Consolidating Credit Card Debt Easier for Students Now

"When you are a college student who has been marred by excessive high interest credit card debts, you need to avail debt consolidation advice to address your credit problems. This could enable you to secure a debt reduction strategy that works best for your specific financial situation and thus, become debt free much faster."

By consolidating credit card debt, a borrower always has the opportunity to become debt free quickly. Most of the borrowers do not realize this. And if you are a college student who has been swamped by significant credit card dues, it would not be that easy to even pay minimum monthly installments on your multiple credit cards. As a result, interest could keep on accumulating and finally, you might find yourself in a situation in which management of credit debts finally becomes an impossible task. Therefore, for collegians who have debt burden arising out of credit cards with huge balances, it could be important to contact credit consolidators at the right time or else situations may go tawdry tavern.

Get Experts Advice For Debt Consolidation

There are numerous benefits which you could be in a position to derive by opting for credit card debt consolidations. For example, you could drastically reduce your monthly credit card payments by securing low rate debt consolidation loans and thus, save lot of money which you could be otherwise paying on high interests and penalties. Alternatively, you could erase of your credit dues much faster. Alternatively, you could also opt for debt settlement or elimination plans which enable you to get your overall debts reduced by almost 50%. But to secure the best solution for your specific financial needs and requirements, you need to obtain professional credit debt help by a professionally qualified and certified debt consolidator.

By securing credit card debt consolidation advice, you could be helped to explore various debt relief alternatives and actively assisted to choose one that practically works for you. Today you could find many such firms on the internet that guide borrowers in getting rid of excessive credit card debts. Nevertheless, you should be on the lookout for a firm that provides good amount of personal attention and to that effect, you could go online search for company that offers services on a free and nonprofit basis. A reliable and reputable nonprofit credit counseling service could be your most ideal bet as it could enable you to negotiate with each of your creditors for lowering your credit card balances considerably.

Whether obtaining a low interest rate debt consolidation loan or an effective debt settlement plan, such debt assistance enables you to make an informed decision. Hence, it is advisable to take advantage of such help and choose the right option for your current financial situation.

To get your free and nonprofit debt consolidation advice, it's strongly recommended to utilize the professional services offered by reputed online service providers like LoansStore.

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Debt Consolidation Loans Offered by Wells Fargo

Wells Fargo has announced that it offer debt consolidation loans as it can help customers to effectively manage and reduce their debt over time.

The bank said that debt consolidation loans, which can be classified as student loan obligations, car loans, and credit card debt, but will not improve the borrower's credit score immediately.

Wells Fargo revealed that it aim to lower the borrower's payments and total obligation as lower payments will increase the discretionary spending of the borrower.

The bank, which offers several options, including rolling the debt into a balance transfer credit card, also provides a very low initial interest rate which allows cardholders to pay off the loan with zero or near zero interest.

"Consolidating debt with a Personal Loan can help you reduce interest costs and pay off debt faster," the bank said, stating that personal loans are another option.

The government needs to allow graduates to consolidate their debts

When I was applying to university six years ago, I knew student loans were going to be part of that process. There was no question that I'd accumulate debt over the next four years. But I was okay with it. Getting my bachelor's degree was worth the $40,000 price tag.

I'm going to go out on a limb and say I'm grateful Canada Student Loans exists and honestly don't mind that I have student loans. But there's a heck of a lot about the organization that needs improvement.

While the application process is lengthy and complicated, the organization doesn't get truly complicated until you enter repayment. And if you're a graduate like me — who grew up in B.C., went to university out of province and then did continuing education in a third province — things get really complicated.

Unlike provinces like Ontario, where the provincial and federal components of a student's loan are combined, Student Aid B.C.'s website explains, "Though there is a single application process for both types of loans, each government addresses repayment issues and inquiries separately."

That simple little clause is where my headaches really began. That means little things like monthly payments and changing my address have to go through two different organizations. Not the end of the world, I suppose. But to further complicate things, I decided to ride out the recession by taking one class last fall to break up my time spent watching TV. I applied for a part-time loan, which I'm now paying off in a separate monthly payment, even though it was issued from the same organization I already carry one loan with.

I now make monthly payments on a $30,000 federal loan, a $1,000 federal part-time loan and a $4,000 provincial loan. And there's nothing Canada Student Loans can do to make my life easier. While low interest rates and flexible repayment options are certainly helpful, ease of repayment is higher on my list of ways the government could help new graduates.

By making it impossible for graduates to consolidate their loans, or at the very least the administration of their loans, more graduates like my fiancé may opt to get out of Canada Student Loans all together. He re-financed his loan with CIBC when interest rates bottomed out during the recession. His payments are higher, he pays slightly more interest and has little flexibility. But he'll be done repayment five years earlier and only has to do deal with one customer service professional when he needs assistance.

Canada Student Loans should be paying attention to people like him. Bailing for the competition is not good business, especially when the competition could get graduates into sticky situations because the flexibility factor is almost gone.

But as it is, Canada Student Loans is nothing but frustration for me. It seems like I'm on the phone every other week with various people about my split-personality loan. The federal government should help graduates to consolidate their many loans into one monthly payment to Canada Student Loans, allowing them to speak to only one person when they have questions or problems.

4 Reasons to Consolidate Your Student Loans

Consolidation is like refinancing—you get a new loan, the new loan pays off your old loans, and you pay the new consolidation loan instead. Why bother? Below are some important FAQs on this subject:

Which loans can I consolidate? You can consolidate pretty much all kinds of federal student loans like Subsidized and Unsubsidized Stafford Loans, PLUS Loans, and Perkins Loans, including most federal loans in default. But be careful—defaulted Direct Consolidation Loans can't be reconsolidated, so you only get one chance to use consolidation to get out of default.

