If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that
Debt consolidation is the process of consolidating multiple loans into one and makes only one payment to the consolidator of the loans who takes cares of previous lenders. Usually debt consolidation helps in lowering the interest rates and securing fixed interest rates for the borrower. However there are also government loans for debt consolidation that a prospective client looking for debt consolidation can also make use of.Features of Debt ConsolidationMain features of debt consolidation are as follows.
- It is exchange of several unsecured loans with one consolidated unsecured loan.
- It does not absolve the borrower from the requirements of paying back the loans but often gets for them lower rates of interests and better loan payment options.
- Most often the loan is secured against some collateral that works as the security for the lender; and
- Collateralizing helps the borrower secure lower interest rates because they also agree to foreclosure by the new lender in case of inability to pay back even the consolidated single loan.
- Borrower will request certain amount of loans from the government and pay back the same at low monthly rates.
- Government debt consolidation loans can be tricky but they help save people from a lot of distress that might result from obtaining private debt consolidation loans.
- Standard payback in which the borrower will pay a set amount monthly till the loan is completely paid back;
- Extended payment plan that is used to increase the lifespan of loan obtained by gradually declining the amount of payment every month;
- Graduated payment plan that commences with low monthly rate till some predetermined time during which the monthly rate enhances; and
- Income contingent plan is one that takes the income of the borrower into account for deciding the monthly rate of repayment and can either make things better or worse depending on the current situation of the borrower.