Bad Credit Debt Consolidation - Do You Really Need It?
A lot has been said about why one should think of a bad credit debt consolidation loan.
However, there can be some loopholes.
Is this bad debt loan really as helpful as one is made to believe? Here some points you need to ponder on before you commit yourself:The Interest Rates - Pay special attention to the interest rates or the EMI that you'll have to pay after you take this bad credit debt consolidation loan.
It could be higher than you can actually afford! The Grace Period - Enquire whether you'll have any relaxation time after you have cleared your debts using the bad credit debt consolidation loan.
This will give you some time to save and gain control over your finances.
The Installments- Keep an eye out for the installment payments.
Are they monthly, quarterly or do you have to repay the entire amount with the interest in one go after the relaxation period? The Early Payment Conditions- Will they fine you for repaying the bad debt loan before time? There can always be a situation, where you have more money now than you will have tomorrow and you would like to get the loan off your head sooner! Non-Payment Charges - However, there can be a situation where you are unable to pay one installment due to a financial emergency.
Enquire about non-payment charges- some companies may charge exorbitantly in such cases.
The Loan Tenure- Remember the longer you drag your bad credit debt consolidation loan, the more you'll be paying to the debt consolidation company that felt was the best debt consolidation company for you just some months ago.
Do not take a bad credit debt consolidation loan that runs longer than your productive years.
You need to save for your retirement too! Think 5 years In Advance- You are single now, or a young and energetic couple without any liabilities? Well, keep in mind the increased expenses if the situation changes tomorrow.
Your Property- Do you really have to mortgage your house or jewelry for this bad debt loan? If yes, make sure all your papers and those given by the company are free of loopholes.
You don't want to lose your valued possessions because you missed out on some point! Online Debt Consolidation- You have opted for an online debt consolidation loan.
Clarify whether the payments need to be done online or you have to deposit a draft or cash personally at regular intervals.
Enquire about their stand on the issue of post dated checks too.
Take care to select the debt consolidation program with caution.
Remember, the best debt consolidation program today may not be the right one for you after a few years!
However, there can be some loopholes.
Is this bad debt loan really as helpful as one is made to believe? Here some points you need to ponder on before you commit yourself:
It could be higher than you can actually afford!
This will give you some time to save and gain control over your finances.
Are they monthly, quarterly or do you have to repay the entire amount with the interest in one go after the relaxation period?
Enquire about non-payment charges- some companies may charge exorbitantly in such cases.
Do not take a bad credit debt consolidation loan that runs longer than your productive years.
You need to save for your retirement too!
You don't want to lose your valued possessions because you missed out on some point!
Clarify whether the payments need to be done online or you have to deposit a draft or cash personally at regular intervals.
Enquire about their stand on the issue of post dated checks too.
Take care to select the debt consolidation program with caution.
Remember, the best debt consolidation program today may not be the right one for you after a few years!
