A quick check of the headlines will show that the economy, despite what the media states, is really not improving. Unemployment continues to rise and more people face lay offs and pink slips every day. True unemployment figures, the ones that include everyone out of work not just those receiving benefits, have almost reached the 25% mark. One fourth of the country is unemployed and this is really bad.

With high unemployment you will also have high amounts of defaults on credit and mortgages. This will force interest rates and fees up, resulting in a higher debt load for you to carry, even if you have not added anything to your current balance.

The time to get out of debt is now. You need to use all that money you are paying your creditors to save and invest into your future. There will not be a government retirement plan in the near future. If you do not take care of your future, you will not have one.

While it is true that people need to have some form of credit to survive in the modern world, if you have extensive credit it is bad. The inability to repay that credit can damage you for life. The lack of retirement planning will ruin your golden years.

Credit card debt and other types of unsecured loans carry very high interest. The repayment plans are structured to take as much time as possible to repay so that the creditors can make sufficient interest. The payment plans are not designed to benefit you, only the company issuing the credit. You must reign in your spending and get rid of the debts or face consequences you may not like.

[ReviewAZON asin="0553382020" display="inlinepost"]As many people struggle to make ends meet it only makes sense to get rid of the one thing that holds them back: credit. Time to save for the purchases you need instead of buying them on the fly. It is time to pay off those high interest debts and invest the money. It is time to conquer your finances to ensure that you will have a future. And the time is now.

If you are unsure how to effectively get out of debt, seek help. There are many credit counseling programs that can help you make the best plans for your future, with something like a debt consolidation. A financial adviser or credit counselor can present many options to you that you may not even have been aware were available, like special debt consolidation loans.

It is up to you to take that first step. You will be glad you did.

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Always Do Your Research on the Company before Signing Up for a Free Quote

Check the web for any complaints or bad reviews on a company before you even consider calling them for a free debt consolidation quote. You can also check the Better Business Bureau for any complaints against them as well as complaints that have gone unsettled, which are even worse.You also want to ask the company for any testimonials they can give you as well as their company history. A company that has been around for over five years and doesn’t have many negative reviews is much more trustworthy than a company that was just started this year and already has a few negative reviews. Not all new companies are scams but you should exercise caution with them. If you just don’t have a good feeling about a company, then don’t use them. It is not worth the stress as well as your money to possibly get scammed by a company.

Always Read All the Paperwork before Signing

Where some debt consolidation companies get you is that they will offer you a free quote, but then make you sign a contract stating that you will not use any other service like theirs for up to a year or that you sign up for one of their programs even if you just want the free quote. You need to make sure that you read every paper that you sign even just for a free debt consolidation quote. There are companies that specifically use free quotes to scam people into having to work with them.

Also, some companies may say they offer a free quote but then you still get charged a service fee or some other strange fee. Read the papers as well as ask questions to the representative to ensure it is entirely free.

Don’t Allow a Company to Pressure You into a Decision

After you receive your free debit consolidation quote, never let a company pressure you into making your decision right away. If they are offering you the best services and plan, then it will still be the best in a few days. Always take time to look over the quote and take everything in that was laid out in it.

Some companies use the scarcity tactic and say that you have sign today or else they can’t give you the service for that amount or if you wait they may not have room in their firm to take you on. If this is the case you may be better off just walking away.

Getting free debt consolidation quotes can be a great way to save some money when you are looking for professional help in managing your debt. Unfortunately, there are companies out there that are looking to scam a customer, which is why it is so important that you do your research, read all the papers, and really think over your decision before signing a contract.

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Do you wake up in the middle of the night thinking how you’re going to make your salary enough to pay for all your bills and for your upcoming expenses in the following month? And the reason behind is that most of your salary will be used to pay for your debts?

Well, here’s some news. You’re not alone. Most people who have been in that situation were able to get out of their misery, learned their lesson and then had a fruitful life. Some others continue their situation till old age and ended up being miserable all their lives.

So, how do we get out of debts? How do we run from this nightmare?  Here are few things that you can do to really get out of debts.

