These days one cannot guarantee a job just because you are educated and have got a higher degree. Your qualification is not of concern at times with the job demand higher then the actual availability. Under these circumstances many of us end up unemployed. Being unemployed after a good education does not hold pride but it is not in our hands. But many students would have taken up loans to study and these loans need to be paid off. These loans may be from various lenders and with a high interest rate. The debts because of these loans end up on a higher note and still repayment is a question mark. To help students out of this mess and make their life a lot better, student unemployed debt consolidation has been devised. Under this debt consolidation plan, lenders offer loans to students to clear off all their loans so that they can be debt free. This loan is specially designed for the students and so only students can avail it. These loans are available at a comparatively lower rate of interest. You have the secured student unemployed debt consolidation and the unsecured student unemployed debt consolidation. For the secured loan you need to place a collateral in the form of your house, car etc while for the unsecured loan you don't need any collateral. The interest rate for the unsecured loan is slightly higher then that for the unsecured loan. Availing this loan does not need your physical presence. You just need a computer and internet connection. With advancement in technology, lenders have started asking for loan application online. You also get details of the loan online so you can complete your search without actually moving around and get the best.
Read More......Thursday, September 17, 2009
Most Loans Used for Consolidation
The majority of UK loans are used to consolidate debt, with new cars and home improvements completing the top three uses of unsecured lending, according to figures released by Sainsbury's financial arm.
Sainsbury's Bank head of loans Peter Baillie states that 40% of personal loans are used to consolidate debt from other sources, rolling it up into one manageable amount with a single monthly payment. During the months of March and September loans are primarily used for the purchase of new cars which accounts for 30% of the annual totals, and there is a steady all year round demand for loans for home improvements, running at 25% of loans granted throughout the year.
Baillie added that customers who took out consolidation loans should consider whether the loan will clear off their debt, and not merely defer the problem for some time in the future, adding that it was important for customers to shop around, compare loans and make sure they were getting the best deal.
The figures from Sainsbury's research are backed up by Moneysupermarket.com, who also discovered that over five millions Britons believe that they will never escape debt, while over 28 per cent of Brits - almost 12.7 million - have taken out a loan to consolidate some or all of their debt. But, almost 66% of those who had taken out a consolidation loan continued to build more debt through taking out more loans, building up credit card debts or extending their overdrafts, with 21% of those questioned managing to build up more debt using all three.
Tim Moss, head of loans at moneysupermarket.com believes that debt has become part of the British psyche. He said: "Debt has become the curse of modern times. People need to be careful that the ease of credit doesn't catch them out. It can soon spiral into a debt sentence." And commenting on how times have changed in less than two generations, he added: "Forty years ago, being in the red was a last resort. It seems that many of today's Brits are much more accustomed to taking on debt - although being able to control it is another thing."
According to creditaction.org.uk personal debt in the UK is growing by 1 million every four minutes. Moneysupermarket.com has discovered that 31% of those in debt feel they can't stop it spiralling out of control. With interest rates rising and the cost of credit increasing, unless people who take out consolidation loans can maintain the discipline to stop adding to their debt burden, rather than use it as a licence to start spending again, the number of Britons who feel they are trapped in debt will only increase.
Bad Credit Debt Consolidation: Tackle Your Debt Head On
Bad credit debt consolidation might seem like an uncomfortable term to many people. This is because, people are still uncomfortable with terms like bad credit and debt. But these are realities we have to face at some time or the other. By understanding what a debt consolidation loan is, you can better understand what debt and debt relief really mean.
Stigmas And Scandals
Most people do not like to admit that they are in debt. In todays money-conscious world, it is easy to see why debt is such an unsavory and scary word. Oftentimes, financial stress can seem like a hopeless situation, as debts keep piling up so quickly that you just cant keep up. Instead of focusing on the stigma and self-pitying part of debt, it is far more effective to think positively about what you can do about it.
The good news is that, there are a number of ways to beat debt and best debt consolidation for bad credit holders has proven to be especially effective. The bad news is that, there are many crooked lenders out there, looking to make a fast buck. If you are looking for some helpful debt consolidation advise, there are a few hints you should keep in mind.
The Consolidation Situation
Before looking for consolidation program for people with poor credit, you should know what this kind of debt relief means. Debt consolidation advice involves clubbing all of your debts into one payment. This is useful because, it can be hard to keep track of multiple payments that have to be paid at different times. The lender will then take care of your debt for you, while you pay this lump sum off in regular payments. You will have to pay a lenders fee and work out a payment plan that is comfortable and workable for you.
Its easy to see why a trustworthy lender is needed for a bad credit debt consolidation. After all, you dont want to hand over your hard-earned money to someone who wont cover your payments. Even before checking fee structures, check the Better Business Bureau. If a certain lender has complaints lodged against them, they are best avoided. Another important aspect many people forget about is credit counseling. This can help you get your finances in order, so you do not fall into debt again. A good lender will offer this service free of charge along with your poor credit debt consolidation.
Consolidation Loans Explained
If you are feeling bogged down in debt by having many small loans and such as credit cards, the consolidation loan can take a huge weight off your mind and help you to get back on top of things and heading towards paying off your debt. However if you don't know what you are getting yourself into then consolidating your debts can just help you to dig the hole deeper and leave you struggling even more.
If you consolidate your debts the right way then you could end up paying a much lower monthly repayment although this might be over a longer period of time, so you should take this into account when it comes to knowing how much you will be paying back in total.
One big problem with the consolidation loan and which approximately 80% of people who take out a loan to consolidate their debts fall into the trap off, is using the loan for other than debt consolidation and running up further debt. The other problem with them is that once the majority of money has been used to pay off your creditors then it is very tempting to quickly get back into debt by taking out another loan or running up your credit card bill again.
When choosing a consolidation loan the first thing you should look out for is the amount of interest that you will pay on the loan. This of course will vary from lender to lender and shopping online is the best way to get quotes from various lenders before deciding which deal is the best for you.
As with the majority of loans there are different types available, two of the most popular are the secured and unsecured consolidation loan. The secured loan means that you have to secure something, which is usually your home on the loan, while the unsecured allows you to borrow money without putting your home on the line.
The best loans will allow you to repay varying payments without penalty, for example if you take the loan for 10 years and find after say 4 years that you can afford to repay more off the loan and pay it up early then some lenders will add a cost onto the loan for doing so. Where possible look for a loan that allows you the freedom of paying more while not giving you a penalty should you pay it up early.
