Asset Loans, Debt Management and Debt Consolidation

It is definitely not uncommon in today’s economic environment to need some assistance with your finances at one time or another and the sooner that you can get back on top and manage your debts the better

You may need to consolidate your debts into one loan to help you manage your finances and see the light at the end of the financial tunnel.

Debt Consolidation – What Is It?

Debt can be a burden that you carry for a long time, and sometimes a lifetime. When you borrow money and then are finding it difficult to repay the allocated repayments to the creditors by the due date then you may need a debt consolidation loan to get you out of trouble.

You will be pleased to know that there are a number of ways that you can consolidate your debts. The general principle is to replace some, or all of your debt repayments, with one single repayment.

Why Should I Consolidate Debt?

A debt consolidation loan may be the answer for you if you’re having problems meeting your minimum repayments on all of your debts. But in saying this, there are some things that you should take into consideration before you apply.

You really want to look for a loan that is provided at a lower interest rate than you have been previously paying. A debt consolidation loan is usually taken out to cover the total of all outstanding debt and you would usually refinance all of the high-interest debts to leave you with just one single payment.

We seem to manage debt better when we only have one payment because that one debt is the focus and you can dedicate any surplus funds to that debt to help reduce it as quickly as possible. This is where debt consolidation and one repayment amount can be advantageous.

What do I need to consider before consolidating debt?

There are some strategies that you can adopt that can help reduce your debt before you decide to pursue a debt consolidation loan. Some of these include:

• Establish a budget and manage where income is being directed.

• Set a budget and live within your means.

• Establish a savings plan and stick to it.

• Ask for a Lower Interest Rate product from your financial institution or shop around at other institutions to see what is available.

• Look for deals on credit cards as some credit card providers offer no interest or low interest for a certain period of time on the balance being transferred when transferring from another financial institution.

• Learn how to manage debt more effectively so as not to get further into debt.

• Don’t take on any further debt until you have your current debt under control.

If, after considering all of your options, you decide that a debt consolidation loan is for you, then there are a few options available.

Types of Debt Consolidation

• Low rate credit cards

• Unsecured personal loan

• Secured loan

• Home Equity Loans

• Debt Agreement

The main benefit of consolidation of debt is having a lower manageable payment over a longer payment term. You should be careful when choosing a loan to be sure that you are making a wise financial decision as this is an investment in your financial future.

Asset Based Lending As An Option For Businesses?

If you are a business with cashflow problems, and are in need of cash to finance business growth, pay taxes, etc then you may like to consider an asset loan or asset based lending as your cashflow solution.

Asset Loan Co Executive Diretor, Russell Percival said that “In the business market today, many businesses face obstacles and challenges that are unique. They often find that their own success is causing cashflow obstacles, and they then become a victim of their own success. Unfortunately, once they achieve optimum market penetration, and orders are self generating, they discover an even greater demand for capital and cashflow, and this is where substantial financial pressure gets placed on the business.”

You can make your assets work for you rather than finding yourself caught up in a cashflow hole. By using the existing assets of your business to provide working cashflow, businesses are now able to better finance their business operations and this can provide the freedom to grow over and above the constraints of their existing working capital. A lack of working capital can restrict the growth of businesses. If businesses are in need of an asset loan then the leader in the marketplace, Asset Loan Co can assist.

Russell Percival
http://www.articlesbase.com/finance-articles/asset-loans-debt-management-and-debt-consolidation-83472.html

Post Author: mark

7 thoughts on “Asset Loans, Debt Management and Debt Consolidation

    B

    (February 11, 2010 - 3:40 pm)

    Should I file for bankruptcy?
    I have 13000 in credit card debt 5000 remaining on a car loan and no other bills. I am recently divorced and I got all the credit cards. I have no assets (rent my house) so I’m not sure I could have anything taken away besides my car. I have tried getting a consolidation loan but that is out of the question and I am currently enrolled in debt management, but I am still sinking. Is bankruptcy my answer??

    mattapan26

    (February 11, 2010 - 8:42 pm)

    Depends on your income. If you have too high of an income, you might not get a discharge. You usually can get a free consult with a bankruptcy attorney.
    References :

    bb

    (February 11, 2010 - 8:44 pm)

    well i think that is a little to much info!!!!!!!!!1
    References :

    Roger S

    (February 11, 2010 - 8:46 pm)

    To mess up your credit for 10 years for only 13,000 is a waste.

    What about a part time job?

    You will lose the car, so how will you get to work?

    Call the credit card companies and see if you can work out a better rate. What does debt management say? Aren’t they helping?

    Based on what you have said, no bankruptcy isn’t the answer.

    STOP USING THE CREDIT CARDS. PERIOD. Pay cash for what you need. DO NO USE THE CARDS ANYMORE
    References :

    john r

    (February 11, 2010 - 8:48 pm)

    Yeah you might be a candidate for bankkruptcy….a lot will depend on your income. Also, if any of the credit cards were joint debts, they will go after her if you file bankruptcy, regardless of what the divorce says. This might get you in trouble in divorce court.
    References :

    OwningDogs .com

    (February 11, 2010 - 8:50 pm)

    How much money do you make? Unless you make less than $15K per year you are not bankrupt, just in debt like 70% of Americans.

    Get yourself on a written spending plan (aka a budget) – list your paycheck at the top and decide how much you are spending on each necessity – first is food, then utilities, then rent, then car, then clothing, then prioritize your other bills. MasterCard/VISA get paid last. Get current on all obligations and then get $1000 in a savings account.

    List your debts from smallest balance to largest – pay the minimum payment on all but the smallest until you knock that one out. Then take what you were paying on that smallest debt and add it to the minimum payment on the second smallest debt until that is gone.

    While you are going through this process – no retirement contributions at all – you need to get this debt paid iff!

    DONT do a debt consolidation or a debt couseling center – you need to take responsibility for this problem, face it, and get rid of it. You should be able to kill this in 18-24 months; but until you are done – no eating out, no vacations. Maybe you take a second job for a year so you can take care of this mess.

    This site will give you free forms and some additional tips on how to avoid bankruptcy http:www.daveramsey.com so you too can live like no one else.

    My husband and I have been doing this and we have paid off $32K in 7 months – we are currently living off of 40% of our income – with the rest going to debt.
    References :

    tim t

    (February 11, 2010 - 8:52 pm)

    Chapter 7 bankruptcy is the commonest denotation of bankruptcy. It stands for waiving or canceling of debts that you have incurred. As an individual, you can select between Chapter 13 or Chapter 7 bankruptcy. Selecting between the two is not easy. The bankruptcy court will study your circumstances before deciding which type of bankruptcy is applicable to you.

    The Chapter 7 bankruptcy is applicable if you have no regular sources of income. It works by reducing or clearing off all your debts. You can then make a fresh start without having to worry about having to pay your debts.
    http://get-out-of-the-debt-trap.com/category/Information-on-Chapter-7-Bankrupt.html
    References :

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