1.    Acceptance.  Accept that you have a problem and you really need to do something about it. Being certain that there is a problem paves the way for looking for solutions.  Most people will continue to fool themselves that’s everything is okay so they never get out of debts for the rest of their lives.

2.    Tell yourself you’re going to be free from all those financial problems. It all starts with being determined to do everything in your power.  In that way, you’ll start charting steps on how to get out of your debts. As long as you are determined, nothing will stop you. It’s always easy, but it’s always possible.

3.    Be more responsible with your earnings. One best suggestion will be to list your daily expenses. Do it every day. This will make you realize what’s eating you’re budget, whether they are essential or not.  Save as much as possible. Cut on Sunday night outs. Postpone the designer jeans acquisition.  Make 40% of your total earnings be allotted to payments.  I assure you, once that is over; it’s as if a huge weight was taken from your shoulders.  And finally, you’ll gain financial freedom.

4.    Be disciplined. Actually, the steps provided on how one get out of debts usually boils down to a very important factor—discipline. This is actually quite difficult to tackle since the fact that you are having some financial problems and you are wondering on how to get out of debts means that in one way or another, you have been undisciplined or irresponsible with your finances.  So, build on this. Give your best to be a better spender.

[ReviewAZON asin="B002E19I9M" display="inlinepost"]How to get out of debt isn’t a complicated or tricky business.

The solution is actually is very simple—discipline. And it’s worth it. You are insuring not just your present but also your future.  If you are have or planning to have kids, will you let them live a miserable life and let them inherit your financial baggage or you might be wishing a better life for them.

That decision is for you to make.

Military Debt Consolidation Advice is a guide to the benefits (and pitfalls) of debt consolidation, with a special focus on the services out there for military members.

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Are you struggling just to pay your bills and have the everyday necessities of life?  If so, you may be considering either filing for bankruptcy or debt consolidation.  How do you decide which path is the best option for you to follow?

Here’s a look at how the two differ.  Once you have read the information, you will be better equipped to decide if you should contact either a debt consolidation service or someone familiar with Minnesota bankruptcy law.

The Pros and Cons of Debt Consolidation

When you hire a debt consolidation service, you hire a negotiator.  The service will negotiate with your creditors, striving to achieve a lower interest rate, lower monthly payment or a smaller payoff.  You should stop being harassed by your creditors because they will now be dealing directly with your debt consolidation company.

Each month you will right only one check – to the debt consolidation service.

They will then make your payments for you.

This could be helpful when it comes to dealing with your unsecured debts, such as credit cards, etc. If, however, you have secured loans, such as a mortgage or car payment, you will need to deal with them yourself.

You will have to pay a monthly administrative charge to your debt consolidation company and, remember, debt consolidation is completely voluntary on all parts.  The creditors can change their minds at any time and go ahead and pursue other collection options.  Bear in mind, too, that even though you may eventually pay the bill off, your struggle will still be reflected in your credit report.

The Pros and Cons of Bankruptcy

Bankruptcy is a big step.  It can reflect on your credit report for up to 10 years. Despite the negative effects of bankruptcy, however, it does have some definite advantages, particularly if you can file Chapter 7, where you may eliminate much or all of your debt.  Harassment, suits or garnishments from creditors will stop immediately and permanently.

You will no longer be burdened by the repayment of these debts.  Best of all, you get a new financial beginning.

Getting out of debt is important, but you need the method that is right for you.  Consult a lawyer familiar with Minnesota bankruptcy requirements to dispel any bankruptcy myths and to learn more about your options.

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The fastest way to eliminate debt central from your finances is to cut up any credit cards so they cannot be used and begin the process of paying off the balances. It is essential to make more than the minimum payment, which brings down the total balance due at a faster pace. If you have more than one credit card, pay off the one with the lowest balance first and continue until all balances are paid in full.Credit companies use the consumers charge habits to their benefit. They make money in finance charges while the consumer suffers when paying more for an item than what it costs if paid for in cash. The best process for anyone who wants to be out from under debt caused by charging purchases is to not use the cards for any purchase unless a true emergency exists. Generally, the safest way to keep a card for charging and not use is to have it locked away in a home safe.

