Debt Consolidation

MasterCard Survey Nets Curious Responses

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Security is a big concern for everyone. MasterCard recently surveyed cardholders about their wants, needs, and fears, and while security topped the list of wants, needs, and fears, other answers were curious to those in the processing industry. While card security has been iffy the past few years, it is set to change (hopefully) in 2016 with the implementation of chip and PIN cards, the worries about card security are warranted.

According to the survey, 77% are concerned about identity theft. 92% are taking steps to secure their identities and keep themselves safe online, yet 46% rarely or never change their online banking or credit card passwords. Sadly, and perhaps most disturbingly, over 1/3 of those surveyed admitted to using a public computer or public Wi-Fi to check their online banking or credit card accounts. Forty-four percent also use the same password for multiple online accounts.

While online security is a big deal, many want security but are not taking the steps to ensure their security. Perhaps it is out of habit that they commit these financial sins, or perhaps they are not sure what to do. The financial industry needs to do a better job of educating the public on what they need to do – and avoid – when dealing with online banking and financial accounts. If not, everyone suffers, from the consumers to merchants, to processors having to deal with a chargeback.

The good news is that 69% already use a chip card, or want one when they are implemented. Some companies are using them as a voluntary option, and so far the feedback is positive. This cuts down on chargebacks, but merchants need to make sure that they have chargeback insurance, regardless of what type of card is being used by their customers. There are few chargeback insurance providers in the USA, but when you find one, make sure that you ask questions. Question their knowledge about the industry you are in, and question how their process works. Every chargeback insurance provider operates differently, and not all are the right choice for every merchant.

Benefits Of Debt Consolidation Loan

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If you owe money to somebody or if you have taken multiple loans and are finding it difficult to deal with the repayment it is pivotal that you manage the debts as soon as possible to get your life back on track. The stress caused by the constant worry of repaying the money can have a significant impact on your daily life, it can diminish your productivity. One of the best solutions to deal with the problem is to get a debt consolidation loan.

The debt consolidation loan is a unique financial arrangement that allows you to club all your dues or loans into a single loan. This arrangement helps you in simplifying the credit repair process as you need not have to keep track of the multiple loan accounts, bills or the different interest rates. The process would not only streamline your repayment process but also reduce your stress to a great extent.

Another significant benefit of opting for this repayment method is that you would have to deal with only one entity; you can get rid of the hassles of dealing with different companies. You can easily repay your loan to a single lender. This also eliminates the risk of you forgetting to make payment to a particular lender and feel overwhelmed by its consequences. This arrangement is especially beneficial for people who have availed more loan than they can manage.

One of the key factors that cause unimaginable stress to the people who avail loan is the constant collection calls from the lending institutions. More often than not people get collection calls at unexpected time and place where it is not only embarrassing but also tarnish your reputation as well as jeopardize professional endeavours. Creditors tend to drop it at the borrowers door step at home and even workplace. The best way to stop these calls and save yourself from facing the embarrassment is to consolidate your loan and make a single payment every month and be assured that the creditors receive their due.

You must also remember that by adopting the debt consolidation loan technique you can significantly improve your credit score. When you repay the loan in full and when the account is closed, it will automatically have a positive effect on your credit score and make you eligible for applying for loan again in future.

While you choose to consolidate all you loans, you would get valuable educational resources and financial tips to get the deal on you consolidation loan. Typically, the lenders of such type of loan understand the financial condition of the borrowers and offer great help you resolve your financial problem and provide advice on how to avoid getting trapped into similar situation in the future. Some of the lender also provide on how to manage your expenses in a better way, how to derive a good monthly home budget plan and how to save more. You too can be proactive and do your research on controlling your impulsive shopping habits and use the various discounts coupons available on the internet. Paytm Coupons can of be great use while buying products like electronics, health supplements or even making booking for your travels.

A Beginners Guide To Debt Consolidation

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Debt consolidation can be a positive thing in your life. After all, if you want to make sure that you are managing your money in a sensible and responsible manner then consolidating your debts could be just what the doctor ordered. If you are keen to ease financial burdens and you amassed a lot of debt, it may be worth looking into how you can consolidate your loans. After all, the emotional impact of debt can be as damaging as the financial impact.

