Debt Consolidation Loan Warnings
There are a lot of lenders who work with individuals with no so perfect credit. I don’t generally recommend debt consolidation loans because they are so often improperly used. But for some, they are a good way out of a tight bind. Many debt consolidation lenders have rules that are less stringent than a bank.
You should not expect to fill out the short form. Along with being completely candid about all of your finances, assets and income - you will probably also have to provide a complete and extensive balance sheet itemizing all of your income and expenses.
Just like a mortgage, the one piece of advice that I can give you is that the loan guy doesnt care. He doesn’t care whether you stop paying six months from now or not. He doesn’t care whether the interest rate or payment will increase to more than you can handle. He doesn’t care about the impact that the loan will have on your life. You see, he gets his commission when the loan closes, and thats the last time he will have to think about you.
So, what is the advice. KNOW THE TERMS, KNOW THE TERMS, KNOW THE TERMS. Read the fine print. Don’t rely on the explanation of the guy at the bank, the friendly smiling putz on the other side of the table. He may genuinly be a nice guy. But ultimately you’re the one who will be in touble if the terms change and you can no longer meet your obligation.
Make sure that you know whether the loan is a fixed rate or adjustable. What is the interest rate and payment for the entire term of the loan? If it is adjustable, when will it adjust? Is the payment just a teaser, and if so, when will it go up? - and by how much? How long is the loan? Will you pay any points? Is there a balloon payment?
It’s great get some relief from credit card debt. But make sure your not making a bigger problem for yourself.
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"Click Above to find out how you can be debt free including your mortgage in just a fraction of the time using only the income you currently make!"
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