When you are in serious trouble with your debt, credit counseling agencies offer their services for assistance in reducing debt. They serve as a liaison between the consumer and the charge card company and they attempt to work out special payment plans to help someone get out from under the debts created while charging. Occasionally a buyer may work directly with a credit company and get a special promotion, such as a temporary reduction in the finance charge rate or they may even be offered the opportunity to skip a payment, but that will only prolong the debt payoff process.

Making good financial choices will help to eliminate debt. Consumers will want to stop making charge purchases or only do so when necessary. The process is slow for those with a lot of debt, but not an impossible task. Train yourself to make purchases using cash and you will eventually be free from charge card debt.

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Actually do it!

If you are trying to figure out how to handle settle credit card debt the correct way and you will want to start by looking at it very closely. You want to know if you’ll be able to pay it off and a few short years or if you will need to take several years to pay it off.Many people do not realize it but, filing for bankruptcy may not be a bad thing. This is the case if you have so much credit card debt that you will never be able to get paid off. Filing for bankruptcy will allow you to have a clean slate to start over.

However, if you are able to pay off your credit card debt in a few short years you will want to know where to start.

Start here.

When looking your credit cards and determine which one has the smallest ballots. Then you will want to work very hard to save an extra $200 a month. This may sound like a lot too many people but it can be done if you take the time to look your finances. You’ll want to make the minimum payment on your credit card along with the extra $200 each and every month. You will find that you will be making great strides towards paying off your credit cards.

Once you have the credit card paid off you will want to take the extra money and put it towards the next credit card with a low balance. Continue doing this until you have all of your credit cards paid off.

A lot of people will work on paying off the credit card it that has the lowest in annual percentage rate. While this can be a good idea for some people, it is not the best idea for individuals that are swimming in credit card debt that are trying to achieve credit restoration.

The final thought to remember is that you do not want to bury yourself and financial debt for the rest of your life. If your credit card debt is to overwhelming than you may want to speak to a financial adviser about filing bankruptcy. Just remember that it’s not always a bad thing.

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But before you come to this conclusion, think about all of the other debt relief options that are available to you.

First, you can seek credit counseling. Finance professionals can help you create a plan to get back on the path of financial success. You can find these services in a variety of places. Sometimes there are local non-profit services available for free help. Talking with finance experts can be an extraordinary help because they may know of options that you have never heard of before.

Many professionals can even help you settle some of your debt for less than what you owe. By allowing these people to speak to your creditors for you, you may see all of your interest charges and late fees disappear from your balance due.

Plus, these debt relief programs may even subtract a portion of your principle as an incentive for you to pay off the balance at such a discounted rate.

Loan consolidations are also helpful tools that can help pay off high interest credit cards or loans with a consolidated, low interest loan. They may also be a relief to people who owe a large amount of money to the IRS.

But before taking out a loan to pay off a tax debt, talk to an IRS representative first to see if they can help you with a payment plan or another option.

When you find yourself buried in debt, it is important to remember that there are solutions out there.

Before you decide anything, speak to a professional first to determine what the best course of action is for your unique situation.

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The Fair Debt Collection Practices Act was written within the 1970s and provided a great amount of protection for debtors. You will find strict rules and regulations that a debt collector should abide by, and if any of these regulations are violated, there’s a great chance that you could sue that agency.

But what about that friend of yours who owes you five dollars? Do you have to grant them thirty days to refute the claim? Clearly, you do not.

Who Is Really A Debt Collector?

Courts think about several factors to find out whether the creditor should be regarded the actual credit card debt collector. An agency’s participation inside the actual debt collection process would have to be small.

Could be the debt collection agency is only a collection service?

Do the letters say if the debtor does not pay the credit card debt will be referred for assortment?

Could be the assortment agency paid only for sending letters, rather than commission?

Bill Collection Agencies

If the collection agency does not receive any payments or forward any payments towards the creditor, that is suspicious. If a debtor doesn’t make a response towards the letter as well as the selection organization has no further contact with the debtor, or if it doesn’t obtain the files of the debtors, they possibly are going to become regarded bill selection agencies.

