San Diego, CA (PRWEB) August 05, 2013
LoanLove.com is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. A recently posted article on the website helps to further help loan borrowers by explaining the basics of credit card debt consolidation.
The article says: “If you’re carrying a lot of debt, that probably means you’re also carrying a lot of stress: Maybe you’ve amassed so much debt that each month, you find yourself performing a juggling act just to try to cover all the amounts due, and a simple trip to the mailbox pushes your nerves to the limit. Or maybe you’re still able to handle your debt but you realize that it’s having a significant impact on your debt-to-income ratio and your ability to get a mortgage or qualify for other loans or credit. In any case, taking a debt consolidation loan to pay off those debts can be a great option.”
Debt consolidation companies use the loan proceeds to pay off the borrower’s existing debts, allowing them to pay one loan at a specific interest rate each month instead of trying to meet multiple obligations all month long. Often, consolidation loans offer better rates than many other types of consumer debts, meaning borrower’s can possibly save money. One way borrowers can ensure that taking on a loan debt consolidation loan is good deal is to use a debt consolidation loan calculator. These calculators can help determine many factors for many financial situations, such as how long will it take to get out of debt, or how much interest can be saved if with a fixed interest rate.
However, as wonderful as these loans may sound, the Loan Love article does caution borrowers who use them. The article says: “The primary disadvantage of debt consolidation loans is that many consumers end up using the loans to pay off their cards and then – lured by the sultry siren song of a $0 balance – they promptly begin to rack up debt on the cards, eventually winding up with even more debt – and much worse credit – than they had when they applied for their loan. Obviously, the key here is to have the willpower NOT to use your cards once they’re paid off. If you can’t trust yourself not to use your paid-off cards to amass more debt, these loans may not be a good option. However, if you feel confident you can successfully avoid temptation, debt consolidation is certainly worth a look.”
For more information on bad credit loans, and advice on what to look for when choosing a debt consolidation loan company, please visit Loan Love by clicking here in order to read the full credit card debt consolidation loan guide.