A1 Financial Management Services

When unemployed people accrue debts, it becomes particularly difficult for them to get any help in debt consolidation from standard loans. For standard loans, the case of unemployed people is far too perilous to be advanced any amount.

Debt consolidation loans for the unemployed are similar to the regular personal loans; only that a few alterations are made to suit the unemployed people. Are the unemployed people complaining? No, since they would not have been able to get a regular loan from any of the high street banks. Certain loan providers may have used this as an opportunity to trick borrowers into paying a high rate of interest.

Is the borrower insulated from such trickery when using debt consolidation loans for unemployed? Yes! A borrower can easily get information on prevailing rate of interest from loan experts. The loan experts will also educate borrowers about what to expect and what not to expect on debt consolidation loan for unemployed. Therefore, borrowers planning to take the loan can differentiate between a competitive deal and a not so competitive deal.

Borrowers must expect a high rate of interest on debt consolidation loans for unemployed. Two sets of bad credit remark are present on the credit file of unemployed. Firstly, the borrower is unemployed. Secondly, the borrower has accrued a large number of debts, which may transform into defaults, bankruptcy etc. The risk involved in dealing with the unemployed people is thus larger. This is the main reason for an increase in rate of interest in debt consolidation loans for unemployed.

Before you agree to take debt consolidation at the stated rate, it will be essential that adequate comparisons have been made. You may be unnecessarily filling the coffers of the loan provider by paying a higher rate of interest.

Use of collateral can help bring down the rate of interest by few points. Collateral is any asset on which borrower gives loan provider a right. For instance, if debt consolidation loan for unemployed has been taken against ones home, home is the collateral. Loan provider enjoys right or lien on house. He has the powers to demand liquidation of house to recover loan proceeds. This is in the event of non-repayment of loan. Until then borrower is free to stay in the house and of course pay taxes and other dues on house as earlier.

Another expected feature of debt consolidation loans for unemployed is the relatively low amount that is offered. Had it been for a regular loan, borrower would have obtained a much better amount. However, since the risk involved in lending to the unemployed people is larger, loan providers are not very generous in lending. Proper search can however help one find loans up to ones desired amount.

The proceeds of the debt consolidation loan for unemployed goes towards settlement of debts. As in debt consolidation loans from high street banks, debt consolidation help may not come free. However, if borrower feels that he lacks the necessary expertise to settle debts successfully, then they can contact IFAs. Independent financial advisors offer professional and independent advice. Their advice will go a long way in clearing the debt load from the borrower’s shoulders.

Repayment of the debt consolidation loan for unemployed will depend on several factors. When debt consolidation loan for unemployed is secured on ones home, borrower has the chances of gaining term of repayment for as long as 25 years. The minimum term for which the debt consolidation loan is available is 5 years. Depending upon ones requirement, borrowers can either stretch the term or constrict it down.

You can often detect warning signals of over indebtedness long before collections notices. If more than 2 or 3 danger signs apply, get help from us by beginning the debt settlement process.

• You have begun charging to a credit card essentials like food, and daily expenses
• You make only minimum payments on your charge accounts each month
• You take cash advances from your credit cards for incidental expenses
• You are at the limit of your credit cards, or have too many cards.
• You are unsure how much you owe creditors

• Are you feeling the effects of your debts more and more every day?
• Are you paying high interest rates?
• Are you making minimum monthly payments?
• Are you STILL seeing high balance that NEVER comes down?
• Are you getting calls from creditors?
• Do you want to reduce your monthly payment up to 50 PERCENT?
• Are you afraid to answer the telephone?
• Are you worried there is NEVER enough money to go around?
• Do you have over $2000 in unsecured debts?
• Do you Sincerely want to get out of debt?

If you answer YES to most of these questions, it’s time to regain control of your finances. Don’t let problems from your past affect your ability to secure credit in the future.

Our exclusive “Debt Management” program will not only give you back control, it will save you time and money. So Don’t wait, take the first steps, to regain control.

Many Consumer Credit Counseling Companies tout their non-profit status. Many consumers confuse “non-profit” with “no charge for services”, or charity. Non-profit Consumer Credit Counseling Companies may still make substantial amounts of money. The way Credit Counseling works is that you typically meet with a Credit Counselor who analyzes your unsecured debts, other obligations, and your monthly income. A credit counselor then formulates a monthly budget and presents a plan that includes lowering of some credit card interest rates and sometimes, the monthly payment typically around 11% interest. The Credit Counseling Company then contacts all your unsecured debt Creditors and requests that the consumer be permitted to repay the debt at a lower interest rate. During the program a single monthly payment is sent to the Credit Counseling company and they in turn make payments directly to all your creditors for the next 48 - 72 months. Read the rest of this entry »

Debt settlement and debt consolidation are two great ways of reducing your debt but each have their own benefits and detriments which you should consider before deciding which option to persue. Debt settlement eliminates part of your debts, while debt consolidation reduces the interest rates of your debts. While debt consolidation may have the least amount of impact on your credit score, there are cases when debt settlement is a better choice. Read the rest of this entry »

Did you know…

• Over 70% of all marriages that end in divorce are due to financial problems.
• 75% of all Americans are only three paychecks away from bankruptcy.
• 105 million Americans will file bankruptcy due to unsecured debt.
• 1.5 million will participate in consumer credit counseling.
• 37 million will TRY TO NEGOTIATE WITH CREDITORS THEMSELVES - which the creditors love, because people with debt troubles are not professioanls and don’t know how the system really works.
• On average, when you purchase something with a credit card, you pay 132% MORE than if you used cash.
• Typical minimum monthly payment for a credit card are divided into 90% interest and only 10% to principal reductions.  The principal amount on your credit card is what the product or service you bought cost you.
• Over 71% of all credit card accounts have only the minimum monthly payments being made by consumers. 

Don’t be a statistic!  Begin your path to a debt free future now.