Know Your Creditors And Your Rights

The lesson you must walk away with is that it’s crucial that you know who you are paying your debt to. It’s often wise being on the ball when it comes to your funds.

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Never use a credit card that advertises “everyone is approved.” These credit cards loaded with fees and do not offer you the chance to increase your credit limit. Often, you will end up with paying $100 in fees for a $300 credit limit.

Consider Secured Credit Cards. To repair your credit you must exercise some financial responsibility. Secured credit cards have much lower rates and fees. But, you do have to make an initial deposit. This deposit will be your new credit balance.

Increase Your Credit Line With Additional Deposits. If you select a secured credit card as a means to rebuild your credit, begin with a $300 deposit and make additional small monthly deposits to the account. This will allow you to increase the credit limit and create a savings account for yourself. As your credit limit rises so will the influence and credibility the credit card makes on your overall credit report.

Do Not Use Your New Credit Card For Anything. When the card arrives, cut it up immediately after you activate it. Pay the annual fee each year and forget about it. The variables on the credit report that influence and help to establish credit are, length of time the account has been open, the credit limit, the balance vs. the credit limit ratio and of course the payment history. Using the card does not rebuild your credit faster. You are trying to repair your credit. Debt is what got you into this mess in the first place.

Do Not Let Your Balance Exceed 50% Of Your Credit Limit. OK, you did not take my advice. So, if you use the credit card, do not let the balance exceed one-half of the limit. The credit card company will report this fact “Maxed” out credit cards are viewed as a liability to your credit score.

Get A Second Secured Card And Repeat The Steps. If you get a second card, AND DO NOT USE IT, you will now have two credit references with zero balances. Use a different bank for the second account so that you have more than one company making positive credit reports to the credit bureau.

Remember these steps as you use your secured credit card to rebuild your revolving credit.

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There are many debt reduction programs that claim to help with debt. Unfortunately, many of these programs fail to provide meaningful debt solutions. Instead, they rely on gimmicks and smoke screens to entice consumers to enroll in to programs that simply do not work. This makes it important for consumers to know what to look for in a quality debt reduction program.

With this thought in mind, here are some tips and suggestions that can help consumers find a debt management program that gives consumers the quality help with debt they deserve.

Choose A Reputable Debt Consolidation Agency

The first step in choosing a debt reduction program is finding a debt elimination group that has a proven track record of honesty and success. Always conduct a careful background check of a firm to see if it is honest to do business with.

When conducting the background check, check to see if the firm is a member of the National Foundation for Credit Counseling (NFCC). The NFCC has strict standards that force members to be financially responsible and to be completely honest with every client they help. These two things ensure consumers who use NFCC members receive honest help while trying to get out of debt.

These things also make NFCC members a good choice for credit card debit help or other debt management services.

Choose An Agency With A Good Track Record

In addition, check the success rate of the debt reduction program.

If the program’s success rate is verified by an independent auditing agency to be about 80-85%, the chances are good that the firm can help consumers get the credit help they need. That rate may seem high, but legitimate companies will go out of their way to help their clients get out of debt.

This makes the firm’s success rate a good benchmark to use when deciding on which firm’s services to use.

Choose A Debt Consolidation Firm With A Broad Range Of Services

In addition to providing honest debt management services, a good debit reduction agency will also provide other meaningful financial services.

For example, look for an agency that helps consumers create realistic budgets and avoid home foreclosure. A debt management agency that provides these services is trustworthy to provide credit card debit help because it shows the agency is able to provide help to consumers no matter their financial situation.

Getting Help With Debt:  Do Your Research First

If consumers do some research in advance, they will find many trustworthy agencies that provides quality help with debt.

There are several resources online that can help consumers find these trustworthy agencies. Try a Google search using the keywords, “help with debt” and “debt reduction programs” to start. From there, look for a listing of programs in your local area.

With time and perseverance, finding a debt management agency that is trustworthy to do business with is possible.