[Pick from the federal student loan smorgasbord.]

When does consolidation make sense? Consolidation might make sense if:

1. You want to combine your federal loans and make just one monthly payment.

2. You want to lock in a fixed interest rate on variable interest rate loans (those borrowed before 2006).

3. You need a way out of default.

4. You have Federal Family Education Loans, or FFEL (federal loans from a bank or private lender like Sallie Mae) and you want those federal student loans to be eligible for Public Service Loan Forgiveness (since only Direct Loans are eligible).

[Learn more about the Public Service Loan Forgiveness program.]

What are the downsides to consolidation? It's important to understand the potential disadvantages to consolidation. For instance, you'll have the option of taking longer to repay, so a consolidation loan could cost you more over time (since interest keeps adding up until you're done). If you consolidate while you are in school—currently allowed under limited circumstances—you'll lose your grace period. In addition, if you're close to paying off your loans, consolidation might not be worth the effort.

How can consolidation get me out of default? If you're in default on your student loans, you can't get new loans to go back to school, and you face severe collection procedures. Consolidation can give you a fresh start. You can consolidate defaulted student loans into a Direct Consolidation Loan and stop collections including garnishments and tax intercepts. Be aware that if you are in default, your balance will go up after you consolidate, because collection fees will be added to the loan.

Can I consolidate my private student loans into a Direct Consolidation Loan? I wish. Unfortunately, private loans are not eligible for consolidation into a Direct Consolidation Loan. And, for Pete's sake, beware of consolidating federal loans into a private consolidation loan. Federal loans have important borrower protections that you lose if you choose to consolidate federal loans with a private lender. Also, federal consolidation loans generally have lower interest rates. Only Direct Loans offer federal consolidation loans these days.

[Read the 6 advantages to federal student loans.]

How do I apply for a Direct Consolidation Loan? You can apply online for a Direct Consolidation Loan. Direct consolidation loan applications submitted online are processed more quickly than those submitted by mail. Be sure you include the right information about the loans you are consolidating. You'll need to know the balances of all your loans to complete the application. If you make mistakes on the application, it will probably delay processing.

Student Loan Defaults Are On The Rise: Is Anyone Really Surprised

If you're in default on your student loans, you can't get new loans to go back to school, and you face severe collection procedures. Consolidation can give you a fresh start. You can consolidate defaulted student loans into a Direct Consolidation Loan and stop collections including garnishments and tax intercepts. Be aware that if you are in default, your balance will go up after you consolidate, because collection fees will be added to the loan.

Need for Diversification Spurs Interest in Student Loans

Offering private student loans can be advantageous to a credit union in many ways, and more and more CUs are taking an interest in the product.

"I have not been at a credit union strategic planning meeting in the last nine months where student lending has not come up. It has become a major topic of strategic conversation because students need the loans and credit unions need the business," said Dennis Dollar, principal partner of credit union consulting firm Dollar Associates.

Private student loans can also be a way to diversify from auto loans, credit cards and mortgages, as well as earn income.

"Credit unions are looking for any source of additional income that they can find with a reasonable amount of risk attached," Dollar said. "I believe that the earnings potential is perhaps greater with private student lending than it would have been under the previous guaranteed program," known as the Federal Family Education Loan Program, by which credit unions, banks and other lending institutions made government-insured loans to parents and students. In May, President Obama signed legislation mandating that no new FFELP loans could be made after June 30, 2010.

For community-minded CUs, the loans' most important function may be helping families for whom scholarships, grants and federal loans are not enough to cover the actual cost of attending college, which has skyrocketed in recent years.

IH Mississippi Valley Credit Union of Moline, Ill., entered the private student lending arena "because we had a strong need within our community for student loans," said Laura Ernzen, vice president of marketing. "It became clear that the financial environment had shifted and with those changes, our members had fewer affordable options to fill the gap between government and school-based financial aid and the overall price of tuition."

With 47 being the average age of credit union members, another valuable aspect of private student loans is that they draw young people to the credit union and create a foundation for a lifelong relationship with Gen Y members.

"Member service is always our primary driver here at American Heritage and we recognize how important this loan program could be in our long-term relationship with our [young] members," said Bruce Foulke, CEO of the Philadelphia-based credit union. "Student loans to members will help us earn their continued patronage as they grow into their peak borrowing years."

Fynanz, the financial technology company that powers cuStudentLoans.org, a private student loan marketplace, has brought 4,000 new Gen Y members to its credit union partners over the past two lending seasons, according to Director of Marketing Christian Widhalm.

The company was founded in 2007 and the lending capacity of its platform is nearly $200 million. Fynanz's nationwide student lending network has 98 credit union partners, 78 of whom offer EdAccess, its turnkey private student loan program, and 20 of whom have custom-built programs. CU Student Lending, a CUSO formed in June of 2010, manages the EdAccess loans.

Debt Consolidation Loans for Bad Credit Customers

Digital News Report – Now that the holidays are over many Americans are looking for ways to consolidate their high-interest credit card and personal debt. There are many options available, even for people with less-than-perfect credit.

Initial estimates from Mastercard indicate that holiday spending this season increased more than five percent over the previous year. Much of that debt was placed on credit cards.

Wells Fargo and other banks are ready to help consumers deal with their debt. The debt might include credit card debt, student and car loans.

The bank says you do not need a home to acquire a debt consolidation loan. "But what if there's no home equity to leverage because you rent?," the bank asks in a statement. "You may still have options."

There are two types of personal loans: unsecured and secured. Wells Fargo says customers can use their vehicles for bill consolidation. This may provide customers with a lower interest rate and make qualifying easier.

The bank lists several other reasons you might want to use a car as collateral for debt consolidation.

The goal is to lower the interest rate and monthly payment. One bill a month can also make things less complicated. There is "no direct cost to apply".