patient. The process can be administered right in the dentist’s clinic, at the patient’s home or a combination of clinic first-finish at home. Home teeth bleaching procedures are more common nowadays these afford patients the convenience of their own homes.
Dental Supervision Gel Treatment
One of the most popular methods of teeth whitening, dental supervision gel treatments gives you a little break in the cost department but you still get the guidance of a professional. You will get a tooth tray that is custom-made for you which helps to get every area of your teeth as white as possible.
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