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Unemployment, reduced wages, and excessive debt can contribute to a person’s desperate search for debt relief. Unfortunately, most people don’t know where to turn.

An increased number of debt settlement scams have frightened even the most trusting people. Knowing where to look and what to expect will decrease scam victims. Knowledge goes a long way.

Why Do I Need Debt Counseling?

Some may already realize they need to seek debt counseling, but others are unaware of the benefits.

When a creditor calls repeatedly and demands payment, debt settlement can help stop these annoying phone calls. Debt counseling can help the borrower with credit card debt consolidation as well. If the borrower cannot afford the current monthly payment on all credit cards, he or she will benefit from debt counseling.

The debt settlement company can combine all credit card debt into one low monthly payment. Most debt counseling companies charge a fee, but unlike profit debt settlement companies, non profit companies offer low rates or sometimes free services.

How to Find a Non Profit Debt Consolidation Company

All non profit companies must be registered with the Federal Trade Commission.

Some debt consolidation companies may claim to be non profit, but you can look up their status with the FTC or Better Business Bureau. Don’t do business with a non profit debt consolidation company that demands high fees for their services.

Many non profits will help consolidate debt for free.

Look for reputable companies or ones that are affiliated with a religious organization.

Be sure to always research any debt counseling company before signing up for their services.

Debt reduction takes time to achieve, so be aware of companies that promise to ‘get out of debt’ in an unrealistic amount of time.

How Can Debt Counseling Services Help Someone Get Out of Debt?

A reputable non profit debt consolidation company has debt solutions that can help anyone with debt reduction.

Services usually include consolidating all debt into one monthly payment.

These companies work with creditors to reduce the total debt owed, which reduces the monthly payment. They can also eliminate any late fees or reduce interest rates by negotiating with creditors. While anyone can try to negotiate fees or interest rates with creditors, debt settlement companies are more effective than the average person.

Using Non Profit Debt Consolidation To Eliminate Debt

Eliminate debt the easy way by taking advantage of non profit debt consolidation services. One call to a debt agency can save someone the headache of calling and arguing with creditors. Debt solutions are easier and more convenient than ever thanks to the Internet. Just be sure to research any debt settlement company to avoid scams.

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The net result is that the payments are lower and more of each payment goes to principal reductions.

This form of debt management has been used by many borrowers to get debt help with credit consolidation.  Let’s take a look at a few of the factors to consider when contemplating a debit consolidation loan.

Important Debt Consolidation Loan Factors

There are three factors that affect the terms of debt consolidation loans.

These are the payment term, the interest rate and the monthly payment.  As each increases or decreases, it affects the other two factors involved with respect to the loan consolidation offer.

• If you want a small payment and low interest, you have to consolidate loans over a longer repayment term.
• If you want a short payment term, then you have to find a low interest rate and/or accept a higher monthly payment.
• If you can only find loans with high interest rates then you have to accept a longer repayment term and/or a high monthly payment .

Repayment Term. The amount of money borrowed will be the determining factor when calculating the repayment term.  If you have a large number of debts or high balances, then you will need a larger credit card consolidation loan to payoff and combine the multiple debts into one debt.  If you only have a few small debts then, obviously, the term of the credit card debt consolidation loan can be shorter with the same monthly payment.

Interest Rate. You need to take a good look at the interest rate on the debt consolidation loan.  The debt consolidator will offer a low monthly payment over a longer repayment term in order to mask the effect of high interest.  In fact, the high interest rate is the very reason the loan has to have such a long repayment term.  Otherwise, the monthly payments would be quite large.

Monthly Payment. If you want lower monthly payments, you are going to have to accept a longer repayment term and look for debt solutions that offer the lowest interest rate.  If you have a mediocre or bad credit score, the interest rate might be high and there will be little, if anything, that you can do about it.  So, the only way to get a lower monthly payment is to extend the term of the loan.

As you can see, you have to weigh each factor carefully to find the best debt consolidation loans for your needs.

Is A Debt Consolidation Loan The Best Option?

Owing money to a variety of different lenders can cause you to miss payments of collapse under the burden of the total payments required each month.

