http://www.nomoredebts.org/canhelp/debt-consolidation-loan-options/debt-consolidation-using-a-debt-management-program.html Learn how a debt management program works and consolidate your credit card debt into one monthly payment. Call us today. 1-888-527-8999

What is DEBT CONSOLIDATION? What does DEBT CONSOLIDATION mean? DEBT CONSOLIDATION meaning – DEBT CONSOLIDATION definition – DEBT CONSOLIDATION explanation.

Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license.

Debt consolidation is a form of debt refinancing that entails taking out one loan to pay off many others. This commonly refers to a personal finance process of individuals addressing high consumer debt but occasionally refers to a country’s fiscal approach to corporate debt or Government debt. The process can secure a lower overall interest rate to the entire debt load and provide the convenience of servicing only one loan.

Debt generally refers to money owed by one party, the debtor, to a second party, the creditor. It is generally subject to repayments of principal and interest. Interest is the fee charged by the creditor to the debtor, generally calculated as a percentage of the principal sum per year known as an interest rate and generally paid periodically at intervals, such as monthly. Debt can be secured with collateral or unsecured.

Although there is variation from country to country and even in regions within country, consumer debt is primarily made up of home loans, credit card debt and car loans. Household debt is the consumer debt of the adults in the household plus the mortgage, if applicable. In many countries, especially the United States and the United Kingdom, student loans can be a significant portion of debt but are usually regulated differently than other debt. The overall debt can reach the point where a debtor is in danger of bankruptcy, insolvency, or other fiscal emergency. Options available to overburdened debtors include credit counseling and personal bankruptcy.

Other consumer options include:

debt settlement, where an individual’s debt is negotiated to a lesser interest rate or principal with the creditors to lessen the overall burden;

debt relief, where part or whole of an individual debt is forgiven; and

debt consolidation, where the individual is able to acquit the current debts by taking out a new loan.

Sometimes the solution includes some of each of these tactics.

The bulk of the consumer debt, especially that with a high interest, is repaid by a new loan. Most debt consolidation loans are offered from lending institutions and secured as a second mortgage or home equity line of credit. These require the individual to put up a home as collateral and the loan to be less than the equity available.

The overall lower interest rate is an advantage of the debt consolidation loan offers consumers. Lenders have fixed costs to process payments and repayment can spread out over a larger period. However, such consolidation loans have costs: fees, interest, and “points” where one point equals to one percent of the amount borrowed. In some countries, these loans may provide certain tax advantages. Because they are secured, a lender can attempt to seize property if the borrower goes into default.

Personal loans comprise another form of debt consolidation loan. Individuals can issue debtors a personal loan that satisfies the outstanding debt and creates a new one on their own terms. These loans, often unsecured, are based on the personal relationship rather than collateral.

— Created using PowToon — Free sign up at http://www.powtoon.com/ . Make your own animated videos and animated presentations for free. PowToon is a free tool that allows you to develop cool animated clips and animated presentations for your website, office meeting, sales pitch, nonprofit fundraiser, product launch, video resume, or anything else you could use an animated explainer video. PowToon’s animation templates help you create animated presentations and animated explainer videos from scratch. Anyone can produce awesome animations quickly with PowToon, without the cost or hassle other professional animation services require.

There are criminals that try to scam people out of money. If you get a call about a debt, this video will help you with what to do.

Debt review, debit counselling, how to reduce your debts, debt reduction,

Don’t forget to like, comment, and subscribe so you don’t miss any future videos!

Subscribe! www.youtube.com/c/thaliarose

Receive $10 off your first Erin Condren purchase!
https://www.erincondren.com/referral/invite/thaliarivas0913

Other ways to connect!
___

INSTAGRAM: @THALIAROSEYT

EMAIL: thaliaroseyt@gmail.com

*All opinions are my own. This is NOT a sponsored video.*

Don’t just move the problem around, fix it and get your debt paid off. Contacting a certified debt counselor to help you handle your money and set up a budget will get you started.

A counselor is an advisor who has the training and resources to help you achieve your best financial future. For confidential advice from an NFCC trained, certified counselor, call 1-800-388-2227 or visit www.DebtAdvice.org.