The world of finance and money is a very funny one. If you have lots of money, you will find it easy to borrow even more. On the other hand, if you do...
The world of finance and money is a very funny one. If you have lots of money, you will find it easy to borrow even more. On the other hand, if you do not have lots of money and if you need money owned by others, you will have to pay very high interest rate. Why would you borrow money if you had lots of money on your own? Should it not be the other way around? You must remember that lenders operate for their profits.
If your need for money is very high, they will charge very high profits. That is the reason why long term mortgage loans charge low interest while short term period loans come at the highest interest rate possible. Credit cards fall somewhere in between as they do not have a specific date on which the amount must be repaid. This is one feature that makes a credit card different as compared to all other unsecured loans.
This is what makes credit card debt very dangerous as well. If you get a payday loan, you will have no choice but to repay it in full by the due date. You will borrow money from your friends and relatives, save on expenses, utilize your savings and even sell a jewel to repay the debt. Once the debt is repaid, you can manage your finances on your own. However, credit cards give you the flexibility of postponing the debt repayment to another month and another month and another month. This process continues and the end result is that the individual ends up paying a lot of money in the form of interest.
All it takes is for one emergency to take place and the entire structure comes crashing down. The individual just has to opt for bankruptcy because no other relief option is available. If you believe that your high credit score will be sufficient to get a consolidation loan, then you should make sure the debt never goes into collection.
The moment collection agents enter the picture, your credit score will take a hit. This will make it difficult for you to get loan to repay the debt. For many persons, this signaled the beginning of the end. However, debt settlement has made a huge difference. Today, you can get a 50% to 70% waiver on the amount owed even if you are one day away from bankruptcy. Once the waiver has been obtained, you just have to repay the balance amount in installments.
If you are over $10k in unsecured debt it would be financially prudent for you to consider a debt settlement. There are organizations that exist called "Free Debt Relief Networks" that are a great place to start in locating legitimate debt settlement companies in your region. They provide free debt help and know where to locate the top performing debt settlement firms. To get free debt help check out the link below:
Free Debt Advice(http://www.freedebtsettlementadvice.com)Debt Settlement Programs - Tips To Exploit The Economy To Reduce Debt
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