The biggest advantage when you consolidate debt is that you will pay one note to one lender and be able to calculate exactly when you will get out of debt.  These type of debt solutions allow you to regain control over your finances and ultimately get out of debt.

That being said, it is ultimately up to you to avoid falling back into the trap of credit card debt.

Learn from your mistakes or you will doomed to repeat them.

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Many ultimately decide to consolidate debt with some sort means to consolidate credit card debt.  Debt consolidation requires the borrower to examine the type and amount of credit card debt before ultimately selecting the option that is right for his circumstances.

Often, borrowers realize that essentially they have a choice between a credit card balance transfer or a debt consolidation loan.  The advantages of one over the other depend mostly on the number of unsecured personal loans versus the amount of credit card debt and the borrowers’ credit score.

Interest Free Balance Transfer

An interest free balance transfer credit card is an short term debt consolidation solution.  At the end of the initial term, the consumer would have to search out another interest free credit card consolidation offer.  However, there are three problems in using short term balance transfers for credit card debt consolidation.

The 3-4% Balance Transfer Fee. If the consumer is lucky, the balance transfer fee would be capped at $50 to $75 dollars.  However, some credit card issuers have been removing the caps on balance transfer fees.

A Good Credit Score Is Essential. If the consumer has missed a payment or made a late payment on any other bill, credit card issuers are unlikely to approve the application.

The Interest Free Period Is Short. The consumer is betting that he or she will either be able to pay off the credit card debt before the end of the time period or transfer the remaining credit card balance to another interest free credit card.

As such, the interest free credit card should be reserved for those that can pay off the balance within six to twelve months.

Unsecured Debt Consolidation Loans

A long term alternative is to consolidate debt with a low interest debt consolidation loan.

The unsecured debt consolidation loan takes the complication out of credit card debt relief.  Consolidate loans in a way that combines many small balances and obligations to one with a (hopefully lower) monthly payment.

Even though it is not an in interest free credit card, the debt consolidator does get the advantages of (1) a single low monthly payment, (2) the positive credit entries showing all other debts as paid; and, (3) the inability to charge more, thereby never getting the debt paid.

Short Term Or Long Term Debt Consolidation Solution?

If you have a small amount of credit debt, then an interest free credit card is a good option for you.  But be prepared for a balance transfer fee and be able to produce a good FICO score.

For longer term solutions to credit card debt, then an unsecured debt consolidation loan is the preferable choice.  However, note that credit counseling services advise against using a HELOC to get out of debt.  The debt consolidator will be paying interest on impulse purchases for twenty to thirty years – and that makes no sense at all.

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Can I Benefit From A Credit Card Debt Consolidation Loan?

One of the main ways to debt relief is to consolidate debt into one lower interest loan.  Consider these factors when determining whether or not such a debt consolidation plan is right for you.

• Multiple cards with large balances,
• Large monthly payments on the multiple cards,
• Increasing balances over time, and/or,
• One or more of the cards is maxed out, or near its credit card limit

If one or more of these circumstances apply to you, a debt consolidation loan is a smart choice to ease the burden while assisting you in getting out of debt efficiently.

Getting Started With Debt Consolidation Loans?

In its simplest form, credit card debt consolidation involves consolidating credit card debt into one, lower interest loan.  Therefore, in doing so, your goal should be to lower your interest rate (and monthly payment if possible) on the new consolidated credit card loan balance.

However, no consolidation strategy will not work unless you exercise the discipline to use the savings to pay more on the loan principal each month.  Discipline also means searching for ways to decrease monthly expenses and applying those savings to reduce principal on the debt consolidation loan.

You simply have to live on a cash basis while repaying your debt and avoid spending more money than you have.

Here Are Some Debt Consolidation Options

In the tight credit market that we have today, the best debt management options are available to those with high FICO scores.  You cannot afford to wait until you have bad credit to implement a debt consolidation strategy.  You must begin to look for consolidation loans at the first sign of financial difficulty.  Here are some options to consider for consolidating your credit card debt:

• Transfer balances to a low interest credit card. Interest rates on these cards run as low as 7.00% if you have a very good credit score.

