A reliable Arizona debt consolidation company consolidates and manages your loans burden for you. You have to apply for consolidation to the company which then offers you various ways and means through which you can consolidate loans. If you have a limited income you should desist from taking loans for your personal needs. The reason is that you will always keep on postponing repayment as other important expenses will keep coming in the way and the unpaid bills will keep on accumulating interest and become so large that you will never be able to repay it. This is called a debt trap or a hole; a situation from which there is no recovery.
Take A Program Which Suits Your Needs
Taking a debt help or management program from a reliable debt consolidation company is the only way through which you can come out of a financial crisis. If you want to live a healthy financial life then it is imperative that you should first get rid of your pressure. You will find there are many companies in Arizona offering you various consolidation programs. You have to be prudent to choose the one most appropriate to your financial condition. Choose a program for loans consolidation which gives you fast relief with minimum hassles. One such solution is a debt consolidation loan. Under this program you take a loan from your consolidating company to the tune of your loans, which you have to repay on easier terms over a longer period of time. It is important to see that your overall payment should be lesser than what you are paying at present. Your monthly repayment must become lesser and the tenure of repayment should also be less, only then should you accept the program.
A reliable debt consolidation company is one which does not charge you anything till the time you start receiving your services after you have selected your consolidation program. Do not pay any fees or service charges initially for quotation or selection of a relief program to your consolidating company. In order to make sure that you have chosen the right company you can take the help of debt counseling which is provided by a counselor.
Your debt counselor will help you in choosing the right company and will remain by your side all the way till you are free from pressure. Your counselor will also negotiate with your present creditors to bring down the interest rate being charged presently and will also try to eliminate certain late payment charges and service charges levied by your creditors so that the principal amount can be reduced as well. Therefore, if you do not feel confident of approaching a reliable debt consolidation company on your own then appoints a counselor to guide you out of your burden and become debt free in a few years’ time.
Going to College costs a great deal of money. No only do you have to consider your tuition, you need to pay for textbooks, room and board. Students use student loans to pay for a number of their college needs. Majority of these students have multiple student loans. Each loan has a different billing cycle, creditor, and interest rate. One way to make paying these loans easier is loan consolidation. Loan consolidation is having all your student loans turn into one new loan. This one loan is handled by one creditor. There are two methods of loan consolidation: Federal and Private loan consolidation. When looking for a loan consolidation company that's right for you, you need to consider their interest rates. Interest rates are a major part of any loan.
Federal loan consolidation is funded by the U.S. Government or the U.S. Department of Education. Either the Government or the Department of Education combines your multiple student loans into one new loan. The interest rate on Federal Loans change according to the 91-day Treasury bill or T-Bill. This may vary each year, each May. Federal Loan Consolidation rates are set on the US Treasury and by the Congress. The Federal interest rate is the weighted average of student loan interest rates. The interest rate for Stafford loans will be the T-Bill plus 1.7%, while for federal PLUS loans, the rate is the T-Bill plus 2.3%.
Federal loans are currently at a fixed rate, but that can change. Originally, the federal interest rate was a fixed rate, later turned into a variable, but on July 1, 2006 it returned back to a fixed rate. With federal loans there is a possibility it may change in the future. Federal loans include Stafford Loans and PLUS Loans.
Stafford Loans are fixed-rate loans. For Stafford Loans you have subsidized and unsubsidized Stafford Loans.
For Subsidized Stafford loans that are paid out to graduate and professional students, the interest rate is fixed at 6.8%. Interest rates for subsidized Stafford loans, for undergraduate students are:
- For loans first paid out between July 1, 2006 - June 30, 2008, is fixed at 6.8%.
- For loans first paid out between July 1, 2009 - June 30, 2010, is fixed at 5.6%.
- For loans first paid out between July 1, 2010 - June 30, 2011, is fixed at 4.5%.
- For loans first paid out between July 1, 2011 - June 30, 2012, is fixed at 3.4%.
- For loans first paid out between on or after July 1, 2012, the interest rate is fixed at 6.8%.
For Unsubsidized Stafford loans, the interest rate is fixed at 6.8%. This is disbursed to undergraduates and graduate students.
The interest rate for PLUS loans first paid out beginning July 1, 2006 is fixed at 8.5%. The rate on PLUS loans first paid on or after July 1, 1998 but before July 1, 2006 is variable and may change annually on July 1 but will never exceed 9%. The current interest rate is 3.28%.
A private loan consolidation company is a private creditor or company. Their interest rates vary. Interest rates are based on either LIBOR (London Interbank Offered Rate) or the prime rate. The credit history is also considered for the student and co-signer. These loans are variable or have a fixed rate that changes according to the agreement in the promissory note. In some cases some private student loan consolidation loans could be the same rate as federal to compete with federal low interest rates.