For many, they are keen to make sure that you are taking positive steps into leading a healthier financial lifestyle. You may want to know more about debt consolidation and how it can help you.

Here, we will go in baby steps and cut through the financial jargon. Sometimes, a no nonsense guide to debt consolidation can take the stress out of managing your financial processes.

Let’s delve into a beginners guide, ignore the financial terminology and start making sense of your money.

Debt Consolidation 101: Separating Fact from Myth

Sorting out your debts means that you may have to consolidate them into one monthly repayment. If this applies to you, you will consolidate your debts by using an intermediary company. This can be a third party. Some people opt to use external, independent financial consolidation loans. Others prefer to seek assistance from their local bank.

Usually, a person will seek out this kind of loan if they have a lot of debt from a wide number of different creditors. Dodging phone calls, answering a bout of letters and a wide range of different communication methods from these creditors can leave people feeling anxious and stressed. If you feel that you are being bogged down by debt, you need to talk to a loan consolidation company. They will act on your behalf to negotiate with lenders and determine your payments.  They can negotiate on interest fees and the timeliness of when the loans need to be paid. There is a great advantage to this as it can reduce your overall debt, but it can also ensure that you are in a great financial situation overall.

Sorting Out Your Debts

So, now you have the lowdown on debt consolidation loans you need to figure out whether this is the right option for you. Now is the time to figure out your existing debt and what you need to pay back.

Debt can have a wide range of different financial terms. The most obvious is ‘debt’ but liability, obligation and financial commitment are often bandied around when talking about loans and debt. If these are used on your agreements and letters, they all mean the same thing: debt.

Take out your documents and see what you owe. This is the simplest way of figuring out your initial debt. Let’s face it, if you don’t know how much debt you are in from the onset, you are likely to end up in trouble. Economically speaking, you need to have a working knowledge of what you owe.

Now is the time to look at your bank statements. Highlight where your debt is going and at what time of the month. Take a look at the payments. Are they the same every month or do they differ? Bank statements, rather unsurprisingly, can offer you more clarity on your current debt.  This means that you will have more ‘real’ information to work with. What’s more, if you do device to use debt consolidation, bank statements are a great auditing tool to have in your working arsenal.

Credit Reports

Once you have assessed your debt and bank statements you need to make sure that you have a copy of your credit report.

There are three main credit reports that are used in the UK:

  1. Experian
  2. Equifax
  3. Call Credit

These credit reports can give you a good idea of your current debts and financial history. By obtaining these reports, for a nominal fee, you can have a clearer understanding of your debts and what you need to do to fix your credit history. Of course, your credit report may be perfect. If this applies to you, carry on as you were. As the adage goes, if it’s not broke don’t fix it.

But, if you have discovered a chequered debt history, it’s time to start being a grown up and taking the helm of your finances. You can do this via the debt consolidation route.

Assessing the Need for Debt Consolidation

Only you can make a judgment call on whether you need to consolidate your debts. At the risk of sounding blasé, you will know when the time is right. If you cannot manage, track and control your finances, you will know that the time is right to consolidate your debt.

Let’s take a look at some typical factors that contribute to the need for debt consolidation:

The inability to meet minimum payments: if you have lost your job, or you are simply unable to make the minimum repayments to a wide range of creditors, you will need to seek out debt consolidation advice

Avoiding correspondence from your creditors: should you be avoiding, ignoring and monitoring your calls, letters and emails from your creditors, it’s certainly time to look at your debt consolidation options.

You cannot make sense of your debt: in short, if you don’t know where your money is going and you have no idea how you will pay for your debt, it’s time to look at debt consolidation loans.

Your debt to income ratio is unequal: if your debt to income ratio exceeds more than what it should, you may need to consider looking at your options. For example, if you owe 60% of your take home pay in loans, you certainly need to look at consolidating your debts.

The Final Word on Debt Consolidation

Okay, so this may not be rocket science, but if you are in a lot of debt, finding a way out can be tough. With this in mind, it’s time to start looking at your options. You can ease your financial difficulties, but ultimately reward yourself with a greater peace of mind. Make sure that you are getting your finances back on track and being responsible regarding your financial affairs. A debt consolidation loan could be just what you need to make your finances more bearable.