Category: Loan Consolidation Lenders

Platform that can reduce borrowing costs

Many small business owners are seeking debt consolidation and small business loan refinancing options, mistakenly believing that consolidation can save them money and fees. This highlights a troubling trend of many small business owners blindly entering into loan agreements with fixed interest payments and poor terms.

As a lender, QuarterSpot cautions all business owners to first research their current contract to understand the financial implications of a business loan refinancing. For those seeking a refinance of a fixed interest loan, QuarterSpot recommends that they continue to pay on their current debts for the duration of the term, and seek out a separate loan if they are in need of additional capital.

QuarterSpot provides business owners with a better source of funds through an automated underwriting platform that can reduce borrowing costs by as much as 85% when compared to traditional lenders. Further, QuarterSpot does not require small business owners to provide personal loan guarantees. Borrowers can apply for a loan in five minutes or less and receive funding in as little as 24 hours. QuarterSpot is committed to helping small business owners secure responsible small business loans that are clearly explained and fairly priced.

Consolidation deal is sometimes a marketing trick

There may be an upfront fee to pay or an administrative or arrangement fees for processing the refinancing. Some banks also charge early repayment fees, while others do not; so shop around for the best deal. Remember, that a debt consolidation deal is sometimes a marketing trick to attract extra attention for a standard personal loan.

And, there are other pitfalls to consider. You need to ensure the deal you are getting on your new financing is really better than the situation you were in before. Yes, you might have lower, more manageable repayments but your new loan consolidation provider may extend the term you repay that debt over a longer period. So while it gives you more money in the short term, you will pay much more in interest payments.

Also, check the rate. You need to ask the financial provider if it is a flat or reducing rate because there is a difference and personal loans can be advertised in both. While flat rates are usually lower; they might not be the most cost-effective option, whereas a reducing rate is calculated on the outstanding balance so compare like for like.

Accelerate your payments as your income grows

The main and primary financial benefit of loan consolidation is simplified your payments. Rather than five, ten, or more payments every month, you have only one or two payments to make. Your options depend on many factors, including: whether your loans are federal or private (and you may have both), how much you earn, what assets you have, and whether you’re being contacted for collections.

In many cases, debt consolidation stretches the term of the loan, so you may actually pay more in interest over the life of the loan. If possible, try to accelerate your payments as your income grows to avoid paying additional interest. However, any discounts you receive for consolidating student loans will reduce the total interest you pay over the life of the loan.

Finally, student loan consolidation makes it easier to keep track of total annual interest paid. That figure is important if you are eligible for the student loan interest tax deduction. Although the deduction will not save you a lot of money, every little bit helps. It is hard to give any specific, helpful advice, without knowing more details about situation. A first step is trying to speak to creditors or debt loan consolidation lenders, in order to work out some kind of payment plan.

The best way to reduce debt is through settlement

Before you start working on a loan consolidation solution, you need to get everything organized. It is not possible to settle an account for a lower sum if you do not know the exact amount of money you owe or if you do not have the data available to show that you are not able to make the payments. Getting organized means that you get as much information as possible together related to your financial situation and the amount of money you owe.

Personal or consolidation loan charge as much as 20 to 30 percent. On top of the interest, the loan will require paying closing costs and other fees, which can add unexpected expenses. Bankruptcy is another potential option, but it is best reserved as a last resort if a settlement is not an option. The reason you should avoid bankruptcy is that it will remain on your credit report for ten years. This can impact your ability to get a new job, take out a mortgage or reach other financial goals.

The best way to reduce your debt if you owe a large sum of money to a creditor is through settlement. Since settlement will result in forgiving the remaining amount of debt, you can begin taking immediate action to rebuild your credit history. Settlement has a temporary impact on your credit score. It does not have the same negative association as a bankruptcy, so it is possible to begin rebuilding the credit score and history immediately after the lump sum is paid and the creditor forgives your account. Getting a creditor and loan consolidation to reduce your debt if you owe a large sum is primarily about negotiation and settling the account.

Paying regularly bills will increase your credit score

Credit loan consolidation for bad credit score of 580 or below are usually a type of unsecured debt that targets men and women who have faced past struggles with their financial responsibilities. While the lenders might advertise loans for those who have a low credit score, the actual loans are not what many homeowners or renters expect when they are looking for a solution.

While the particular interest charges will depend on your situation and the exact credit score you have, a high rate is particularly common if your score is less than perfect. For example, you might receive an offer of a debt consolidation loan that has interest charges as high as 20 to 30 percent. Obviously, an interest rate of 20 to 30 percent is not likely to bring down your minimum payments on other debts and thus is not suitable for any particular need you might have.

Debt settlement will have a temporary decrease in your credit score, but it is possible to start working on improving the rating immediately after settling the accounts. Paying off the debts will free up more money each month so that you can keep up with your mortgage and other expenses. By paying regularly on your other bills, the credit score will increase over time. A bad credit score will limit your loan consolidation opportunities, particularly if you want the funds to consolidate high interest debts. Fortunately, you do have other debt relief solutions that do not require a great credit rating to make use of the program.