Is Debt Consolidation Loan RIGHT For You?

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Is Debt Consolidation Loan
RIGHT For You?

• www.newhorizon.org

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Nobody plans on getting into debt.

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Debt is something which may lead to a great deal
of anxiety.

More marriages fail due to financial issues than
fail due to infidelity!
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So getting your debt under control is really
important.

For those that are faced with severe debt issues,
obtaining a debt consolidation loan is regarded
as the best solution.
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But how do you know whether it's RIGHT for you to
consolidate your debt?
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1. Can you qualify for a debt consolidation loan?

• You will qualify for a debt consolidation loan
  if
• Good credit -- your credit score may be low due
  to all of the credit you're utilizing BUT you
  don't have overdue payments, charged-off accounts
  or collection accounts in your credit score.
• Employed -- they would like to be certain to have
  the money to cover the loan. Being financially
  secure is quite important if applying for this
  kind of loan.

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2. Can my credit score go down if I take out a
debt consolidation loan?

• It should actually go up!
• As soon as you use the loan to pay off your
  credit cards, your credit utilization will go
  down, which will naturally improve your credit
  score.

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Consequences that have to be considered

• Paying off debt with another debt that's secured
  by your house, or car or some type of collateral,
  entails dangers.
• That is the reason why borrowers are cautioned
  against turning into consolidation without
  considering other potential solutions.

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Choosing the most appropriate debt consolidation
loan for you!

• RESEARCH - Use the world wide web to find
  reviews, have a look at their listing on BBB.org
  and really do your homework before you sign up.
• LOWEST MONTHLY PAYMENT - Do not just pick a
  program because it is offering you the lowest
  monthly payment. They may be giving you an
  elongated loan term to make this low monthly
  payment. Which could lead to you devoting tens of
  thousands of dollars throughout the life span of
  the loan.