• Use balance transfers to consolidate balances. Credit card issuers are still sending out balance transfer checks which offer a low interest rate for the life of the balance (some as low as 3.9 to 4.9 APR) or some shorter time period.  You will have to pay a balance transfer fee in the amount of 3-4%, but it still represents an excellent opportunity to consolidate credit card debt.

• Open a HELOC. If you own your home, you can take advantage of your home’s equity as a source of low interest lending.  Unfortunately, this option may not be as readily available as it was only a few short months ago.  Most home values have plummeted, leaving the homeowner with very little (or no) equity to draw upon to consolidate debt.

• Negotiate with your credit card company. Use the current economic climate as leverage to negotiate balance transfers into one of your lower interest rate credit cards.  This may lead to derogatory entries on your credit report so be careful if you already have excellent credit.

These credit card strategies are only available to consumers with good credit scores.

Consumers with bad debts or poor credit scores will have to explore other means to achieve their debt consolidation goals.  But, even if you have bad credit, it makes no sense to do nothing.

What About A Non-Profit Debt Consolidation/Credit Counseling Company?

A good nonprofit credit counseling company can put together a debt consolidation program and can negotiate credit card debt relief for you.

Contact the National Foundation For Credit Counseling to find a list of reputable consumer credit counseling and debt consolidation organizations in your area.  A good non-profit credit counseling company will often be able to get people out of debt easier than going it alone.

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The cost of higher education is spiraling out of control.

With tuition, fees, books, meals room and board, the average student cannot obtain a quality college education without some sort of financing.  Annually, $135 billion in financial aid is distributed to undergraduate and graduate students.

Students borrowed almost $17 billion more in student loans from non-federal lenders to supplement their education expenses.  Adjusted for inflation, student loan debt has increased by 100% over the past ten years.  It doesn’t take a loan calculator to recognize that the increased cost of education will create the need for more student loan debt solutions.

Most students see a student loan as a good investment that allows them to obtain an education, get a better job and life. However, the increased amount of student loan debt could lead to financial burden in the future.  Thus, the increased student loan burden obtained today could lead to a delay in obtaining a home, car, marriage and family in the future.  The solution continues to be to combine the student loans into one student loan consolidation debt.

How Does Student Loan Debt Consolidation Work?

School loan consolidation, (“federal debt consolidation”) allows the student to combine some, if not all, eligible federal student loans into one loan with a single lower monthly payment.  Most students also extend the repayment term over a longer period in order to further reduce the payments.  The interest rate assigned to the loan is a fixed rate which is calculated as the weighted average of the interest rates of each of the loans that are part of the consolidation effort..  Student loan consolidation rates are capped at 8.25%.

Under the federal student loan consolidation program, no credit checks are necessary, however, if any loans are in default, three consecutive payments must be made prior debt consolidation.

Eligibility For Student Loan Debt Consolidation

The following types of federal student loans are eligible for federal student loan debt consolidation:

• Stafford (subsidized and unsubsidized)
• PLUS SLS (Supplementary Loans for Students)
• Perkins
• Nursing Student Loans (NSL)
• Health Education Assistance Loan (HEAL)
• Health Professional Student Loans (HPSL)
• Health Professions Student Loans (HPSL) Loans for Disadvantaged Students (LDS)
• Federal Insured Students Loans (FISL)

What about private student loans?  Unfortunately, private student loan consolidation is not available under the federal  program for consolidating student loans.

How To Find A Debt Consolidation Lender

Most reputable lenders have some sort of online presence.  This makes is easier to compare student loan consolidation offers. Take some time to compare different incentives and lender offers.  Some lenders may offer an additional credit to principal or further reduce the interest rate on the consolidation loan if the borrower makes a certain number of payments on time.  Other lenders might make an offer to a married couple to consolidate student loans of both souses into one loan.

Fortunately, in the United States, federal student loan programs give all persons access to a great education.  More and more, students need to plan ahead and evaluate their borrowing needs.  Fortunately, even after graduation, the borrower has options to to get out of debt using the federal student loan consolidation progam.

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